Still waiting for the turnaround

At the end of the year, orders for large-scale systems provided a positive surprise in the order books of the mechanical and plant engineering sector. However, the overall result was disappointing - in real terms, orders in 2024 were down 8% on the previous year.

Domestic mechanical engineering companies recorded a 13% drop in orders in 2024, with 5% fewer orders coming from abroad. The drop in orders from euro countries amounted to 9%, while non-euro countries recorded a decline of 4%. This means that for the second year in a row, companies had to record a significant drop in orders across the board. "The wait for a turnaround continues. We are lacking momentum in important sales markets, especially a better mood in Germany. The next German government must quickly take extensive measures in the interests of export-oriented industrial SMEs," commented VDMA economic expert Olaf Wortmann on the annual balance of orders.

Nevertheless, the mechanical engineering sector was able to generate slight growth of 1% in real terms in December 2024 compared to the previous year due to large orders. "This was due to orders from non-euro regions, which increased by 13%. This resulted in an overall increase abroad of 9% for the month under review (euro countries: minus 1%). Such fluctuations are not unusual and are positive in themselves. However, they cannot be taken as evidence of a broad-based positive trend," explains Olaf Wortmann. Domestic business was once again disappointing with a 19% drop in orders compared to the previous year.

In the less volatile, more meaningful three-month period from October to December 2024, companies recorded a drop in incoming orders of 5% in real terms compared to the previous year. Domestic business (minus 7%) recorded more significant declines than foreign business (minus 4%). The euro countries ordered 6% fewer machines and systems in this period, while non-euro countries reduced their orders by 3%.

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