VDMA: Maschinenbau rechnet mit Regierung ab - „Fassungslos“

Düsseldorf - The German machinery industry is reaching its breaking point, according to VDMA, the industry's trade association. At a recent summit in Berlin, VDMA President Bertram Kawlath launched a scathing attack on the federal government, accusing it of internal strife and bureaucratic stagnation that threatens Germany as an industrial hub.

Kawlath declared, "I am speechless," referring to the decline of the location. His complaints are numerous, including a blockade on labor market reforms, excessive bureaucracy, and a high tax burden. A VDMA commissioned study suggests that even an additional hour of work per week could boost economic performance by €549 billion in ten years, and create 120,000 jobs.

The association also called for more decisive action against unfair competition from China. European leaders must "defend ourselves adequately," Kawlath emphasized. The industry predicts a two percent production decline this year, but hopes for a three percent increase in 2027 driven by foreign orders. However, domestic demand is stagnant, highlighting the weakness of the German location.

Despite the harsh criticism, Kawlath ended on a conciliatory note, stating, "Germany is not a rehabilitation case. Germany is a design project. But those who want to shape it must act." The German industry, which employs over a million people, has been grappling with dwindling orders for some time. The fourth consecutive year of production decline is now expected by 2026.

The association expects a recovery to begin in 2026, contingent on a robust global economy, increased equipment investments, and state-led stimulus measures in Germany.