"Germany is currently paralyzed due to a lack of direction and we need to put an end to this situation very quickly," explained VDMA President Bertram Kawlath at the trade fair. He called for tangible reforms and a reduction in bureaucratic hurdles in order to ease the burden on companies. According to a VDMA study, bureaucratic requirements cause costs amounting to 6.3% of turnover for small companies - a figure that is higher than the gross return on sales. The VDMA is therefore calling for a simplification of reporting obligations and a reduction in corporate taxes to a maximum of 25%.

Criticism of the welfare state and labor market regulation

One of the VDMA's central points of criticism concerns the welfare state. "Our welfare state has become too expensive and too cumbersome in international comparison. We need to work more and longer again - if only to compensate for the demographic gap," emphasized Kawlath. He spoke out against higher minimum wages as long as they are not covered by economic value creation. He also criticized the Collective Bargaining Act and warned of increasing bureaucratic hurdles for companies.

The innovative strength of the German and European mechanical and plant engineering sector remains strong enough to successfully combat global climate change, for example. However, there are understandable reasons why investments in mechanical engineering are increasingly being made abroad at the expense of Germany. "We therefore need a real location upgrade - and fast," Kawlath demanded.

Economic situation and forecasts for 2025

Another topic was the economic situation in the industry. Machine production in Germany fell by 7.2% in 2024, after the association had previously forecast a decline of 8%. Capacity utilization stood at 78% in January 2025. VDMA Chief Economist Dr. Ralph Wiechers predicted a slight recovery over the course of the year, with an expected decline in production of 2% for 2025 as a whole. However, the economic risks are high: geopolitical uncertainties, trade conflicts and a declining willingness to invest are complicating the outlook. According to a VDMA survey, 20% of companies are planning to invest less in 2025 than in the previous year, while a third expect no change.

Development of the employment situation

The employment situation was also discussed. In December 2024, 1.025 million people were employed in the sector, which corresponds to a decrease of 0.6% compared to the previous year. While 60% of companies intend to retain their core workforce in the first half of 2025, 25% are planning to cut jobs or extend short-time working.

EU omnibus package as an economic opportunity

The EU also plays a decisive role in the economic framework conditions. The VDMA welcomed the EU Commission's recently presented omnibus package, which includes a reform of sustainability reporting, simplifications to supply chain legislation and adjustments to the_{carbon border adjustment mechanism}(CBAM). "Competitiveness is a top political priority for the Commission and the industry urgently needs this relief. These proposals must not be talked about, but must be implemented," demanded Kawlath.

Importance of the defense industry

The defense industry also played a role at the trade fair. The VDMA supports plans to strengthen European defense capabilities and sees mechanical engineering as an important partner. "The threat posed by Russia to our democratic and free system is real," said Kawlath, emphasizing the need for efficient defence production in Europe. He called for an increase in production capacities and a reduction in procurement processes and costs.

Digitalization and artificial intelligence as drivers of innovation

Another key topic at the Hannover Messe is digitalization. The VDMA presented a study on the use of generative artificial intelligence in mechanical engineering. According to the results, this could increase the profit margin by up to 10.7 percentage points. The focus is also on secure, shared data rooms. However, industrial companies are reluctant to share their data, which is why initiatives such as Manufacturing-X have been launched. Several industry-specific projects have already been launched under this umbrella, including 'Factory-X', 'RoX', 'Wind-X' and 'Fluid4.0'.

Practical example of sustainable production

A practical example of Manufacturing-X will be shown by the VDMA together with T-Systems using a demonstrator in Hall 8 at the Umati stand. The solution enables live measurement of the CO2 footprint of products and documents this in a digital product passport. Production facilities from Asia, Brazil, Germany, Spain and the USA provide real-time data from the manufacturing process.

Hannover Messe as a platform for the future

Hannover Messe 2025 thus remains an important meeting place for industrial innovations and economic policy debates. In addition to overarching topics such as reducing bureaucracy, competitiveness and digitalization, companies are also focusing intensively on technologies such as artificial intelligence and sustainable production in order to meet the challenges of the future.