The German machinery and plant engineering industry is currently facing major challenges

After companies recorded their first year-over-year increase in orders in April, May saw another significant decline, according to the industry association VDMA. The drop in domestic orders—at 44 percent—was significantly steeper than the decline in orders from overseas markets (16 percent). Orders from eurozone countries fell by 12 percent, while those from non-eurozone countries dropped by 17 percent. To remain competitive in the global market—both now and as demand picks up again in the future—machinery and plant manufacturers must adapt. Digitalization and automation have transformed the industry. The economic transformation toward sustainability is also becoming increasingly important. Environmental protection and resource efficiency are becoming increasingly important and are also increasingly reflected in relevant regulations. The domestic machinery manufacturing sector can only keep pace with intensifying international competition if it recognizes, embraces, and implements key trends and developments. With regard to digitalization, for example, topics such as the integration of machines via the “IoT” (Internet of Things) play an important role. This refers to a network of interconnected objects and devices equipped with sensors, software, and other technologies

are equipped to transmit and receive data to and from other machines and systems. This ensures smart resource efficiency.

The expansion of R&D (Research & Development) and the implementation of decentralization processes point to further paths toward a successful future. Accordingly, great emphasis must be placed on the research and development of new technologies. AI will also play a significant role here. Added to this is the factor of sustainability, which offers many opportunities but is associated with a high (reporting) burden for companies and requires extensive data availability. Such data is still too rare or insufficient, which means that companies must allocate additional resources to collecting ESG-relevant data. The German mechanical and plant engineering sector is known for its high product quality and equally high level of innovation. There is little doubt that at least large parts of the industry will succeed in transforming the current challenges into opportunities over the long term, while reducing costs, conserving resources, and minimizing environmental impact. After all, this is the only way to secure companies’ international competitiveness in the long run.