The German Mechanical Engineering Association (VDMA) has established two offices in China, one in Beijing and one in Shanghai, which underlines the importance of the Chinese market for producers of machines, plants and equipment: China is the second most important export market outside the European Union. The VDMA offices in China serve as bridgeheads in Chinese mechanical engineering, local administration and important Chinese customer sectors. The offices in Beijing and Shanghai are the main point of contact for VDMA members with questions about the Chinese market, local network, technical requirements, and mechanical-engineering-specific topics in general.
The expansion of the training premium is an encouraging signal for more companies to train many young people despite the Corona pandemic. The VDMA points out that vocational orientation in schools and career guidance by employment agencies in particular should be intensified in order to strengthen vocational training.
In January 2021, the machinery and plant engineering sector recorded a drop in orders of 10 percent in real terms. This came as little surprise, as unusually high orders for large-scale plant business had dominated the picture in the same month of the previous year.
From the VDMA's point of view, the annual report of the Expert Commission on Research and Innovation (EFI) clearly shows that there is still room for improvement in terms of open-topic and broadly effective funding instruments.
Even in the second year of the pandemic, the machinery and plant engineering sector will not reach the pre-Corona sales level. The VDMA therefore supports the approach of the employers' associations to consider wage increases next year at the earliest.
The global Corona crisis has also led to high export losses for machinery and plant manufacturers. In 2020, machinery and equipment worth 160 billion euros was exported from Germany - 12 percent less than in the previous year.
"Made in China 2025" leads to intensified competitive pressure in mechanical and plant engineering. A new study examines various scenarios up to the year 2030. Companies in Europe can continue to benefit from the upswing in the People's Republic, but there is a growing danger of falling exports to the Far East.
The picture has changed for the machinery and plant manufacturers in China, with business estimates positive again for the first time since autumn 2018. However, travel restrictions remain a major obstacle.
One year after the conditions for awarding contracts for local industrial and agricultural mobile radio networks came into force, almost 90 applications have already been received by the Federal Network Agency.
The transatlantic dispute over subsidies to Airbus and Boeing is also a burden to companies in the mechanical engineering sector. A negotiated solution still must be found. Therefore, the VDMA calls for a constructive dialogue between the EU and the USA.
The election victory of Joe Biden is good news for transatlantic relations. The mechanical and plant engineering industry expects a more predictable policy from the new US president, which will also involve the transatlantic partners in Europe more closely again.
The Mechanical Engineering Industry in Germany is gradually recovering from the consequences of the corona crisis. After the seasonal setback in August, order intake returned to a positive picture in September 2020.
Hydrogen and e-fuels are an important contribution to the climate protection strategy - Draft law for the national implementation of the Renewable Energy Directive (RED II) is not ambitious enough and needs to be revised.
The ongoing subsidy dispute between the EU and the USA is also burdening companies in the mechanical engineering sector. A constructive dialogue is therefore needed quickly to abolish punitive tariffs.
With "20 concrete proposals", the Federal Minister of Economics wants to advance climate protection and strengthen economic power. Peter Altmaier's approach is important, but does not replace concrete policy.
The corona pandemic is causing great reluctance to invest in mechanical and plant engineering. Production is also suffering as a result in the second half of the year. For 2021, the VDMA expects a small production increase of 2 percent.
During the pandemic, the state must enforce hygiene regulations and, where necessary, make improvements. However, a general obligation to wear masks at the workplace would not make sense in mechanical engineering.
The Covid 19 pandemic has caused a severe economic crisis. Any form of retaliatory tariffs will only exacerbate the situation. It is therefore important that transatlantic trade relations be relaxed, not escalated.
The EU Parliament has retroactively extended the transitional periods for the installation and sale of engines which belong to the emission stage V. This extension of the deadline offers machine manufacturers an urgently needed planning security.
Free trade and open borders are indispensable for prosperity and the preservation of many jobs in Germany and Europe. This applies all the more in times when protectionists are increasingly trying to restrict international trade.
From January 2021, almost every manufacturer of machinery and equipment in Europe will have to enter information on chemical substances used into the database (SCIP) of the European Chemicals Agency (ECHA).
By tightening the Foreign Trade and Payments Act, the Federal Government is sending out a completely wrong signal. If Germany wants to maintain its industrial base in the long term, foreign capital must flow into the country.
The corona pandemic and the lockdown to contain it have hit society and industry hard - with hitherto unforeseeable consequences. In particular, companies acutely need sufficient liquidity to cope with the direct and indirect consequences of the pandemic and to bridge the period until the economy picks up again.
The mechanical engineering industry is increasingly feeling the effects of the corona pandemic; orders are reduced or even cancelled. According to the VDMA flash survey, many companies are making capacity adjustments.
The measures to combat the corona pandemic must be implemented with consistence. This applies in particular to quarantine rules for persons entering Germany for professional reasons. There must be a smooth, uniform European procedure in this field.
According to the latest VDMA survey, the effects of the corona pandemic in China are less severe than was expected only recently. Nevertheless, the mechanical engineering industry is expecting a sharp drop in sales.
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.
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.
On 18th of November 2020, VDMA will be the main association sponsor for the 3rd Flagship Industrie 4.0 B2B event organised by GMECS. VDMA, the German Engineering Association, shaped the term Industrie 4.0. Today VDMA and its VDMA Forum Industrie 4.0 are constantly driving it forward, one of our main goals is to promote German Industry 4.0 products and solutions to this major market.
The 26th China Management Meeting for the Construction Equipment and Building Material Machinery Industry was held on May 7th, 2019 in Pinghu, Zhejiang Province upon the kind invitation of member company Wacker Neuson.
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