In 2014, the mechanical and plant engineering sector in Germany suffered noticeable losses on foreign markets. According to preliminary calculations by the Federal Statistical Office, the nominal decline in exports amounted to 5.0% compared to the previous year. In total, machinery and equipment worth 199.6 billion euros was exported. Adjusted for prices, machinery exports were even 7.1% below the previous year's level over the course of the year. This largely corresponded to the decline in production in the mechanical engineering sector of (provisionally) 7.5% in real terms.

Europe performs worse than average

Exports to the countries of the European Union fell by 8.5% in nominal terms in 2024, which was above average. Particularly high declines were recorded in Italy, France and Poland. Overall, however, almost all EU countries recorded negative results, with the exception of Spain and Portugal, which recorded slight increases. Exports to the USA, the largest single market, fell by 2.1% last year after recording growth up to and including 2023. Exports to China, the number two in the export ranking, fell by a cumulative 4.5%. "The mechanical engineering industry is facing ongoing economic and structural challenges and geopolitical tensions worldwide, which are dampening global demand for machinery and equipment. Above all, the EU is now called upon to prevent a customs dispute with the USA, our most important trading partner. After all, such a trade war would only produce losers on both sides. In addition, the EU must now finalize the free trade agreement with the Mercosur states and negotiate new agreements all the more urgently," demands VDMA Chief Economist Dr. Ralph Wiechers.

Growth in Mexico and India as well as in the Near and Middle East

Latin America and the Middle East were the only positive outliers: specifically, exports to Mexico rose by 5.4% in 2024 and exports to India increased by 2.6%. The United Kingdom and Switzerland also showed stable development, while exports to the Middle East even saw double-digit growth. "Where structural reforms are taking effect, investments are being made in infrastructure projects or increasing economic diversification is being tackled, machine and plant manufacturers can continue to benefit from growing demand. Europe should take this as an example," emphasizes Dr. Wiechers.

Outlook for 2025

Ongoing geopolitical tensions, trade conflicts and structural challenges are likely to continue to weigh on machinery exports in 2025. "However, based on initial, still vague signs, we are hoping for stabilization and a tentative recovery in global demand," says the VDMA Chief Economist. There are opportunities in the areas of digitalization and sustainable technologies in particular. "The integration of digital intelligence, technical brilliance and resource-saving efficiency are crucial to securing competitiveness and tapping into new markets," emphasizes Dr. Wiechers.

Demands on politicians

In order to strengthen the competitiveness of the mechanical engineering industry, the VDMA is calling for increased political support, both nationally and internationally. "In addition to a long overdue improvement in the framework conditions at home, we urgently need new free trade agreements and greater international cooperation in order to secure access to international markets on the one hand and stabilize supply chains on the other. In addition, the framework conditions for investments in general and for those in research and development in particular must be improved," demands the VDMA Chief Economist.