Mechanical engineering – more orders – economy

The demand for machines of German production is booming again after the collapse of the corona crisis in the year 2020. In the first half of the year, the particularly export-oriented industry recorded an increase in orders corrected for increases in (actual) prices by 29% compared to the same period of the previous year, as announced on Thursday by the mechanical engineering association VDMA. “After the sharp drop in orders last year, the current order situation is a blessing,” said Ralph Wiechers, chief economist at VDMA. “It wasn’t just possible to catch up in the second quarter of 2020. Growth often goes beyond that.” In June alone, orders were up 53% from the same month last year. Customer reluctance during the peak of the corona pandemic has clearly been overcome, according to the VDMA. “Investments in equipment, machinery and services are among the global priorities,” said Wiechers. 57% more orders came from abroad compared to June 2020. Orders from Germany increased by 45%. However, material shortages and delays in global supply chains are cause for concern. According to a recent Ifo survey of German industrial companies, 70% of machine builders now consider their production to be significantly more difficult due to a lack of materials. The VDMA nevertheless continues to assume that production of mechanical engineering will increase by 10 percent this year. In the year of corona crisis 2020, it collapsed by 12%.

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