ZVEI President Dr. Gunther Kegel explained at a press conference that the industry is struggling with high burdens from bureaucracy and taxes as well as global uncertainties. "Real production is expected to fall by 2% in 2025," said Kegel.

The number of employees in the sector fell moderately by 2% to around 890,000 in 2024. "Companies will not be able to maintain this almost constantly high employment figure if the economy does not pick up quickly," warned Kegel. The association sees a positive signal in a slight increase in incoming orders at the beginning of the year of 2% compared to the same period last year. "This is an initial sign of stabilization - albeit at a low level. However, we do not yet see a real trend reversal," continued Kegel.

Reform demands and infrastructure measures

The industry is pinning its hopes on the infrastructure measures announced by the upcoming federal government. "The special fund can be an important impulse - if it quickly leads to concrete investments to modernize the country," explained Kegel. The ZVEI is calling for investment in the following areas in particular:

• Expansion of the electricity grid to ensure a stable and cost-effective energy supply.
• Decarbonization of the building sector to achieve climate targets.
• Promotion of key technologies such as microelectronics and battery technologies.

However, Kegel warned that structural reforms were necessary to enable higher growth in the long term. "Otherwise, there is a risk that the special fund will fizzle out as a flash in the pan," said the ZVEI President.

Industrial AI as a driver of innovation

The association sees great potential for the electrical and digital industry in the use of artificial intelligence (AI). "AI is the new wrench in the works for industry," said Kegel. Germany is further along in the development of powerful AI applications than is often perceived. "Almost all automation companies already offer AI-supported solutions," he emphasized.

However, the ZVEI criticizes high regulatory hurdles. Tough regulations should only be limited to a few critical use cases, as high compliance and certification costs of up to 300,000 euros are too much for many small and medium-sized companies. "We are still providing the operating system for the global industry. But too much innovation-inhibiting regulation could lead to us being left behind by the next American or Chinese software update," warned Kegel.

Progress in electrification and infrastructure

Despite the difficult economic situation, the ZVEI is optimistic about the coming years. "The megatrends of electrification, digitalization and automation are intact and will give the industry a boost again," explained Wolfgang Weber, Chairman of the ZVEI Management Board.

The association's eMonitor shows positive developments. For example, the number of e-charging points increased by 33% compared to the previous year and the storage capacity of battery-based commercial and large-scale storage facilities grew by 45%.

Weber emphasized the importance of competitive electricity prices for the industry. "The performance of German industry stands and falls with the price of electricity. A reduction of five cents per kilowatt hour by reducing the electricity tax to the European minimum and halving the grid fees is good and right. The new federal government will have to be measured against this."

Hannover Messe as a platform for dialog

In 2025, the ZVEI's'All Electric Society Arena' will once again be the focus of dialog with politics and science. Key topics will be discussed in high-level panel discussions:

• How can the industrial transformation succeed?
• What political framework conditions are necessary at federal and EU level?
• How can technological innovations be disseminated more quickly?

The Hannover Messe thus demonstrates once again that innovations and future technologies are decisive for the competitiveness of German industry.