Economic Situation - vdma.eu
Economic Development & Business Situation
The economic cycle plays a significant role in almost every area of the economy. After all, it plays a key role in determining the well-being of companies and employees. In fact, it is particularly relevant in the machinery and equipment manufacturing sector. After all, it plays a key role in determining the well-being of companies and employees in the mechanical engineering sector.
The latest VDMA economic report on the USA shows a dynamic market and industrial environment. Now exclusively for members - with interactive charts and current economic data.
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.
The quarterly report contains relevant key figures such as production, sales, profit and investment trends in the local machinery & equipment industry as well as important customer industries in China.
Economic development varies greatly around the world. Signs of recovery are currently still muted.
It's the same exercise every year: as part of the preparation of the management report, an overview of the overall economic development and the situation in the industry usually has to be provided.
The VDMA Business Survey Q4/2025 ran from January 13 to 28, 2026. 1331 responses were received from 965 companies. The mood has brightened slightly.
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 special focus on machinery & equipment.
The US tariffs are putting VDMA member companies under severe pressure. Almost half of the companies are reporting a decline in incoming orders and many are reporting significant falls in sales.
Incoming orders were disappointing in the first ten months. The euro partner countries are a ray of hope. There is cautious optimism for 2026, but trade, geopolitical and domestic political developments remain uncertainty factors.
The forecast for real German machinery production was confirmed at the VDMA annual press conference at -5 percent for 2025. Growth momentum is also expected to remain weak in 2026, at +1 percent.
Incoming orders in the mechanical engineering sector rose by 4% in real terms in October compared to the previous year. This was driven by non-euro countries. The growth is pleasing, but only represents consolidation at a low level.
In 2026, global machinery and equipment turnover is expected to grow by 2% on a price-adjusted basis. Growth in Asia will remain above average. Stagnation looms in the EU-27.
The global economy is in a phase of reorientation, characterized by uncertainty, fragmentation and technological transformation.
The global business situation in the mechanical engineering sector shows light and shade - with significant regional differences. Positive signals are coming from India and Brazil, while the business situation in China and the USA remains difficult.
Mechanical engineering companies in Germany recorded a sharp decline in their order books in September. This also resulted in a slight drop in orders for the first nine months of 2025.
Mechanical and plant engineering is one of the world's most important industrial sectors. We show the wide range of its economic indicators - presented in interactive charts and tables.
As in the previous year, demand for capital goods was weak in 2024. Machinery and equipment worth an estimated 3.26 trillion euros was sold worldwide, 1.5% less than in 2023.
Stay successful in a volatile market: VDMA offers an interactive report on European business climate indicators. Follow the developments of your most important European target markets and customer industries at a glance and make informed decisions based on current data.
Trade conflicts, bureaucracy and rising costs are slowing down the mechanical engineering sector. Production will fall by 5 percent in 2025. VDMA President Kawlath calls for an "autumn of action".
The slight easing in order books in July is not a trend reversal: The hoped-for momentum in investments in mechanical engineering is still lacking. The promised relief must therefore come in the fall.
In the first half of 2025, price-adjusted production output in the EU machinery and equipment sector shrank by 3% compared to the previous year.
The business outlook in the mechanical engineering sector remains virtually unchanged, while the mood among companies remains tense. There are significant differences between the sales regions.
Incoming orders in May were a positive surprise - albeit on a weak prior-year basis. Overall, companies have recorded a small increase in orders so far this year, but global uncertainty remains high.
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.
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.
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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.
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.
In 2024, German machinery exports to Latin America increased by 0.8% - after three previous years of strong growth. The Chart Pack provides facts and figures on the market.
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.
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.
VDMA regularly generates data sheets with important indicators for its members. Raw data from various sources are processed for these. The latest data are provdided in our statistics database.
The VDMA statistics database offers all VDMA member companies fast and convenient access to economic information on all aspects of mechanical engineering.
In the last two years, the bottlenecks on the labor market for engineers have become much more acute. Never before has the mechanical engineering sector been looking for so many employees, and never before have there been so many vacancies for engineers.
The global mechanical and plant engineering industry reached a new record high in 2021. In euro terms, around 15% more machines were sold than in the previous year. China cracked the 1 trillion euro mark.
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In 2022, machinery and equipment sold worldwide was worth almost 3.4 trillion euros. In euro terms, this is around 12 percent more than a year earlier. In the TOP 10 country ranking, there were changes from seventh place onwards.
Mechanical engineering companies from Germany have to hold their own in an increasingly difficult economic environment. The year 2019 was marked by a weak global economy, increasingly harsh threats and sanctions in the global trade disputes, as well as a far-reaching structural change in the automotive industry.
