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The VDMA Business Survey Q1/2025 ran from March 18 to 28, 2025 and received almost 1240 responses from 940 companies. The mood has brightened slightly. This is a snapshot in view of the latest tariff announcements by the USA.
Incoming orders from abroad for mechanical engineering in Rhineland-Palatinate stagnated in April 2025, after falling in February and March but rising by double digits in January.
Domestic orders for Saarland-based mechanical engineering companies have been falling since January 2024 and declined by a further 0.7 percent in April 2025, resulting in an overall decline of 11.2 percent for the first four months of 2025.
In April 2025, incoming orders presented an unusual picture: extremely weak foreign orders contrasted with strong domestic demand. Overall, orders were clearly in the red.
Incoming orders in the mechanical engineering sector fell by 6% in real terms in April compared to the previous year. An expected setback, given the uncertainty caused by US tariff policy.
Incoming orders in Hesse continue to fluctuate greatly.
The global business situation in the mechanical engineering sector remains mixed. While India and Brazil are impressing with good figures, China is struggling with structural challenges. The USA is characterized by the latest tariff policy.
Incoming orders from abroad for the mechanical engineering sector in Rhineland-Palatinate fell by 4.7% in March 2025, following a double-digit increase in December and January.
Sentiment among companies in the mechanical and plant engineering sector in Baden-Württemberg remains low
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The mechanical engineering sector started the year with a subdued export result. March at least showed a slight upward trend. However, the weaknesses in the Chinese and EU markets remain serious.
Domestic orders for mechanical engineering companies in Saarland have been falling since January 2024 and fell by a further 3% in March 2025, resulting in an overall decline of 8% in the first quarter of 2025. (see table 1 and chart).
Buoyant foreign orders - weak domestic demand: In March 2025, incoming orders showed two very different faces. The bottom line was a considerable increase of 30 percent.
The first quarter of 2025 resulted in an overall increase in orders of 4% - the first positive quarterly balance of orders in three years. March also closed with a pleasing increase in orders of 4%.
In our quarterly report, we provide you with information on India's macroeconomic development, as well as detailed information on the manufacturing industry and individual sectors with a particular focus on machinery and equipment.
After the poor start to the year for foreign orders in mechanical engineering in Hesse in January (-15.8%), orders rose by 6.6% in February 2025. This represents a decline of 6.1 percent up to February.
Incoming orders from abroad for the mechanical engineering sector in Rhineland-Palatinate fell by 0.5% in February 2025, following a double-digit increase two months earlier. Growth of 5.9% therefore remains until February.
Domestic orders for mechanical engineering companies in Saarland have been falling since January 2024 and fell by a further 15.6% in January 2025, resulting in a total decline of 10.3% by February 2025 (see table 1 and chart).
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Sentiment in the mechanical engineering sector improved somewhat at the start of 2025, but remains very mixed. A majority of companies do not expect slight growth again until 2026.
EU machinery and equipment manufacturing companies currently rate their competitive position as worse than the long-term average. This is particularly true to companies based in Germany.
India's Interim Union Budget for 2024 projects a reduction in the revised fiscal deficit and a decline in inflation. These key economic indicators signal a promising future for the Indian economy, even amidst global economic uncertainties.
After a weak start to the year, patience is still required: the eastern German mechanical and plant engineering sector once again saw a drop in orders in February. Only customers from the eurozone invested generously.
In February, order books in the mechanical engineering sector filled up unexpectedly strongly by 8% in real terms. Part of this growth was due to large-scale plant business and part to component business.
For the second month in a row, incoming orders from abroad for the mechanical engineering sector in Rhineland-Palatinate showed double-digit growth, following four months of double-digit declines.
Domestic orders for mechanical engineering companies in Saarland have been falling since January 2024 and fell by a further 23.8% in December, resulting in an overall decline of 12.2% for 2024 (see table 1 and chart).
Thuringia's mechanical and plant engineering sector continued the previous year's very good sales result in 2024 despite the difficult conditions. The industry fell just short of the 4 billion mark.
The machinery and equipment industry in Europe can hold its own in the face of increasingly tough global competition - if the promised relief comes and companies push ahead with their transformation.
