Published by Global Banking & Finance Review®
Posted on December 10, 2024
1 min readLast updated: January 27, 2026
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VDMA forecasts a 2% decline in German engineering production for 2025, with potential job cuts due to decreasing orders and global competition.
(Reuters) - Germany's VDMA engineering association said on Tuesday it still expected production in the sector to fall next year, although at a slower pace than in 2024, and flagged the risk of slight job cuts as sinking orders have hindered capacity utilization.
The VDMA said it anticipated production would decline by 8% and 2% in real terms in 2024 and 2025 respectively, unchanged from its previous forecast, as it warned of intensifying competition in China and new challenges in the U.S. from Trump's presidency.
"A growing number of companies is no longer able to adequately cushion production through their order backlogs in the face of sharply declining orders," VDMA President Bertram Kawlath said in a statement.
Kawlath added that falling interest rates are likely to benefit consumption as well as boost investment and trigger an economic recovery next year, but that he expected no dramatic upturn as conflicts, protectionism and structural breaks weigh on global economy.
(Reporting by Tom Kaeckenhoff, writing by Linda Pasquini, editing by Madeline Chambers)
The article discusses the expected decline in German engineering production in 2025 and the associated risks of job cuts.
The VDMA highlights intensifying competition from China and new challenges from the U.S. as key issues.
Falling interest rates could boost consumption and investment, potentially leading to an economic recovery.
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