German mechanical engineering companies exported goods worth a total of 179.8 billion euros in 2019. According to preliminary figures from the Federal Statistical Office, German machinery exports were down 1.5% on the previous year in real terms. Not adjusted for prices, machinery exports just managed to stagnate. With an export ratio of just under 80 percent, machinery manufacturers from Germany continue to have a strong presence on the global market, but are also dependent on its development.

"In particular, international trade disputes, increasing protectionism and the Brexit impasse as well as the far-reaching structural change in the automotive industry have led to uncertainty and a reluctance to invest in many industries," explained VDMA economic expert Olaf Wortmann. "In view of the current order intake of mechanical engineering companies, a further decline in exports is likely for 2020 as a whole," he predicted.

USA continues to expand its position as the most important single market
Between January and December, exports to the United States, the number one destination for German machinery exporters, rose by a nominal 4.3% to 20.1 billion euros. This means that the USA accounts for 11.2 percent of total German machinery exports. However, momentum slowed significantly over the course of the year. "This is not least due to the fact that the trade dispute between the USA and China has also weakened the industry in the United States," explained Wortmann.

In the first half of 2019, machinery exports to the USA increased by a nominal 7.8%. In the second half of the year, however, growth was only around one percent. Nevertheless, the USA was able to extend its lead over the second-placed sales market, China.

Coronavirus dampens export expectations
German machinery exports to China shrank by a nominal 1.1% to 18.8 billion euros in 2019 as a whole. The People's Republic accounts for 10.5% of total German machinery exports. "In the second half of 2019, growth in Chinese industry stabilized again and there was hope that the trade war could be defused. However, China is now confronted with the coronavirus, the effects of which on global exports cannot yet be estimated," said Wortmann.

France and the UK
Exports to EU countries (85.9 billion euros) remained almost at the previous year's level in 2019. EU countries accounted for a total of 47.8% of all German machinery exports. The most important partner here is traditionally France, number three in the overall export ranking. German machinery exporters recorded an increase of 5.3% to 12.4 billion euros in business with France. The picture is different for exports to the UK. The political wrangling over the terms of Brexit had a significant negative impact on export business with the United Kingdom from the second quarter of 2019. German mechanical engineering exporters recorded a nominal drop in exports of 5.8% to 7.4 billion euros from January to December. as