Business: Every fourth mechanical engineer plans to reduce personnel

The weak order situation is also a problem for many mechanical engineers in Germany in the new year. In a survey by the industry association VDMA, a third (34 percent) of the 1,021 member companies surveyed classifies their own order situation with a view to the next six months as “big” or “very big” risk.

The result: Many companies hold back with investments, a quarter is forced to reduce personnel over the next six months.

In total, every third machine and plant manufacturer (35 percent) evaluates their current situation as “bad” or “very bad”. At least every fifth company (22 percent) classifies the situation as “good” or “very good”. But the skepticism – also with a view – predominates.

Association: Politics must strengthen the location of Germany

“The bottom line is that fewer and fewer companies rate the situation than good or very good,” summarizes VDMA chief host Ralph Wiechers. “The location of Germany is under pressure and more of other sales regions is more growth and thus demand for mechanical engineering certificates.”

The future federal government must quickly get reforms on the way. Specifically, the VDMA demands:

An internationally competitive corporate tax rate of a maximum of 25 percent a reduction in bureaucracy and regulating a flexibility of the labor market

“We need incentives for investments and lower costs at the Germany location,” warns Wiechers. “It takes a real upgrade of our location.”

Agency of production awaited

For months, the weakening economy in the industry, which employs a good one million people in Germany alone, has been troubled. The demand in important sales markets such as China and the USA is weak, trade conflicts could expand and the situation still exacerbated.

For 2025, the industry expects the third decline in its annual production as a result: the price-adjusted production of the companies will decrease by a further two percent, according to the latest VDMA forecast.