Economy: Mechanical engineering companies are becoming more optimistic - but job cuts are looming
German mechanical engineering companies are looking ahead with more optimism. Some customer industries are picking up - also thanks to the boom in armaments and AI. However, there is bad news for employees.
The German mechanical engineering industry is showing signs of improvement, with 34% of companies surveyed by VDMA reporting a "good" or "very good" current situation, up from 28% in July. However, the industry association VDMA warns of further job losses, with over 30% of companies expecting to cut staff due to uncertain conditions.
Despite some positive trends, particularly in smaller customer industries such as aerospace and medical technology, the sector still faces challenges, including the crisis in the auto industry and high costs in Germany. VDMA expects 57% of companies to see a nominal sales increase this year and 62% next year, but notes that around 100,000 jobs have been lost in the industry since 2019.
Written by urgent.news from Handelsblatt's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
