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Reduce costs, increase sales
Keeping costs under control is the order of the day in turbulent times. Tapping into new markets and introducing new business models can boost sales and point the way to calmer waters. Monitoring price trends helps, as do cost comparisons and optimizations, funding opportunities, savings potential and structural and accounting levers.
Incoming order and turnover statistics, economic information, business climate reports, early indicators and numerous other market information support companies in evaluating the various options for action.
Reduce costs
The VDMA and Ebner Stolz guide uses case studies to show how companies can secure their competitiveness and remain successful in the long term by optimizing their portfolio, purchasing and inventory management.
To the"Guide to restructuring in mechanical and plant engineering"
The current economic situation is bringing working capital management (WCM) in mechanical and plant engineering back into focus. Until now, many companies have often only used order intake, sales and earnings as control variables. The "Working Capital Management" guide shows what WCM means in our industry and what adjustments you can make to increase your company's liquidity.
To the "Working Capital Management" guide
In Germany, state aid is available for sales financing, known as export credit guarantees. Those who do not regularly deal with this topic often come up against special questions for which the VDMA has many years of experience and can draw on a network of member companies.
As part of its work on key figures, the VDMA regularly collects information from its member companies. The VDMA Benchmarks Costs provide comparative key figures in the form of survey results on cost ratios and cost rates.
In times of crisis it is possible to renegotiate prices in the short term, but for sustainable cost optimization a larger wheel needs to be turned.
Although the situation in supply chains has eased, prices remain an important issue. To get an overview of current developments, it is worth taking a look at the interactive report.
In economically challenging times, companies are often faced with the difficult task of optimizing their personnel costs. A recent publication provides an initial overview of a wide range of measures that can be implemented, even in the short term, such as the targeted reduction of overtime or the introduction of short-time working through to staff reductions.
In the event of an increasing lack of orders and underutilization of capacity, companies and employees can use the instrument of short-time work with short-time allowance. The focus RECHT brochure "Short-time work and short-time allowance" provides an initial overview of the most important requirements for the introduction of short-time work and the granting of short-time allowance.
To the brochure "Short-time work and short-time allowance"
The economic downturn is putting enormous pressure on the economy. Many companies are under immediate pressure to act. Depending on the severity of the corporate crisis, various options for action are conceivable. The most drastic measure, staff reduction, is associated with various legal hurdles. The focus RECHT brochure "Dismissal for operational reasons" summarizes the most important points to consider and can serve as a checklist when staff reductions through dismissals for operational reasons are on the agenda.
To the brochure "Dismissal for operational reasons"
The parties to the collective agreement in the M & E industry in Baden-Württemberg have concluded a collective agreement that enables companies to lend employees to each other in order to avoid short-time working or redundancies.
The loss deduction in German tax law is a mechanism that enables taxpayers to claim losses for tax purposes. This can be done through loss carry-back or loss carry-forward. The most important provisions of the current legal situation on loss deduction for income tax, corporation tax and trade tax are summarized here.
Companies use restructuring provisions to account for future costs in connection with a planned restructuring. These provisions are required when measures such as the closure of business units, the relocation of production facilities or the dismissal of employees are imminent. Under what conditions can restructuring provisions be recognized? What costs can be taken into account?
The research grant supports basic research, industrial research and experimental development in Germany with up to EUR 2.5 million per year. The success rate in mechanical and plant engineering is high at over 80%. And the effort? Feasible!
Assessing and developing markets
We provide practical support for all questions relating to foreign business. We offer a wide range of specialist articles, newsletters, publications and events.
Find out more on the expert page "Markets worldwide"
With our foreign offices in Brazil, China, India, Japan, Singapore and the USA, we support you successfully on international markets. The VDMA offers industry-specific information and services on the markets and acts as a direct local contact, in close cooperation with the foreign branches of our members.
As part of the International Trade Fair Program (AMP), German companies can present themselves at selected trade fairs worldwide as part of joint BMWi stands. The VDMA trade fair calendar, which is published annually in the fall, provides an overview of the trade fairs relevant to the mechanical engineering industry worldwide. The trade fairs in the AMP are highlighted there.
The VDMA statistics database contains all figures, data and facts relevant to the mechanical engineering industry as well as information on customer industries. Here you will find information on foreign trade statistics with over 50 reporting countries, international forecasts and economic reports, results from our own surveys and much more.
The Economics and Statistics department provides you with all sector-relevant economic and market information. Benefit from our expertise and use our statistics as a basis for smart business decisions.
Monthly economic bulletins provide VDMA members with a quick overview of economic developments in the most important countries. The graphics are enriched with text modules that support your own market assessment.
In the international forecast index, the VDMA provides a compact list of the forecasts for machinery sales, GDP and equipment investments for the most important mechanical engineering countries.
The VDMA report "Mechanical Engineering Business Cycle International" provides an overview of the economic situation and outlook in 20 important mechanical engineering countries. In addition to numerous graphical representations for the individual countries, it also contains extensive text modules on the situation and outlook. There is a separate and somewhat slimmer edition for Germany, the "Forecast Report Germany".
