Mechanical engineering weaker than expected

Annalena Daniel,

Only two percent growth in production

In 2018, the German mechanical engineering industry produced 3% less than forecast by the VDMA. This was due to capacity bottlenecks. Despite the worsening economic outlook, the VDMA is sticking to its forecast of 2% growth for 2019.

2 percent growth in mechanical engineering. © Shutterstock / nd3000

According to preliminary calculations by the Federal Statistical Office, mechanical engineering production in Germany rose by 2% in 2018, although the VDMA had forecast growth of 5%. The two final months proved to be unexpectedly weak, with production falling by 8% in December compared to the same month in the previous year. This was due to capacity bottlenecks.

In October, 28% of machine manufacturers reported a shortage of materials, 27% of companies reported a shortage of labor and 10% reported bottlenecks in their own machinery. An order backlog of 8.5 production months indicates that many orders from 2018 will only be produced in the current year. The VDMA is therefore sticking to its forecast of 2% growth for 2019, even though the economic outlook has deteriorated since September 2018.

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