Mechanical engineering in BW: Orders rise, optimism remains steamed

Mechanical engineering in BW: Orders rise, optimism remains steamed

In Baden-Württemberg, machine and plant engineering in August 2024 shows a slightly positive signal due to an increase in orders. Overall, the companies had an increase of 16 percent compared to the previous year. But experts warn that this development should not hide the continued problems.

The Association of German Machine and Plant Construction (VDMA) has found that despite the increase in orders from abroad, 30 percent of the domestic orders have fallen by 16 percent. Dietrich Birk, managing director of VDMA Baden-Württemberg, described the current order situation as "unsatisfactory". His concern about the stagnating orders from Europe and the domestic indicates that there is a lack of trust in future investments.

order situation in detail

The situation is also shown in the three-month period from June to August, where the orders were 3 percent above the previous year's level. However, the domestic orders declined by 14 percent. This indicates that many companies in Germany are reluctant to invest while international demand is increasing.

Mechanical engineering in Baden-Württemberg is one of the main pillars of industry and follows vehicle construction as the second largest sector. Around a quarter of the over 1.3 million industrial workers in the region are employed in this industry. The VDMA emphasizes that the increase in orders from abroad is positive, but the structural challenges of the sector cannot be ignored according to information from bnn.de .

The latest developments give a mixed picture that is characterized by unstable economic relaxation. It remains to be seen whether the increasing demand abroad means that the domestic orders also attract or whether the industry must continue to live with this uncertainty.