This was the result of a survey of the 350 members of the VDMA Regional Association East in Berlin, Brandenburg, Mecklenburg-Western Pomerania, Saxony, Saxony-Anhalt and Thuringia. According to the survey, 91 percent of companies rate their economic situation as very good or good. "The business situation of eastern German mechanical engineering companies has continuously improved over the past two years. Due to the growing trade barriers, we had not expected this momentum to continue so emphatically," says Reinhard Pätz, Managing Director of VDMA East.

Improved order situation and capacity utilization
On average, companies have utilized almost 93% of their existing production capacities - better than in the extremely strong years of 2007 and 2008. Large parts of the heterogeneous industry benefited from the good order situation: 74 out of 100 companies achieved a capacity utilization rate of at least 90%. Only in a few cases was this below 80 percent. The companies also recorded a noticeable jump in their order backlog. On average, they can plan for almost six months of production. In addition, 85% of companies registered more or the same number of orders compared to the previous quarter.

The good order situation is also reflected in personnel plans. Almost 57% of companies want to keep the number of employees stable over the next six months - in addition, a good 38% of companies plan to hire new employees. "However, finding suitable skilled workers is easier said than done," emphasizes Pätz. Four out of five companies are currently struggling to fill vacancies. Demographic developments are contributing to this, and some regions are also at a disadvantage due to a comparatively unattractive infrastructure, explains the association's managing director. "However, companies are also complaining about insufficient qualifications and a lack of motivation and willingness to travel on the part of applicants."

Trade dispute not yet leaving its mark
The trade dispute, geopolitical tensions, the uncertain outcome of the Brexit negotiations or German federal politics: all of these risks could dampen further growth impetus and noticeably slow down the success of companies. Nevertheless, the mood in the region is good. Around 15% of companies expect the upward trend to continue over the next three months. A further 78 percent of companies expect business to remain the same. "This confidence is supported by full order books. There also seems to be hope that political reason will ultimately gain the upper hand in the conflicts," says Managing Director Pätz. as