The East German mechanical engineering industry recorded a significant decline in orders last year. "For 2024 as a whole, orders are down 22 percent in real terms compared to 2023," the industry association VDMA announced in Leipzig. While above-average incoming orders from abroad stabilized the annual balance sheet in December last year, the end of 2024 brought a significant slump.
In December, 38 percent fewer price-adjusted orders for machinery, systems, components and services were received than in the same month of the previous year. For the year as a whole, both domestic customers (down 13%) and foreign customers (down 24%) placed noticeably fewer orders.
Downward trend began in spring
"The industry had started the year well, but things went downhill from the spring onwards," explained Oliver Köhn, Managing Director of the Association East. There was a consistent lack of impetus, especially from the domestic market. "The uncertain economic conditions and structural changes played a decisive role here," emphasized Köhn. Orders from abroad, on the other hand, fluctuated greatly from month to month and had a significant impact on the statistics. In the end, however, foreign business also recorded a drastic drop. "This is a sign of the weak dynamics of the markets, but also of the strong international competitive pressure," said Köhn.
No rapid recovery in sight
The regional association managing director is also less optimistic about the coming months. "The lack of orders is just the harbinger and will present companies with considerable challenges in 2025." Köhn called for "a policy that promotes investment and relieves the burden on companies in their day-to-day business." Among other things, "taxes must be limited, approval procedures accelerated and unnecessary or disproportionate bureaucratic requirements capped".
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