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Corona pandemic damages supply chains in mechanical engineering
The mechanical engineering industry is feeling the consequences of the corona pandemic with increasing force. A second current survey by the VDMA, which was answered by 965 member companies, clearly shows this.
"Aid is important - but no state participation without an expiry date".
In the corona crisis, companies need liquidity above all. The planned economic stabilisation fund is an important measure. However, it must not completely override the basic principles of the market economy.
Tariff agreement in the metal industry: A necessity of the hour
A crisis pact instead of a wage war: Employers and IG Metall have set an important signal in North Rhine-Westphalia. Because a long, hard wage fight would be irresponsible in view of the Corona pandemic.
World market for machinery grows slightly in 2019
New machines and plants were in demand worldwide last year as well. However, business already took place under more difficult conditions: The changes in the automotive industry, the trade war between the USA and China and the global rise in protectionism left their mark on the books.
"Goods and commuters still need open borders"
Border closures due to corona must not impede the movement of goods. Commuters must also be allowed to reach their workplaces in other European countries.
“EU industrial strategy must not forget markets and SMEs”
Green, digital and fit for the world market: this is the path the EU Commission wants to take European industry down. Too much state intervention would be the wrong way to go.


The EU and 15 other members of the WTO have agreed on an interim solution to resolve trade disputes - China is also involved.
The corona pandemic is also having a strong impact on the labour market. It is therefore necessary to immediately extend the period for which short-time work benefits are paid to 24 months.
The EU Commission has published recommendations on cross-border activities to ensure the free movement of workers during the Corona crisis.
Lack of orders is a major concern for tool manufacturers - 2020 forecast withdrawn
China largely responsible for growth
The Federal Minister of Finance announces to reform the tax loss carryback. The VDMA supports this plan because it would provide the companies with urgently needed liquidity.
The Hannover Messe will be cancelled in 2020 due to the Covid 19 pandemic. The cancellation is regrettable, but it is the only right decision, emphasises VDMA Executive Director Thilo Brodtmann.
The companies of the VDMA Large Industrial Plant Manufacturers' group performed well in a volatile market environment characterised by strong price and competitive pressure.
Encryption of data and blackmail are among the greatest challenges for cybersecurity; 40 percent of companies are affected by successful attacks via social engineering and phishing; companies must prepare for the worst case scenario; VDMA and VSMA offer comprehensive support
Trade barriers should be removed in the fight against the corona crisis. The increase in US duties on aircraft imports sent the completely wrong signal.
In a fire letter to the Federal Minister of Labour and Social Affairs, Hubertus Heil, VDMA President Carl Martin Welcker spoke out in favour of an immediate extension of the period for which short-time work benefits are paid from 12 to 24 months.
To combat the corona pandemic, the mechanical engineering industry will continue to ensure the operation of vital infrastructure. To this end, supply chains must be maintained.
Urgent request from the Federal Ministry of Health for the production of infection protection equipment
Despite all the uncertainties: In 2019, Thuringia's machine and plant manufacturers passed the 3 billion euro sales mark for the second year in a row - and set a new record.
In December, domestic new orders fell for the ninth time this year and fluctuated quite strongly. From abroad they only increased in July, October, November and December. The overall balance of incoming orders and thus the outlook for the next six months therefore remains clearly negative at -6.9% from January to December 2019.
The corona pandemic is hitting the mechanical engineering sector more and more severely. According to a VDMA flash survey, almost 60 percent of companies are already affected by disruptions in supply chains. Capacity adjustments are following.
The mechanical engineering industry in Germany is experiencing an even more difficult year than expected. The burdens that have already been felt for some time - trade conflicts, global economic weakness, structural change in the automotive industry - are now being compounded by the corona virus with its unforeseeable consequences for the economy as a whole.
Durability, reuse, repair and recycling of products: The EU Commission's Action Plan on Circular Economy advocates the circular reuse and further processing of raw materials and products.
At the beginning of the year, mechanical engineering in Germany experienced a surprisingly good start. In January, incoming orders rose by 7 percent in real terms compared with the previous year.
HANNOVER MESSE 2020 will be postponed to the week of 13 to 17 July 2020. Deutsche Messe AG is thus responding to global developments relating to Covid-19 (coronavirus).
Production volume 2019 increased by 7 percent +++ Export volume of German suppliers grows to 16.7 billion euros
The EU Commission has published a proposal for a European climate law and defined climate neutrality in it. VDMA welcomes the definition, but misses an international dimension in the climate law.
The industry in Germany is under enormous pressure. The corona virus temporarily increases these stresses. The most important task of the federal government is to avoid panic. Support measures for companies must now be implemented quickly.
German construction industry remains on course - USA new top sales market for the valve industry - Long-term expectations remain subdued
Sales up 2 percent - China and USA remain the most important sales markets - stagnation expected for 2020
Thilo Brodtmann: "Mechanical engineering is facing the corona crisis".
Mechanical engineering will face the challenges of the coronavirus. VDMA Executive Director Thilo Brodtmann knows about the strengths of the industry and the association.
Dr. Ralph Wiechers: Incoming Orders January 2020
At the beginning of the year, mechanical engineering in Germany made a surprisingly good start. In January, incoming orders rose by 7 percent in real terms compared with the previous year.
Thilo Brodtmann: "Mechanical engineering is facing the corona crisis".
Mechanical engineering will face the challenges of the coronavirus. VDMA Executive Director Thilo Brodtmann knows about the strengths of the industry and the association.
Dr. Ralph Wiechers: Incoming Orders January 2020
At the beginning of the year, mechanical engineering in Germany made a surprisingly good start. In January, incoming orders rose by 7 percent in real terms compared with the previous year.

