GENERAL NEWS
VDW flags increase in machine tool orders
Following three difficult years, the machinetool industry in Germany can breathe a first sigh of relief as the VDW( the German Machine Tool Builders’ Association) confirmed recently that incoming orders increased by 15 per cent in the first quarter of 2026. Nevertheless, it said, the situation remains challenging— production, exports and employment continue to fall, while the conflict in the Middle East is leading to greater uncertainty and higher costs, and dampening any spirits to invest.
“ The situation appears to have bottomed out— however, we are nowhere near to reversing the trend. The coming months will show whether the recovery is more permanent,” said Bernhard Geis, Head of Economics and Statistics, VDW.
According to the VDW, overseas and domestic orders are almost equally contributing to the uptick in orders( 14- and 18- per cent respectively). However, the baseline for these calculations is weak, particularly in Germany.
“ Ad-hoc orders and project business are playing a key role, however without
Bernhard Geis, VDW.
any discernible recovery of demand. The service and retrofit businesses continue to have a stabilising effect. At the same time, the dynamic varies widely depending upon the sector: aviation, defence, medical technology and electronics are showing positive development while metal processing and mechanical engineering, as well as automotive and supplier industries, remain weak,” confirmed the VDW.
“ The situation in the German machine tool industry remains tense. Production dropped in the first quarter by 11 per cent to 2.8 billion euros. Domestic sales dropped 13 per cent, performing worse than exports which fell by one tenth. Regionally, the situation is more diverse: the USA is driving growth(+ 8 per cent) while Europe lags considerably behind(-11 per cent). Exports to Asia have fallen by 18 per cent— largely due to the collapse of exports to China(-32 per cent). In light of the very competitive pricing,‘ Local for Local’ is becoming a key mantra for German manufacturers who have their own on-site production. India is
experiencing dynamic growth and has climbed the ranks to become the third largest market,” added the VDW.
With a decline of 8 per cent, outlined the VDW, imports in the first three months also reflected the weaknesses in the German market. They did, however, perform slightly better than domestic sales. Japanese manufacturers, in particular, were able to increase their sales in Germany. Overall, said the VDW, German domestic consumption fell by 10 per cent and“ confirmed the weakness of investment in Germany.”
Corporate capacity utilisation continued to decline to the most recent figure of 73 percentage points. In March, the industry was employing 60,600 people, almost nine percent less than the previous year, confirmed the VDW.
Bernhard Geis concluded:“ The increase in orders in the first quarter is a key indicator. However it doesn’ t give the all-clear. For a steady upward trend, there needs to be greater investment confidence— and more reliable economic conditions.” n
https:// vdw. de / en /
Smart manufacturing for auto industry
Rockwell Automation, Inc. has partnered with the Centre for Automotive Research( CAR) to release a new white paper. The report,‘ Smart Manufacturing in Automotive: Deployment and Impact’, was authored by CAR using comprehensive data from Rockwell Automation to detail how artificial intelligence( AI), machine learning( ML) and automation are reshaping manufacturing across the automotive, tire and battery industries.
“ The research shows that the industry is entering a new phase of adoption. For manufacturers, the question is no longer whether to invest in smart manufacturing, but how quickly and where to apply it,” said Rockwell Automation.
“ Automakers and suppliers already operate with advanced automation in body, paint and welding. The shift now is into areas that have been harder to automate including electronics assembly, validation, production coordination and logistics. At the same time, AI and ML are improving predictive maintenance, inspection accuracy and system performance across existing operations,” it added.
“ The industry has built a strong automation foundation. What is changing now is how manufacturers are using AI and data to manage growing complexity, improve decision-making and create competitive advantage,” said Edgar Faler, Principal Mobility Analyst and Strategy Lead, CAR.“ Those that move faster are starting to see measurable advantages.”
The white paper combines CAR analysis with proprietary data from Rockwell Automation’ s eleventh annual‘ State of Smart Manufacturing’ report. It highlights key drivers accelerating adoption including more complex production environments, ongoing warranty pressures, rising costs and increasing global competition. Automation is also helping to enable onshoring by supporting cost-competitive production in tight labour markets.
“ Manufacturers are already reporting measurable results including up to 50 % reductions in unplanned downtime in select applications, approximately 5 % improvements in overall equipment effectiveness and 5-7 % gains in throughput from real-time production analytics,” says the report.
The findings also point to a growing divide across the industry. Differences in adoption are creating gaps in quality, uptime and productivity, with implications for supplier performance and long-term competitiveness.
The full white paper is available on: bit. ly / 4eCYyQI n
Image: Shutterstock. com. www. cargroup. org
www. rockwellauto mation. com
ISMR July / August 2026 | ismr. net | 7