The German VDMA sums it up: ‘Together we will find the right course and strengthen the resilience of companies,’ it promises its members. The goal is to ‘safely navigate economic turbulence.’ Looking back at the first quarter of 2025, there is at least a glimmer of hope. Although the mechanical and plant engineering in Germany started the new year with a decline of 2.6 per cent compared to the same period last year, there was a slight upward trend in March. A closer look at the export markets reveals new momentum in the Middle East, Central, South and Southeast Asia, Africa and Latin America. Exports to these countries increased noticeably, in the Middle East by as much as 13.4 percent. “This development is an opportunity, but it needs targeted political support. For example, through new trade agreements and more support for financing and market access,” says Dr. Gernandt, chief economist at the VDMA.
Setback due to uncertainty
However, as the export quota for all specialist areas is around 80 per cent, restrictions on open trade would have serious consequences. The US government's customs policy and the associated uncertainties could hit German mechanical engineering companies hard. This is because the USA is the largest single market. In April, order intake already fell by 6 per cent. At least orders from euro partner countries increased by 11 per cent.
Is the big ‘deal maker’ directly or indirectly controlling the fate of German mechanical engineering? The VDMA is fighting back – and it is relying not only on a U-turn in policy, but above all on the strength of its members. Association President Bertram Kawlath put it this way in the Süddeutsche Zeitung in January: "When the world is moving so fast, there is no time for complacency. I am a sailor. When the wind is blowing strongly, you have to get out of the cabin, even if it's not very comfortable outside."
The VDMA sees itself as a guide for its member companies. Among other things, it wants to support them in responding flexibly, adapting structures and bringing the right innovations on board. At the same time, companies should keep their costs under control and tap into new markets and new business models. With the right recruiting strategies and modern personnel development, the mechanical and plant engineering industry aims to prevent a shortage of young talent. The VDMA provides its members with immediate assistance by guiding them through the regulatory jungle. However, it also confronts political leaders with the need for reforms, ranging from reducing bureaucracy and expanding infrastructure (digitalisation, energy including renewables, transport) to modernising labour markets.
