“Given the many tariff threats and tariff announcements by US President Donald Trump and the resulting great uncertainty, this was an expected dampener,” says VDMA Chief Economist Dr. Johannes Gernandt. Domestic orders were down 4 percent, and orders from abroad were down 7 percent compared to the previous year. The decline from non-Euro countries was particularly strong (minus 13 percent). Orders from Euro partner countries, on the other hand, increased by 11 percent. “In the first four months of the current year, mechanical and plant engineering recorded a slight order increase of 1 percent. Uncertainty remains high worldwide and leads to investment restraint,” summarizes Dr. Gernandt.
In the three-month period from February to April 2025, companies recorded a real order increase of 2 percent compared to the previous year. Domestic business (up 1 percent) and foreign orders (up 2 percent) almost kept pace with each other. Euro countries ordered 11 percent more machines and plants during this period, while non-Euro countries showed a decrease of 1 percent.
“Global uncertainty remains high. It is all the more important that we correctly steer the levers that we can set ourselves in Germany and Europe,” summarizes the VDMA Chief Economist. Hope comes from the recent announcement by the federal government of a tax investment program: expansion of tax research funding, reintroduction of declining balance depreciation, and the binding announcement of a general tax reduction. “All of this is heading in the right direction: increasing technology-neutral incentives for investments. Now it is important to quickly follow up these announcements with actions. The Bundestag and especially the Bundesrat should approve these laws without weakening them. This would be important for our location in Germany and important for mechanical and plant engineering,” emphasizes Dr. Gernandt.
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