In 2024, price-adjusted production output in the EU mechanical and plant engineering sector contracted by 7 percent compared to the previous year.
After three months of growth, foreign orders in the mechanical engineering sector in Hesse fell again slightly by 0.8 percent in December.
For the eastern German mechanical and plant engineering sector, 2025 began as the previous year ended: with a drop in orders.
After three consecutive years of growth, Saxony's mechanical engineering companies lost momentum in 2024. Turnover and employment figures are pointing downwards. The association expects a mixed result for 2025.
In December, incoming orders from abroad for mechanical engineering in Rhineland-Palatinate increased significantly by 32.7%, following four months of double-digit declines.
The mechanical engineering sector is feeling the effects of the recession - yet companies only reduced their workforce by just under 1% in 2024. Even now, the core workforce is to be retained as much as possible.
For the third time in a row, foreign orders in the mechanical engineering sector in Hesse have increased. In November it was even a double-digit plus of 17 percent.
The year 2024 ended with a bitter blow for the eastern German mechanical and plant engineering sector. The significant drop in December put additional pressure on the already weak annual balance sheet.
The overall result for orders in 2024 in the mechanical and plant engineering sector is disappointing. The wait for a turnaround continues. Better framework conditions in Germany are an important aspect of this.
The mood in the mechanical engineering sector remains tense, with one in three companies rating their own situation as poor. Business prospects are a small ray of hope - but reforms are urgently needed.
Domestic orders for mechanical engineering companies in Saarland have been falling since January 2024 and fell by a further 13.7% in November, resulting in a decline of 11.3% for the first eleven months of 2024 (see table 1 and chart).
In November, incoming orders for mechanical engineering in Rhineland-Palatinate fell for the fourth month in a row, with double-digit declines of 21.2% in Germany and 17.9% abroad. This means that the declines are again sharper than in the previous month.
In October, incoming orders for the mechanical engineering sector in Rhineland-Palatinate fell by 10.6% in Germany and 15.2% abroad for the third month in a row.
Foreign orders in the mechanical engineering sector in Hesse rose by a further 2.1% in October following 7.8% in the previous month. This was the fifth increase so far in 2024.
The increase in orders in October was only enough for the eastern German mechanical and plant engineering sector to breathe a brief sigh of relief - orders slipped back into negative territory in November 2024 compared to the same month last year.
A small ray of hope in orders from eurozone countries in November does not change the overall weather situation: orders in the mechanical engineering sector are not gaining momentum.
Even though incoming orders increased slightly in the first quarter of the year, forecasts for the mechanical engineering sectors remain cautious. The uncertainty is too great - especially with regard to the USA's customs policy.
VDMA member companies see the US market as an opportunity and are cautiously optimistic about the coming years. Many are building on good or even very good competitiveness, but this must be defended.
In September, foreign orders in the mechanical engineering sector in Hesse finally rose again by 7.8%. This was the fourth increase so far in 2024.
In September, incoming orders for mechanical engineering in Rhineland-Palatinate fell by 17% in Germany and 22% abroad for the second month in a row.
Heavy seas and no calm in sight: the mechanical engineering industry expects a decline in production and a slight reduction in jobs in 2025. A political turnaround is needed to strengthen the industry.
The mechanical and plant engineering industry in North Rhine-Westphalia continues to be burdened by the weak global economy and by geopolitical challenges. VDMA NRW expects production to decline by 2% in real terms in 2025.
Tentative breath of fresh air in eastern German mechanical and plant engineering. At the start of the fourth quarter of 2024, both domestic and foreign customers placed more orders than in the same month last year.
Order books in the mechanical engineering sector remain weak, with 9% fewer orders booked in October than in the previous year. Customers remain hesitant to make new investments
After the very weak economy in 2024, hopes are pinned on markets picking up in 2025 / Politicians must set business-friendly framework conditions
A weak global economy and many structural problems at home are weighing on the export business in the mechanical engineering sector. Exports fell by a good 5 percent in the first nine months.
In August, there was once again no positive outlook for incoming orders in the mechanical engineering sector in Hesse, with double-digit declines of 13.5 percent from Germany and 13.9 percent from abroad.
