VDMA President calls for political reforms: flood of regulations is choking companies. Decline in orders threatens mechanical and plant engineering.

VDMA President calls for political reforms: flood of regulations is choking companies. Decline in orders threatens mechanical and plant engineering.

According to a report by www.tichyseinblick.de The President of the Association of German Mechanical and Plant Engineering (VDMA) Karl Haeusgen called for political reforms at a meeting in Berlin. He criticized the bureaucracy and flood of regulations that burden companies in Germany. He also warned of a downturn in the industry, as orders are declining by a double-digit percentage in some cases. The company's order backlog has also fallen.

The current developments in the mechanical engineering industry, particularly the decline in orders and the order backlog, have a significant impact on the market and the financial sector. Since many companies rely on existing orders, the decline in orders and backlog is expected to impact the sales and profits of engineering companies. This could lead to a decline in investment in the industry and impact the stock market prices of engineering companies.

The forecast increase in short-time work and job cuts in the industry are also expected to have an impact on the labor market situation, as this could lead to an increase in unemployment in the industry. In addition, the decline in capacity utilization is likely to impact the profitability of engineering companies as fixed costs are spread across fewer units produced. This could lead to a deterioration in the company's financial indicators, such as the contribution margin.

In addition to the internal developments in the industry, the political demand for faster expansion of renewable energies and reserve power plants could also have an impact on companies' finances. The necessary investments in renewable energies could lead to additional financial burdens for mechanical engineering companies, especially if these investments are not supported by government subsidies.

It is important to monitor these developments and demands and carefully analyze their potential impact on the market and the financial industry. The uncertainty in the engineering industry could also lead to volatility in the financial markets as investors and investors react to these developments.