Machine and plant engineering companies from Germany had to endure noticeable losses in foreign markets in 2024. According to preliminary calculations by the Federal Statistical Office, the export decline was nominally 5.0 percent compared to the previous year. In total, machines and plants worth 199.6 billion euros were exported. Adjusted for prices, machine exports were even 7.1 percent below the previous year's level. This largely corresponded to the production decline in the mechanical engineering sector of (preliminary) real 7.5 percent.
Declines in Key Markets
Exports to the countries of the European Union fell nominally by 8.5 percent in 2024, thus experiencing an above-average decline. Particularly high declines were recorded in Italy, France, and Poland. However, almost all EU countries showed 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 percent last year, after having recorded increases up to and including 2023.
Exports to China, the number two in the export ranking, fell by a cumulative 4.5 percent. "The machinery sector is facing ongoing economic and structural challenges and geopolitical tensions worldwide, which are dampening global demand for machines and equipment. The EU is now primarily called upon to prevent a tariff dispute with the USA, our most important trading partner. Because such a trade war would produce only losers on both sides. Furthermore, the EU must now urgently finalize the free trade agreement with the Mercosur countries and negotiate new agreements," demands VDMA Chief Economist Dr. Ralph Wiechers.
Positive Developments in Selected Markets
Nevertheless, despite the general declines – with the exception of Latin America and the Near and Middle East, all world regions showed negative figures from a German perspective – there were also positive outliers. Specifically, exports to Mexico increased by 5.4 percent in 2024, and exports to India rose by 2.6 percent. The United Kingdom and Switzerland also showed stable development, while exports to the Near and Middle East even increased by double digits. "Where structural reforms are taking effect, investments in infrastructure projects are being made, or increasing economic diversification is being tackled, machine and plant manufacturers can continue to benefit from growing demand. Europe should take a cue from this," emphasizes Dr. Wiechers.
Outlook for 2025
Ongoing geopolitical tensions, trade conflicts, and structural challenges will likely continue to burden machine exports into 2025. "But we hope for stabilization and a tentative recovery of global demand based on initial, still vague signs," says the VDMA Chief Economist. Opportunities are particularly emerging in the areas of digitalization and sustainable technologies. "The integration of digital intelligence, technical brilliance, and resource-efficient practices is crucial to securing competitiveness and opening up new markets," emphasizes Dr. Wiechers.
Demands on Politics
To strengthen the competitiveness of the machine engineering industry, the VDMA demands increased political support, both nationally and internationally. "In addition to a long-overdue improvement in the framework conditions at the domestic location, we urgently need new free trade agreements as well as stronger international cooperation to secure access to international markets on one hand and stabilize supply chains on the other. Furthermore, the conditions for investments in general and for those in research and development in particular must be improved," demands the VDMA Chief Economist.
Data Sheet Machine Foreign Trade 2024
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