According to the VDW (German Machine Tool Builders' Association), domestic orders fell by 13% in Q2/2024, while orders from abroad declined by 33%. Calculated for the first half of 2024, incoming orders fell by 26% compared to the same period last year. Germany lost 7 percent. International orders were down 33% on the previous year.

Dr. Markus Heering, Executive Director of the VDW, Frankfurt am Main, comments: "The order volume is the lowest since the final quarter of 2020. While orders from abroad fell significantly, domestic orders held up better. However, this is not the hoped-for trend reversal, but rather a few selective and project-driven transactions," Heering continued.

Automation remains an important driver

Overall, there is a lack of business across the board, both in terms of customer industries and markets. Industries such as aviation, medical technology, energy and shipbuilding are providing positive support in certain areas. E-mobility is currently slowing down due to weak sales figures. Service, components, repairs, maintenance and conversions are developing significantly better than the new machine business. In general, automation remains an important driver.

A gradual stabilization of the order situation is not expected until the second half of 2024, especially in the final quarter. Important industry trade fairs such as AMB in Stuttgart, IMTS in Chicago and Jimtof in Tokyo could provide impetus here. Nevertheless, orders for 2024 as a whole will remain significantly negative.

For 2025 and 2026, VDW forecasting partner Oxford Economics expects a noticeable, regionally broad-based recovery in demand for machine tools. Foreign demand is expected to pick up strongly again, while momentum in Germany will be significantly weaker.
"However, the forecast growth cannot compensate for the losses from the downturn of the previous two years," says Heering. Previous peaks are still a long way off. While the international market is at least approaching the 2018 level in nominal terms, the domestic market is losing ground structurally compared to previous times, the VDW Executive Director concludes.

Due to the weak order situation and falling order backlogs, production will have to accept significant setbacks in the current year. A decline of 8 percent is forecast.