Saxony's mechanical engineering sector has recovered after the pandemic

According to statistics, Saxony's mechanical engineering sector has recovered after being hit by the Corona pandemic. This was announced by the German Engineering Federation East (VDMA) on Thursday. According to the report, the industry recorded a nominal five percent increase in sales in 2022 compared to the previous year. The VDMA East referred to data from the State Statistical Office for companies with at least 50 employees.

"Things were already looking up again in 2021, and now the industry has continued its recovery process," said Oliver Köhn, managing director of the VDMA East. However, he said, sales figures remain well below those achieved before the pandemic. Total sales in 2019 were at an all-time high of €8.3 billion, he said. In 2020, only 6.7 billion euros had been achieved, according to VDMA East, and 7.4 billion euros the following year. Total sales for 2022 have now been put at 7.7 billion euros.

The regional association attributes the increase in sales primarily to the good order situation, but also in part to inflation. Thus the enterprises could have passed on price increases for material and parts sometimes to the customers. Domestic business in particular contributed to the increase in sales. According to the VDMA East, the export ratio was just under 50 percent - well below the national average of 82 percent. This is due to the fact that companies tend to be smaller, as Managing Director Köhn explained. Accordingly, the lower personnel and financial resources make foreign activities more difficult.

As in previous years, the strongest trading partner of the mechanical engineering sector was China. In addition, companies had in many cases relied on business with the USA, France and the Czech Republic.