To the VDMA report "Mechanical Engineering Economy International"
The VDMA surveys its members on a monthly basis about the current order intake and turnover in their own company. Only the participants receive the results from the highly regarded VDMA incoming orders and turnover statistics.
Especially in times of rapid change, it is important to keep an eye on the markets in order to exploit opportunities and minimize risks. With the VDMA Business Survey, we offer members - immediately at the beginning of each quarter - assessments of the economic situation in the mechanical and plant engineering sector in general, but also in the specialist sectors and specialist departments. Members can regularly use the market assessments of over 1000 VDMA members for corporate management purposes - for forecasting, production planning or sales management.
The business climate survey among VDMA member companies in Brazil, India and China, in which over 400 companies regularly participate, provides a comprehensive overview of the current business situation and future expectations of mechanical engineering companies in these important markets.
The VDMA conducts flash surveys among its members on an ad hoc basis and thus at irregular intervals in order to quickly gain insights and make these available to its members. In uncertain times, when the world can be turned upside down overnight, this provides members with quick orientation.
The Ministry of Heavy Industries (MHI) has published a Quality Control Order (QCO) for machinery in the "Gazette of India". From August 28, 2025, the products mentioned therein will require a market access mark.
Optimizing products, production and processes
Digital transformation is becoming a key issue for success in mechanical and plant engineering. The short study "Success factors of digital business models" highlights options for action for companies.
To the IMPULS study "Success factors of digital business models"
Tokenization has the potential to fundamentally change industrial networks and enable new forms of collaboration. The combination of blockchain technology, smart contracts and tokens creates an infrastructure through which data and resources can be exchanged securely, transparently and in a highly automated manner. The study "Tokenization in mechanical engineering" attempts to make the potential of this future technology tangible for the industry.
Parallel to digital product development, potential commercialization must be identified and determined. The guide "Successfully marketing digital offerings" explains whether and how a product can be marketed and monetized.
Artificial intelligence is a key technology for increasing productivity and improving product functionality in mechanical and plant engineering. The AI Regulation is therefore highly relevant for many companies. The FAQ developed by the VDMA together with FPS Fritze Wicke Seelig Partnerschaftsgesellschaft von Rechtsanwälten mbB serves as a first quick and non-binding orientation in the context of the new AI regulation.
To the brochure "Use of AI in companies - Frequently asked questions (FAQ)"
Many companies are already using generative AI to continuously improve processes and complete automatable tasks faster. The VDMA expert group "Machine Learning/AI" has drawn up a checklist for the use of generative AI to help avoid errors and minimize risks.
By using data rooms, a mechanical engineering company is able to meet the requirements of the EU General Data Protection Regulation without having to give up its own interests worthy of protection. The data room promotes digital sovereignty, as the data only has to be released in accordance with the rules of the data room network, i.e. the agreed data governance. The company knows with whom, for what purpose and for how long the data is shared. The trustworthy and sovereign exchange of data across company boundaries is the unique selling point of an industrial data room. It therefore enables new digital, data-driven business models that open up sales, savings and therefore profit potential.
How can I optimize my production?
In mechanical and plant engineering, it is common for components and systems from different manufacturers to have to work together - both within individual systems and across a complex production line. Without standardized interfaces, this collaboration is only possible with a high level of integration effort and individual adaptations. Interoperability drastically reduces this effort, lowers engineering costs and enables a future-proof, modular system architecture.
The study ‘Frugal Innovation in the Engineering Sector’ by the VDMA IMPULS Foundation provides companies with a guide and helps them to understand that a precise understanding of customer needs brings many advantages. Because often, less is more: less energy, less material, less transport, less complexity, less costs.
Smaller companies in particular are often unable to make major investments in new locations or particularly expensive production technologies on their own due to the associated risks. This becomes possible with partners within the framework of usage-based "Production as a Service" models. For some companies, this also opens up new sales opportunities for their own products.
We offer our members a comprehensive range of consulting services to accompany and support them holistically on their way to becoming a climate-neutral company.
Read more on the expert page "Climate-neutral production"
With the practical guide "Climate-neutral production", the VDMA provides clarity on the topic of climate-neutral production and develops practical assistance for implementing these challenges - from the introduction to emissions reporting and the purchase of green electricity to questions relating to offsetting options and supply chain commitment.
Mechanical and plant engineering plays a key role in reducing global greenhouse gas emissions. Not only because machines are becoming increasingly efficient and therefore more resource-efficient, but also because the mechanical and plant engineering sector equips all industrial sectors worldwide with state-of-the-art technology. A study by BCG and VDMA shows how much potential there is in combining innovative technologies with climate protection.
The mechanical and plant engineering industry operates in a dynamic environment in which social, technological, economic, ecological and political developments are constantly changing the framework conditions for companies. In order to be able to react to these changes at an early stage, the 2024 special edition of the VDMA Trend Radar provides an overview of current and, according to current knowledge, expected future developments.
Tracking down startup trends and contacts for the mechanical engineering industry worldwide - this is the mission we pursue with our startup scouting services. Find out how we can help you keep an eye on international startup activity and identify suitable partners.
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