In August, incoming orders for mechanical engineering in Rhineland-Palatinate fell by a double-digit 22.3% in Germany and 25.5% abroad.
Customers continue to invest with the handbrake on. In September 2024, incoming orders in the eastern German mechanical and plant engineering sector therefore remained significantly below the previous year's level.
The order situation in the mechanical engineering sector remains weak, particularly in Germany. However, companies are also still waiting for new investment momentum in global business.
On October 28, the Russian central bank raised the key interest rate to 21 percent. At the same time, it indicated that the interest rate could soon rise even higher. The reasons are high inflation and the overheated economy.
Domestic orders for mechanical engineering companies in Saarland have been falling since January 2024 and fell by a further 10.3% in October, resulting in a decline of 11.1% for the first ten months. (see table 1 and chart).
The mechanical and plant engineering industry in Baden-Württemberg is facing a number of pressing challenges.
According to the latest VDMA survey, the mood and prospects in the mechanical engineering sector have deteriorated noticeably. This makes it all the more urgent for politicians to finally set the course for new growth.
Summer mood in August? Fiddlesticks! Incoming orders in the eastern German mechanical and plant engineering sector remained well below the previous year's level in August 2024.
In August, incoming orders in the mechanical engineering sector increased by 7% compared to the previous year. However, the upward outlier is not yet a trend reversal; special factors were responsible for the result.
The following summarizes the discussions with VDMA members' branches in Turkey and with Turkish mechanical engineering companies as well as the second meeting of VDMA members in Istanbul.
Weak global trade and a lack of investment will result in an 8% drop in mechanical engineering production in 2024. A trend reversal will probably not set in until 2025.
For the first time in months, orders only fell in single digits in July. However, this does not yet mean a turnaround; there is a lack of impetus for new investments worldwide.
Incoming orders in the eastern German mechanical and plant engineering sector increased in July 2024 compared to the same month last year. However, there are clear differences between domestic and foreign orders.
In June, incoming orders for mechanical engineering in Rhineland-Palatinate fell by 4.1% in Germany and by 5.9% abroad.
In June, there was a double-digit decline of 21.5% in incoming orders from the domestic mechanical engineering sector in Hesse, a correction to the good result of the previous month, which had special effects with growth of 42%.
In May, incoming orders for mechanical engineering in Rhineland-Palatinate fell by a double-digit 19.1% in Germany and by 8.4% abroad.
Domestic orders for Saarland mechanical engineering companies fell for the fifth consecutive month in May by 7.2%, resulting in a decline of 9.2% for the first five months.
The eastern German mechanical and plant engineering sector closed the first half of 2024 with a disappointing order intake. The balance from January to June is also negative compared to the previous year.
There are no signs of a turnaround in incoming orders. Orders fell significantly in June and also with a view to the first half of 2024. Germany and the euro countries in particular are weakening.
High uncertainty weighs on demand for capital goods.
In April, incoming orders in the mechanical engineering sector in Hesse rose by 6.2% across the board. This is the first increase since October 2022.
The mood in the mechanical engineering sector has deteriorated, even with a view to the year as a whole. According to the VDMA economic survey, investments will not increase again until 2025.
Domestic orders for mechanical engineering companies in Saarland fell for the fourth consecutive month in April by 2.0%, resulting in a decline of 9.6% for Q1 2024 (see table 1 and chart).
According to our first VDMA-wide economic survey, the mechanical and plant engineering sector in the four northern German states of Lower Saxony, Bremen, Hamburg and Schleswig-Holstein is largely expecting the business situation to remain stable.
Incoming orders for mechanical engineering in Rhineland-Palatinate saw a double-digit increase of 14.1% in April 2024. At 12.1%, foreign orders grew less strongly than domestic orders at 18.4%.
In May 2024, eastern German mechanical engineering customers ordered significantly fewer goods than in the same month last year.
In May, orders in the mechanical engineering sector were 27% below the previous year's figure in real terms. A large part of the decline can be attributed to a base effect, but the result also reflects a continuing weakness in investment.
In April 2024, eastern German mechanical engineering companies registered more orders than in the same month last year. This was mainly due to demand from foreign customers.
Order situation is lukewarm, investment plans are at a standstill. USA continues to be the driving force, while China disappoints.
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