GENERAL NEWS
VDW flags 12 % order increase
The recovery of the German machinetool industry is taking shape according to VDW( the German Machine Tool Builders’ Association).
“ In the second quarter of 2026, incoming orders were up 12 per cent compared to the same period in the previous year. After a rise of 15 per cent in the first quarter, the first six months have seen an overall growth of 14 per cent. Domestic orders increased by 16 per cent and overseas orders by 13 percent,” confirmed the VDW.
“ Two quarters in a row with a double-digit order increase is an encouraging sign. The slump is behind us and we’ re now on course for better times,” outlined Bernhard Geis, Head of Economics and Statistics, VDW, commenting on the figures.“ However, it’ s too early to give the all-clear. The baseline was low and project business is still making a considerable contribution to growth. There are only limited grounds for talk of a widespread recovery of demand.”
Aviation and defence drives demand
The development continues to vary considerably, according to customer sector / industry.
“ The [ aviation and defence sectors ] appear particularly dynamic. There is also plenty of demand from the electronics industry and medical technology. The situation remains more difficult in metal processing and mechanical engineering, while the biggest challenges continue to be found in the automotive and supplier industry. Here, the share of total sales for the German machine tool industry dropped to 23 per cent in 2025. The largest customer sector remains mechanical engineering with 27 per cent. The aviation industry, on the other hand, has increased significantly. its share rose by
Bernhard Geis, Head of Economics and Statistics, VDW. five percentage points to reach 11 per cent within a period of two years,” added the VDW.
However, the VDW cautioned that“ this recovery has not yet reached production.” In the second quarter, its calculations estimated a six per cent drop on the previous year. In the first six months, production declined by a total of seven per cent to around 5.9 billion euros.
“ However, the improved order situation should make more of an impact over the remaining course of the year,” it stipulated.
Signs of stabilisation
There are also signs of stabilisation when it comes to export activities.
“ In the second quarter, exports were still four per cent lower than the previous year; a far slower decline when compared to the first quarter. As the largest market, the U. S. remains a key pillar of the industry. Deliveries to the U. S. increased by eight per cent in the first six months,” clarified the VDW.
“ In contrast, exports to the second biggest market, namely China, fell by 24 percent. However, companies have recently reported signs of stabilisation and a slight revival of Chinese demand. In view of the intense price competition, the principle of‘ Local for Local’ continues to be a key mantra for German manufacturers with their own on-site production facilities,” it added.
In Europe, German machine tool industry exports fell by a total of six per cent in the first six months of the year according to the VDW.
“ France saw positive developments with plus 25 per cent and a return to its position as the third most important sales market. Positive developments were also seen in
Poland and Czechia. India stayed on course for continued growth and has since become the fourth largest market in the industry,” added the VDW.
Domestic orders are increasing
Domestic German development remains strained, however, with domestic sales at ten per cent below the figure for the previous year in the first six months. However, there are positive signs from the increase in domestic orders.
“ Economic indicators such as the ifo Business Climate Index and the Purchasing Managers’ Index are also currently documenting a better industry outlook. With a drop of two per cent, imports held up better than domestic sales. Japanese and South Korean manufacturers, in particular, increased their sales in Germany. Overall, domestic consumption fell by six per cent, demonstrating that sluggish investment in the German market has not yet been resolved,” explained the VDW.
“ Capacity utilisation recently stabilised at around 75 per cent. At the same time, the process of structural adjustment in the industry continues. Around 60,000 people were employed by companies in June, a good six per cent less than the year before. Production figures are now currently around a third lower than the peak phases of earlier years,” it added.
Bernhard Geis summarised:“ Total order intake has been heading in the right direction for six months now. It is crucial that this leads to a sustainable recovery.” n
https:// vdw. de / en
8 | ismr. net | ISMR October 2026