Production development precision tools © VDMA

The domestic market was disappointing - driven by the weak mechanical engineering sector and an automotive industry that is itself still looking for direction. Growth impetus from the aviation, medical technology and defense sectors remained sporadic and was not enough to offset the losses.

Export: Stability with a sideways edge

A look abroad did not bring any real relief either. Within Europe, exports fell by 4 percent, while China lost a significant 9 percent. The USA, on the other hand, once again asserted itself as the most important foreign market - despite trade risks - and grew by 2%.

For 2026, the industry expects consolidation at today's level. Growth sounds different. But standing still would be progress after the past few years - provided there are no major geopolitical disruptions.

Bureaucracy as a competitive disadvantage

What slows companies down has long been known. And yet it is not getting any less. Bureaucracy and reporting obligations are tying up resources, while political uncertainty and weak customer industries are delaying or preventing investments. Zecha puts the industry's expectations in a nutshell: "Despite declining production and subdued demand, we are seeing the first signs of stabilization. However, the economy is still struggling with locational disadvantages. It is now crucial that politicians finally ensure improved conditions for business locations - through leaner procedures, less bureaucracy and digitalization that promotes resilience." Or, even more directly: "Companies are in an excellent technological position, but finally need political decisions that create predictability and relief!"

Cutting tools: German exports to the most important supplier countries © VDMA

High costs, subdued demand and increasingly critical raw material markets determined everyday life. Tungsten in particular became a strategic risk.

Tungsten becomes geopolitical

The tighter restrictions in China had a noticeable impact on the industry. Shortages, fragile supply chains and massive cost increases have brought the issue of supply security to the fore. Recycling is no longer a sustainability issue, but industrial policy. Take-back systems and the processing of carbide in Europe are well established - and continue to gain in importance. Zecha puts it emphatically: "We must therefore do everything we can to keep carbide scrap in Europe. Every gram counts! Carbide in Europe secures our sovereignty." For 2026, the companies are counting on a gradual recovery and are hoping for slight sales growth over the course of the year.

Clamping technology: lack of investment

In clamping technology, 2025 fell well short of expectations. Sales fell by a high single-digit percentage, particularly in workpiece clamping, which is directly linked to new machine investments.

Clamping tools: German exports to the most important supplier countries © VDMA

Foreign business also developed negatively. An upward outlier: India with an increase of 10% - among the ten most important sales markets for the first time. A slight upturn is expected for 2026, but another slight decline in sales overall.

Toolmaking: question of existence

Toolmaking has been hit the hardest. Significant declines in production, insolvencies, weak domestic business and competitive pressure coming primarily from China.

Toolmaking: German exports to the most important supplier countries © VDMA

The general conditions are deteriorating along the entire value chain. The fact that the export business remained stable is more of a consolation than a trend.

Meeting places in uncertain times

The European Cutting Tools Conference (ECTC) from May 7 to 9, 2026 in Graz will bring together experts and decision-makers from all over Europe. This will be followed in September by AMB in Stuttgart (15 to 19 September 2026), Germany's leading trade fair for precision tools and machine tools - and perhaps a place that will show whether stabilization can be turned into new beginnings.

The VDMA Precision Tools Association represents the interests of European manufacturers of cutting tools, clamping technology, forming tools and mold making. An industry whose products are indispensable in almost all areas of metal and, in some cases, plastics processing.