As part of the ifo Business Survey, around 10,000 companies - including over 400 mechanical engineering firms - from Germany report their assessments of the current business situation, the outlook and much more important information to the economic research institute every month. Not a reporter yet? Then it is high time!
The brochure "Mechanical engineering - figures and charts 2022" provides a comprehensive overview of all the important statistics relating to mechanical engineering.
The Economy and Statistics Department in the VDMA collects industry relevant data and information that is not available from other sources in all its complexity. The information available includes:
A strongly rising order intake, better capacity utilization and a real production increase of 6.0 percent in the first four months of the current year: The economic momentum in the mechanical engineering industry is increasingly gaining momentum.
The German mechanical and plant engineering industry takes a fundamentally positive view of the German government's economic stimulus package. In terms of its thrust, it is suitable for triggering a surge in innovation, especially investment in climate technologies, digitization and drive systems in transition. In terms of tax policy, important steps to secure liquidity are planned. The historic sum of 130 billion euros commits to an efficient use of funds. Only in this way can competitiveness be strengthened after the crisis.
The ifo Business Survey regularly provides indicators that allow an assessment of the economic development as well as the mood in companies. These so-called leading indicators can provide important information for assessing the future course of business.
The majority of companies in the mechanical and plant engineering sector are planning to recruit new staff. The situation has improved for young talent as the companies plan to expand their vocational training and dual study programs. Companies, on the other hand, are threatened with personnel bottlenecks that could endanger their innovative thrust.
Business surveys provide data on the business development of individual industries in the form of judgments, plans and expectations. In day-to-day business practice, the survey results can be used for market observation and forecasting.
The EU Commission forecasts an 8 percent growth in investment in machinery and equipment in 2021 and another 6 percent in 2022.
Covid-19 pandemic has left its mark
Subsaharan Africa's growth has long been at a low level. Accordingly, the importance of its market for international machine manufacturers was low for a long time. However, the subcontinent is likely to gain in importance in the future due to its dynamic population growth compared to the rest of the world. In the next 30 years, Subsaharan Africa's demand for machinery could multiply.
Demand for capital goods remains robust. However, shortages of materials are hampering the progress of orders to varying degrees.
The Chairman of the Metallurgy Association, Till Schreiter, outlined the situation of metallurgical plant engineering in light of current geopolitical and economic upheavals in a keynote speech at the Hüttentag 2025.
Learn more about our statistics at VDMA Robotics + Automation.
Dr. Timo Würz outlined the state of European thermal process technology in the face of a challenging global environment in a presentation at the IHEA Annual Meeting.
Africa's packaging industry is booming - but every market is different. VDMA expert Daniel Dellemann shows where opportunities lie, which trends count and why local partners are crucial for successful market strategies.
High uncertainty, declining exports and subdued investment characterized the business climate in the metallurgical machinery and plant engineering industry in 2025. The industry expects a moderately positive business outlook for 2026.
In December, incoming orders for food processing and packaging machinery increased by 17% in real terms compared to the previous year. Domestic orders rose by 15% and orders from abroad by 17%.
We produce monthly data sheets on various sectors, categories and countries based on data from Euromonitor International. We publish these via the NuV-Telegram newsletter and make them available for download here.
Europe's construction sector is gradually recovering - thanks to stable prices, better financing and subsidies. New construction will be the most important driver of development in the future. In Germany, however, this will not become a reality until 2027 at the earliest.
East German mechanical and plant engineering sector records real order growth of 3 percent in 2025 VDMA East calls for rapid investment from special funds in transport, energy and logistics infrastructure
Market information forms the basis for many business decisions. With directly collected data and a wealth of secondary information, the Valves Association offers comprehensive know-how on industry and market developments.
Thanks to good international business, industrial valves manufacturers closed the year 2025 on a good note. However, domestic sales fell again in December.
As an important service, VDMA Armaturen offers member companies regular updates on key industry facts relating to the building and industrial valves industry.
Monthly tracking of the market development of valve-relevant raw materials with a focus on non-ferrous metals
Monthly tracking of the market development of raw materials relevant to valves with a focus on steel and cast iron.
After an already weak previous month, sales for building fittings manufacturers continued to fall in December. Foreign business in particular fell sharply.
In January 2026, 240 new fire fighting vehicles were registered in Germany.
German production of food processing and packaging (FPaP) machinery increased by 3.6% in the first three quarters of 2025. Packaging machinery production increased significantly.
