Mechanical and plant engineering 2020

Andreas Mühlbauer,

Double-digit decline in exports

The global coronavirus crisis has also led to significant export losses for machine and plant manufacturers.

German machinery exports in 2020. © Federal Statistical Office, VDMA

In 2020, machinery and equipment worth €160 billion was exported from Germany and €67 billion was imported. This means that exports were 12.0% and imports 13.4% lower than in 2019, according to preliminary figures from the Federal Statistical Office. "Machinery exporters from Germany thus recorded the highest year-on-year declines since the financial and economic crisis in 2009," says VDMA Chief Economist Dr. Ralph Wiechers.

Strongest decline in exports in the second quarter

A look at the quarterly figures for 2020 shows that Machinery exports still recorded a comparatively moderate year-on-year decline of 5.1% in the first quarter. In the second quarter, 22% fewer machines and systems were exported before a gradual improvement set in: The third and fourth quarters saw smaller declines of 12.4 percent, and 8.2 percent respectively.

"The second quarter of 2020 was the peak of the coronavirus crisis for machinery and plant manufacturers. Many companies were confronted with unexpectedly severe shortfalls on the supply and demand side. Supply chains were temporarily interrupted and customers postponed or even canceled orders at short notice. However, the developments of the last few months of last year are encouraging: the export year 2021 will be better and bring growth, even if the pre-crisis level will not yet be reached again," explains Wiechers.

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"The economic recovery in China began in the second quarter of 2020. The positive momentum also made itself felt in companies' order books shortly afterwards," says the VDMA chief economist.

Not all specialist sectors were equally affected by the double-digit decline in exports. Machine tool manufacturers recorded a sharp drop of 29.4%. In contrast, agricultural machinery increased exports to the world by 1% compared to 2019.

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