Germany’s manufacturing sector, a key driver of its economy, is grappling with mounting pressures from a sluggish global industrial economy, geopolitical tensions, trade conflicts, and structural changes. Particularly affected are German machine tool manufacturers, who are seeing reduced demand amidst a slowdown in China and shifting priorities in key sectors like automotive.
The latest data from the German Machine Tool Builders’ Association (VDW) paints a concerning picture. Incoming orders fell by 23% in the first three quarters of 2024 compared to the same period in 2023. Dr. Markus Heering, VDW’s managing director, pointed to the automotive industry as a significant source of trouble. “The current order situation remains difficult, and news from the automotive sector is a cause for concern,” he noted.
The German machine tool industry, which once relied heavily on the automotive supply chain for 27% of its production, is feeling the impact of the shift toward electric vehicles (EVs). This transformation has led to reduced investment in machining technology.
Diversification of Demand
Despite challenges, the industry is witnessing growth in other sectors. Mechanical engineering has become the largest customer group, accounting for 30% of demand, encompassing tool and mould-making, agricultural machinery, hydraulics, and pneumatics. Other growing markets include aerospace, electrical engineering, metal production, and sectors like rail vehicle construction, energy technology, and medical technology.
EMO 2025: A Platform for Innovation and Growth
The upcoming EMO 2025 trade fair, celebrating its 50th anniversary, is set to provide a vital platform for manufacturers to showcase innovations in automation, digitalization, and sustainability. Scheduled for September 22-26 in Hanover, the event is expected to draw global attention with over 1,200 exhibitors already confirmed.
Dr. Thorsten Schmidt, CEO of the Heller Group, emphasized EMO’s significance: “For decades, it has been an indispensable place of inspiration and exchange for us. EMO connects people, ideas, and technologies, allowing us to strengthen partnerships and establish new ones while addressing industry challenges and trends.”
Supfina’s Vision for the Future
Among the exhibitors is Supfina, a surface finishing systems manufacturer from Wolfach in Baden-Württemberg. The company is leveraging growth areas such as e-mobility and wind power while prioritizing sustainable production solutions.
Supfina’s managing director, Christoph Siegel, highlighted the importance of innovation in overcoming industry challenges. “By investing in digitalization and automation, we aim to enhance efficiency and strengthen competitiveness,” he said, adding that Germany remains central to the company’s global success.
At EMO 2025, Supfina plans to unveil a new machine concept designed to attract a diverse customer base, showcasing its commitment to shaping the future of production technology.
Outlook
While the structural shifts in key industries like automotive present hurdles, Germany’s machine tool sector is actively diversifying and innovating to navigate these challenges. Events like EMO 2025 offer a beacon of hope and a platform to connect with global partners, ensuring the sector’s resilience and relevance in a rapidly evolving industrial landscape.