Production in mechanical engineering kicks into gear

GEA

The effects of the improved market situation in many important sales regions are leaving their mark on the production of mechanical engineering companies in Germany. According to preliminary figures for the first half of 2017, companies ramped up their production capacities by 2.4 percent (adjusted for price) compared to previous year’s levels.

  • Growth of 2.4 percent in the first half of the year
  • Capacity utilization and employment rates increasing as well
  • VDMA: Economic upturn is by no means a sure-fire success
     

The effects of the improved market situation in many important sales regions are leaving their mark on the production of mechanical engineering companies in Germany. According to preliminary figures for the first half of 2017, companies ramped up their production capacities by 2.4 percent (adjusted for price) compared to previous year’s levels. While some results fluctuate heavily from one month to another, the overall outlook adds up to a very positive picture. “We are well on our way to achieving the forecast production increase of 3 percent in real terms in 2017 as a whole,” said VDMA Chief Economist Dr. Ralph Wiechers in summarizing the mid-year results. This would amount to the largest boost in production since 2011. “The fact that production in the second quarter of 2017 merely stagnated compared to the previous year is to some extent due to working day adjustments. But it also goes to show that economic growth in mechanical engineering is by no means a sure-fire success,” Wiechers emphasized. “We would like to see this momentum – which mainly comes from abroad – also being picked up here at home.”

The steep increase in capacity utilization in German mechanical engineering by 5.4 percent to a total of 87.8 percent recorded in July fits well into the positive picture. The capacity utilization rate thus exceeded the long-term average of 85.9 percent for the first time since 2012. In addition, the headcount in Germany increased by 3,000 to some 1.012 million employees in May (more recent data is not yet available). 

Do you have any questions? Dr. Ralph Wiechers, VDMA Chief Economist, Phone +49 69 6603 1371, ralph.wiechers@vdma.org would be delighted to answer them.

“We would like to see this momentum – which mainly comes from abroad – also being picked up here at home.”