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What the future looks like for mechanical engineering: A financial expert analyzes the situation and gives an outlook for the coming year
According to a report from www.tagesschau.de, mechanical engineering is one of the most important industrial sectors in Germany. However, the results for the past year were sobering as global demand for machines faltered. The industry association VDMA recorded a twelve percent decline in orders compared to the previous year. This leads to difficult environmental conditions due to weak global demand, higher interest rates and rising labor costs. The weak growth in Europe, especially in Germany, is particularly alarming. The uncertainty is putting a strain on the market, leading to short-time work and even layoffs among automotive suppliers. Investments are currently flowing into the USA and India, while Germany is weakening as a location. The uncertainty in…
What the future looks like for mechanical engineering: A financial expert analyzes the situation and gives an outlook for the coming year
According to a report from www.tagesschau.de, mechanical engineering is one of the most important industrial sectors in Germany. However, the results for the past year were sobering as global demand for machines faltered. The industry association VDMA recorded a twelve percent decline in orders compared to the previous year. This leads to difficult environmental conditions due to weak global demand, higher interest rates and rising labor costs. The weak growth in Europe, especially in Germany, is particularly alarming. The uncertainty is putting a strain on the market, leading to short-time work and even layoffs among automotive suppliers. Investments are currently flowing into the USA and India, while Germany is weakening as a location.
The uncertainty in the market has also had an impact on the specialist KSB in Frankenthal, with a weakening of the figures in France and Germany. This has led to clear demands on the federal government for robust funding policies and corresponding programs to support the energy transition. At the same time, investments in the USA are being expanded because policies are being made there that support companies.
The outlook for mechanical engineering companies remains skeptical, with no signs of economic recovery. The ifW only predicts an increase in gross domestic product of 0.9 percent and poor prospects for the global economy. The industry is currently hoping for the Growth Opportunities Act, which is currently still being negotiated between the Bundestag and the Bundesrat.
The uncertain situation and the difficult market conditions have an impact on investments and locations. Mechanical engineering in Germany in particular is facing a difficult year, and the industry remains dependent on hopes and more stable conditions.
Read the source article at www.tagesschau.de