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- Mechanical engineering industry expects production to fall by 2% in 2020 - Germany's VDMA
Mechanical engineering industry expects production to fall by 2% in 2020 - Germany's VDMA
Germany's VDMA Engineering Association said that global economic weakness, trade disputes and industrial structural change are weighing on business in mechanical engineering. A rapid upswing is not in sight. However, a good order backlog softens the decline.
The mechanical engineering industry in Germany must continue to adjust to considerable burdens. The trade dispute between the USA and China and a growing protectionism around the globe have a big impact on this industrial branch which counts among the world‘s export leaders. Other factors include the global economic downturn, Brexit and structural change in key customer groups. "All of these factors have already led to concrete burdens for numerous customers of our machines and systems worldwide and they unsettle investors, who are therefore reluctant to invest. A sustainable change for the better is not foreseeable in the near future. We therefore expect a real decline in production of 2 percent in mechanical engineering in 2020," explains VDMA Chief Economist Dr. Ralph Wiechers. The VDMA economists confirm their production forecast for the current year - also down 2% on the previous year.
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