Orders for large plants have led to a positive surprise in the order books of machinery and plant engineering companies at the end of the year. However, the overall result of orders was disappointing, with total orders in 2024 being 8 percent lower in real terms than the previous year. Domestically, companies in mechanical engineering recorded a 13 percent decline in orders in 2024, while orders from abroad decreased by 5 percent. The decline in orders from Euro countries was 9 percent, while non-Euro countries recorded a decrease of 4 percent.
Thus, companies had to record a significant order decrease for the second consecutive year. "The wait for a turnaround continues. We lack dynamism in important sales markets, especially a better mood domestically. The upcoming federal government is called upon to quickly implement extensive measures in favor of the export-oriented industrial SMEs," comments VDMA economic expert Olaf Wortmann on the annual balance of orders.
At least the mechanical engineering sector managed to achieve a slight increase of 1 percent compared to the previous year in December 2024 due to large orders. "This was due to orders from non-Euro regions, which increased by 13 percent. This resulted in a total foreign increase of 9 percent for the reporting month (Euro countries: minus 1 percent). Such fluctuations are not unusual and can be considered positive in themselves. However, they cannot be taken as evidence of a broadly positive development," explains Olaf Wortmann. Especially since the domestic business disappointed once again with a decline in orders of 19 percent compared to the previous year.
In the less volatile, more meaningful three-month period from October to December 2024, companies recorded a decrease in order intake of 5 percent compared to the previous year. The domestic business (minus 7 percent) showed more significant declines than foreign business (minus 4 percent). Euro countries ordered 6 percent fewer machines and plants during this period, while non-Euro countries reduced their orders by 3 percent.
Source: VDMA