The construction equipment industry is starting in 2026 with a mixed picture. Even though the figures are more positive than in previous years, the industry continues to face a difficult political and economic environment.
Hamburg, February 5, 2026 - In 2025, the order intake of VDMA member companies in the Northern Association (Bremen, Hamburg, Lower Saxony and Schleswig-Holstein) was slightly above the previous year's level by one percent on a price-adjusted basis.
External shocks and home-grown problems are weakening the country's competitiveness.
In December 2025, incoming orders in the mechanical and plant engineering sector in North Rhine-Westphalia exceeded the previous year's level by 14% in real terms.
The Bavarian mechanical and plant engineering sector closed the year 2025 with an increase in incoming orders. Overall, orders increased by 6 percent in real terms.
Baden-Württemberg's mechanical engineering sector closed the year with a real decline of 2 percent in incoming orders for 2025.
As global supply chains shift, ASEAN’s strategic importance grows. This publication offers data-driven insights, manufacturing trends, and member experiences shaping growth in Southeast Asia, in collaboration with GTAI and EDB.
With a monthly update, which is exclusively available to VDMA member companies for download, we inform you about the development of price indices for process engineering goods.
Orders fell again in November. The picture for sales is mixed.
Incoming orders in the mechanical engineering sector in Rhineland-Palatinate also showed a double-digit improvement in November. Only the domestic market is weakening in terms of sales.
On a monthly basis, our economic update gives a brief overview of the ecomomic situation of the construction equipment industry, e.g. order income, turnover, business climate and trade figures.
The trade association's economic committee is aimed at commercial managing directors and sales managers. The events focus on industry-specific topics and general corporate management issues.
The trade association offers its members a wide range of market information. No other source provides such meaningful and up-to-date data for fluid power.
In November, incoming orders for food processing and packaging machinery rose by 7% in real terms compared to the previous year. Domestic orders rose by 32% and orders abroad by 3%.
No upturn in orders in November 2025, sales rise sharply
The global market for mining equipment will grow significantly in the coming years.
In December 2025, 341 new fire department vehicles were registered in Germany.
A look at the current demand situation at VDMA member companies and how foreign trade has recently been going for European materials handling and intralogistics manufacturers.
In November 2025, incoming orders in the Bavarian mechanical and plant engineering sector recorded a year-on-year increase of 12% in real terms
Orders rose by double digits in October. The picture is mixed when it comes to sales.
In November 2025, the mechanical and plant engineering sector in North Rhine-Westphalia recorded a 4% decline in incoming orders in real terms compared to the previous year.
Following a slight increase in orders in October, the order situation in Baden-Württemberg's mechanical and plant engineering sector continued to strengthen in November.
Information on the development of incoming orders for manufacturers of compressors, compressed air and vacuum technology can be found here.
Information on the development of incoming orders for liquid pumps can be found here.
Europe's and Germany's competitiveness is under threat: weak investment and political inaction are jeopardizing the mechanical and plant engineering industry. Fast, decisive reforms are needed now.
In recent years, India's economic development has been characterized by strong momentum, structural change and growing importance on the world stage, including rising employment and expanding private consumption.
Technology, competition, prospects - Dr. Marcus Wirtz, Chairman Mining & Minerals, in an exclusive VDMA interview.
On November 6, 2025, members of VDMA Laser met in Frankfurt. The meeting provided insights into market trends, international developments and strategic challenges in laser technology – from China policy to future technologies.
‘The society we live in is built on metal.’ This is how Stefan Romedahl, President of the Swedish company Boliden Mines, expressed it at the VDMA Mining & Minerals Industry Meeting.
In October, incoming orders in the food processing and packaging machinery sub-sector were 7% down on the previous year in real terms. Domestic orders were up 30% on the previous year, while orders from abroad fell by 14%.
Download the key figures (in German) here.
Download the key figures (in German) here.
In November 2025, 288 new fire department vehicles were registered in Germany.
Important questions on this topic
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How is the economic situation of the German machinery and equipment manufacturing industry developing?
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How is the international economic situation developing with regard to machinery and equipment manufacturing?
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How is the economic situation developing in the specialist branches of the German machinery and equipment manufacturing industry?
Events
Serbia is becoming an increasingly important market for mechanical and plant engineering. This concise web event provides an expert overview of market opportunities, market entry strategies and nearshoring potential.
Meeting of management and sales managers of Chinese subsidiaries of VDMA member companies of the Power Transmission Engineering, Fluid Power and Electrical Automation associations
Event on July 2 and 3, 2026 at Linak A/S in Denmark
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