The machine industry in Germany can finally breathe a sigh of relief. The industry has achieved an increase in orders. However, delays in the supply chain are a concern.
The demand for machines “Made in Germany” is booming after the slump in the corona crisis year 2020.
In the first half of the year, the export-oriented industry posted an increase in orders adjusted for price increases (in real terms) of 29 percent compared to the same period in the previous year, as the mechanical engineering association VDMA announced. “After the sharp drop in orders last year, the current order situation is a blessing,” said VDMA chief economist Ralph Wiechers. “It wasn’t just the notch that was made up for in the second quarter of 2020. The growth often goes beyond that. “
In June alone, orders increased by 53 percent compared to the same month last year. The reluctance of customers during the corona peak has clearly been overcome. “Investments in equipment, machines and services are high on the agenda worldwide,” said Wiechers. 57 percent more orders came from abroad than in June 2020. Orders from within Germany increased by 45 percent.
However, there are concerns about material shortages and delays in global supply chains. According to a recently published Ifo survey among German industrial companies, 70 percent of machine-builders now see their production as being significantly more difficult due to a lack of materials. The VDMA nevertheless continues to assume that mechanical engineering production will increase by 10 percent this year. In the corona crisis year 2020, it collapsed by 12 percent.
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