Must Reads

The currently spreading "coronavirus" is leading to considerable uncertainty in the personal and professional sphere.
The DAkkS has currently stopped the on-site assessments. These will be replaced by remote assessments.
At present, an organisation Transparenzregister e.V. sends out e-mails in different versions requesting companies to register in the transparency register within 10 days using the link provided in the e-mail.
Figuring at the top of the agenda and the three words on everyone’s lips in Brussels, the Green New Deal positions the new European Commission as a global leader on climate action. VDMA European Office takes a look at the planned measures and their potential impact on the mechanical engineering sector.
On 14 November 2019, the German Bundestag passed the draft bill for the implementation of the 5th EU Money Laundering Directive.
On behalf of 17 associations, the VDMA has sent an open letter to Vice-President Frans Timmermans on the importance of hydrogen and P2X in the fight against climate change on the occasion of the first working day of the new Commission.
The Whistleblower Directive was published in the Official Journal of the European Union on 26 November 2019.
The VDMA has long been fighting for the manufacturer's self-declaration in the marketing of European machine and plant engineering products. In the future, this point of view should be represented even more intensively in countries outside the European Economic Union.
Update: The tax research subsidy is on the home straight. It is scheduled to come into force on 1 January 2020. Find out what the new funding instrument can do for your company.
Climate change is at the top of the agenda: this applies to politics, legislation and business.
With the declaration of the Circular Plastic Alliance, the EU is taking an important step towards more recycling in Europe.
The jury has decided: Four universities will have the chance to be named "Best Machine House 2019" at the award ceremony on 29 October 2019 in Berlin. You are already guaranteed 20,000 euros in prize money.
With this monitoring, the Federal Government would like to obtain a comprehensive evaluation of the state of implementation of human rights due diligence by companies based in Germany.
Joint project of VDA and VDMA Materials Handling and Intralogistics Association +++ First phase of development in final phase and available online
On the occasion of the Day of German Unity, in|pact media Verlag publishes a special publication "Zukunft Deutschland - Innovationen, Technologien, Chancen" in the Handelsblatt.
Cybersecurity needs further legislation to allow the Internal Market to make an effective contribution to digitisation.
The Court of Justice of the European Union ruled on 14.05.2019 that Member States must oblige employers to set up a system to measure daily working time (ECJ, judgment of 14.05.2019 - C-55/18).
Wide range of information and mediation services with demonstrators at Hannover Messe 2019
The Trade Secrets Act provides for far-reaching protection of valuable corporate information. The prerequisite, however, is that companies take measures and document them.
Do Europe and Germany need more state industrial policy to survive between the USA and China? VDMA Vice President Karl Haeusgen sets clear accents in the ZDF programme "Maybritt Illner".
"Exceptional situation requires exceptional measures"
The mechanical engineering sector supports the German government's major aid package. However, the state must now start to develop strategies for the economic recovery.
Maschinenbau meets Young Professionals - Thomas Adermann, DEUTZ AG
Part 2 continues with Thomas Adermann, Lead System Engineer at DEUTZ AG. The young engineer has been with DEUTZ for about three years and works on the E-DEUTZ electrification project of the traditional engine manufacturer.
Tax research promotion: How does the new instrument work?
The Research Allowance Act came into force on 1 January 2020. Here you can find out who benefits from the new tax incentives, what you have to take into account and how the VDMA will support you with this type of subsidy.
Humans – Machines – Progress – The film
Machines improve our lives – on a large and small scale. Whether for our health, food or the many means of transportation that we use; whether we are looking at the ground deep below the sea or from high above – we need machines and people who utilize their skills to make the world a better place to live. That is the aim of mechanical and plant engineering. Humans – Machines – Progress.
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