Markets & Economy - vdma.org

On behalf of VDMA, the Global Trade Allert Team of the University of St. Gallen has investigated the impact of protectionism on European machinery exports. Around 80% of EU machinery exports are hampered by government trade intervention.

The Economics and Statistics department provides you with all industry-relevant economic and market information. Benefit from our expertise and use our statistics as a basis for smart business decisions.

VDMA Foreign Trade supports you and your export business. We prepare topics relevant to mechanical engineering for you: up-to-date and easy to understand.

The VDMA Foreign Trade team supports VDMA member companies in the internationalization of mechanical and plant engineering. We provide you with practical support in all matters relating to foreign business.

A new interactive web report provides a concise overview of the most important country-specific macroeconomic data - including forecasts from the International Monetary Fund (IMF) and information on the business environment.

Despite the economic slowdown, many companies are optimistic. They have every reason to be - after all, they have a sizeable order backlog and supply chains that are slowly easing. Although energy supplies remain problematic, production stoppages have so far been largely avoided. Cancellations are also the exception.

Germany and the EU are called upon to intensify cooperation with allies like Japan. There is still considerable potential for mechanical and plant engineering in Japan.

According to provisional figures, machinery exports from Germany rose by a nominal 17.8 percent year-on-year in January 2023.

In 2022, machinery and equipment sold worldwide was worth almost 3.4 trillion euros. In euro terms, this is around 12 percent more than a year earlier. In the TOP 10 country ranking, there were changes from seventh place onwards.

The EU is competing with China and the USA for market access in the Mercosur countries. The EU's free trade agreement with Mercosur, which has already been agreed, is a great opportunity for both regions.

Advancing digitalization, the development of climate-friendly technologies and the mobility revolution - the machinery and equipment manufacturing industry is facing enormous challenges. Securing the availability of skilled workers is becoming a mammoth task.

Latin America is gradually recovering after the pandemic triggered a deep slump in GDP and also in machinery demand. The chart pack offers facts and figures on the market.

There are many reasons for European companies to think about diversification of supply chains, production sites and sales markets. Indonesia is increasingly coming into focus in the machinery and plant engineering sector.

Overview - Events on the topic of reporting obligations for work assignments in Europe

In a choppy macroeconomic environment, mechanical engineering output in many countries remained on growth track in 2022.

For the first time, VDMA held a members' meeting in Cairo. Participants discussed market situation and current challenges in Egypt.

What are the effects of the IRA on the American market and what are the consequences for the European mechanical and plant engineering industry? Current VDMA publication provides an overview.

Some Inflation Reduction Act tax incentives require that all subcontractors use U.S. apprentices on the jobsite. This is impossible for many VDMA member companies.

Trade shows are finally underway again, and visa practices are hampering the success of the events. Foreign visitors and exhibitors report problems obtaining visas.

The machinery and plant engineering sector continues to support the economic sanctions against Russia. The question is whether they were extensive enough and enforced with the necessary political consistency. At the same time, they show some serious shortcomings in terms of craftsmanship: Errors in the lists of goods or the lack of 'blacklisting' of many Russian defense companies.

The EU-Commission has presented the trade agreement with New Zealand for ratification. VDMA welcomes this step and hopes that this will soon also be the case for other EU trade agreements.

The decline in exports will continue in 2023.

In order to support the Ukrainian economy, the Federal Republic of Germany is maintaining its investment guarantees for Ukraine. This means that private-sector investment projects can continue to be made possible.

On 23.3.2023 industry experts will again discuss the oil & gas markets incl. climate neutral solutions in D-A-CH, Europe and overseas. Hydrogen is the focus topic. Networking at the dinner before. Language: EN

The VDMA regularly produces data sheets with structural data for the mechanical engineering industry. Currently, the statistics for the USA, Canada and Mexico for the year 2021 have been published. These are available in our statistics database.

Study provides an overview of current salary structures for 80 key positions in both manufacturing and business-related services.

The USA further strengthened its position as the most important export market for mechanical and plant engineering last year. Exports increased by a total of 11 billion euros to a good 192 billion euros. Adjusted for prices, a small minus remained in the books.

The same exercise every year: As part of the preparation of the management report, an overview of the overall economic development and the situation of the industry usually has to be provided.

High raw material prices have given the Kazakh economy a powerful cash injection. Machinery exports from Germany reach new highs.

Schengen visa may allow short-term deployment of non-EU service technicians in Germany.

The quarterly report "Machinery & Equipment in China" contains relevant key figures such as production, sales, profit and investment development about the local machinery industry as well as important customer industries in China.

ICS 2 - The import processing requirements that will apply as of 01.03.2023 will bring changes for declarants. Adjustments to operational processes are required here.

Members bring their questions to the virtual talk with the VDMA Tax, Legal and Foreign Trade departments. New series of events starting in March 2023.

The overall economic situation and international supply chain problems did not make things easy for companies in the machinery and plant engineering industry last year. The 2022 annual financial statements bear a clear minus. Demand for capital goods slumped noticeably in the fourth quarter of 2022 in particular.

MATO GmbH & Co. KG and VDMA made it clear to MEP Udo Bullmann (S&D) how export-oriented companies depend on a well-functioning Internal Market and Free Trade Agreements.

Web event on March 29, 2023 from 10 to 11 am. Cooperation of AHK Italy with VDMA.

The German government has announced a real reform of export credit guarantees (Hermes cover) for July 2023. A forfaiting guarantee will make the purchase of Hermes-covered export receivables more attractive for banks.

Until mid-2023, exporters can still save money and submit Hermes applications for contract values up to 5 million euros via the Click&Cover application process at no cost. Contracts with price escalation clauses can also be covered.

Ukraine's economic performance has collapsed catastrophically in 2022. How it will continue depends solely on the course of the war.

Updated edition 2023 is available.

In order to implement the Directive, the German legislator has made amendments to the Employee Posting Act (AEntG) - in particular with regard to remuneration and the granting of working conditions.

The EU-Commission called on 17 EU Member States to comply with the EU Posting of Workers Enforcement Directive.

The U.S. Census Bureau's "Related-Parties Trade" statistics provide information on U.S. imports and exports with related companies. According to this, more than half of U.S. machinery imports came from related parties in 2021. In the case of Mexico, the figure was as high as nearly 80%.

The basic agreement between the EU and the Mercosur states on a free trade agreement was reached more than three years ago but has still not been implemented. Time is pressing; there is pent-up demand for closer cooperation, especially in Argentina and Brazil.

A long-standing demand of the VDMA is being implemented: the reform of export financing finally brings the possibility to sell Hermes-covered export receivables to banks. This means that, for the first time, there is small ticket export financing that mechanical engineering companies can actively market.

Cooperation with Africa is to be geared more closely to the countries' economic interests. This is the right approach, because good economic conditions are the basis for Africa's sustainable, social and ecological development. To achieve this, the German government now needs a unified interministerial Africa strategy.

The new regulations on foreign trade statistics entail changes for information providers as of the reporting month January 2023. Adjustments to the operational systems are required here.

The Regulation on third country subsidies that distort the Internal Market entered into force on 12 January 2023. What does this mean for our member companies?

VDMA met with MEPs in Strasbourg to promote free trade. The main topics of discussion were the Inflation Reduction Act, trade relations with China and the Free Trade Agreement with Mercosur.

The VDMA has called for tax-based research funding with great commitment, and it was introduced in 2020. The research allowance has developed successfully so far, with mechanical engineering being the strongest user. At the same time, there is a need for optimization in order to make the research allowance even better known and to expand its success.