In the fourth quarter of 2023, incoming orders in the German machine tool industry fell by 17% compared to the same period of the previous year. Domestic orders fell by 20%, while orders from abroad decreased by 15%. In 2023, demand fell by 11% in nominal terms overall. Domestic orders fell by 14% and foreign orders by 9%. In real terms, the decline in demand for the year as a whole amounted to 16%.
"Our industry lacks the tailwind from the global economy. In most important markets, the international purchasing managers' index signals a weak economy," comments Dr. Markus Heering, Executive Director of the German Machine Tool Builders' Association (VDW). The only exceptions are India and Mexico, which could provide impetus.
"Our industry is lacking the tailwind from the global economy," comments Dr. Markus Heering
Domestic demand also continues to suffer from uncertain geopolitical and economic conditions as well as high interest rates and energy prices. "Small and medium-sized companies in particular are holding back on investments. Germany and the eurozone will remain weak in the second half of the year. This also applies to the important Chinese market, whereas North America is supporting business," continued Heering.
(Graphic: Incoming orders in the German machine tool industry)
The German machine tool industry is one of the five largest branches of mechanical engineering. It supplies production technology for metalworking to all branches of industry and makes a significant contribution to innovation and productivity progress in the industry. Due to its absolute key position in industrial production, its development is an important indicator of the economic dynamics of the entire industry.
