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.
The moratorium in the Boeing-Airbus tariff dispute is an important signal for transatlantic trade relations. Now the focus must be on a final elimination of the tariffs.
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.
Today marks the official launch of the Industrial Digital Twin Association (IDTA).
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.
Since 2013, negotiations on an EU free trade agreement with India have been frozen. It is high time to revive these talks.
"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 VDMA is calling for a reform of the wage sum rule. The negotiations on the Annual Tax Act would be the appropriate framework for this.
The number of people employed in mechanical and plant engineering has decreased. Short-time work regulations prevent even greater declines.
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.
OPC UA for Machinery and OPC UA for Machine Tools released - umati community tests functionality of both specifications in umati demonstrator
Letter to Dr Gerd Müller, Federal Minister for Economic Cooperation and Development: Polemic against associations and companies is a distorted picture of reality
Joint study by VDMA and McKinsey: Almost 80 percent of companies see the need to cooperate on digital business models
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 training of junior staff continues to play an important role in mechanical engineering. In the current year, the companies have taken on around 85 percent of their trained apprentices.
The US punitive tariffs in the Airbus dispute also affect companies that have nothing to do with the aircraft subsidies. A relaxation of the trade dispute is urgently needed.
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 effects of the corona pandemic have hit the German machine and plant construction industry with force in April.
A further increase in unemployment must be prevented by lowering the financial and legal barriers to new recruitment. This includes the temporary assumption of social contributions.
A tightening of the Foreign Trade Ordinance, which would be negative for the mechanical engineering industry, is off the table for the time being. However, the risk remains.
France has opted for purchase premiums for cars. However, the VDMA president warns against the erroneous path of a subsidy race among the EU states.
The 5th VDMA flash survey shows that almost all machine manufacturers are suffering from the economic consequences of the corona pandemic. But there are also rays of hope.
Up to now, larger medium-sized companies have been clearly disadvantaged in the promotion of research. It is good that the Ministry of Research now wants to make improvements here.
The gradual lifting of compulsory quarantine in Germany for entry and return from EU and EFTA countries is the right thing to do. However, the patchwork of regulations is a great nuisance.
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 corona crisis must not lead to strategic mistakes in the tax system. Companies need a tax system that is conducive to growth.
Companies urgently need open borders in Europe again. Quarantine regulations must also be dropped.
Corona weighs heavily in the mechanical engineering sector: order losses and cancellations are becoming increasingly noticeable. The travel restrictions are also causing the companies major problems.
The EU can celebrate a success of its free trade strategy: the last chunk of the EU-Mexico Free Trade Agreement has been cleared.
An economic revival in the EU and the Green Deal go hand in hand, if the framework conditions are right. The change must be market-based and technology-neutral.
The adjustment of the tax loss carry-forward gives companies some breathing space, but only provides limited help to medium-sized mechanical engineering companies.
The extension of the short-time working benefits meets an important requirement of the VDMA, which will provide noticeable relief and planning security for small and medium-sized companies.
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 EU counter-tariffs on US tariff increases are understandable, but do not help. An agreement is needed to abolish all industrial tariffs.
The EU and 15 other members of the WTO have agreed on an interim solution to resolve trade disputes - China is also involved.
The corona pandemic is also having a strong impact on the labour market. It is therefore necessary to immediately extend the period for which short-time work benefits are paid to 24 months.
The Federal Minister of Finance announces to reform the tax loss carryback. The VDMA supports this plan because it would provide the companies with urgently needed liquidity.
The Hannover Messe will be cancelled in 2020 due to the Covid 19 pandemic. The cancellation is regrettable, but it is the only right decision, emphasises VDMA Executive Director Thilo Brodtmann.
Trade barriers should be removed in the fight against the corona crisis. The increase in US duties on aircraft imports sent the completely wrong signal.
To combat the corona pandemic, the mechanical engineering industry will continue to ensure the operation of vital infrastructure. To this end, supply chains must be maintained.
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.
At the beginning of the year, mechanical engineering in Germany experienced a surprisingly good start. In January, incoming orders rose by 7 percent in real terms compared with the previous year.
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.

Meeting schedule

Meeting schedule VDMA China
Meeting schedule monthly updated.
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Last Events

On July 14th, the 1st VDMA Robotics + Automation and EMINT Joint China Management Meeting was successfully held in the premises of SAIC Volkswagen Automotive Co., Ltd in Shanghai.
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 2020 VDMA China Management Meeting (CMM) of Agricultural Machinery was held online on June 3rd. The web meeting attracted over 60 participants from members in China and abroad.
On May 28, VDMA China Beijing Representative Office held its first offline event since the coronavirus pandemic.
The 28th China Management Meeting for the Construction Equipment Industry was held on April 28th, 2020 online with 31 participants.
The 21st Woodworking Machinery China management meeting was held at Wision Shangping Zhaipei factory in Foshan, Guangzhou.
3rd EMINT CMM was held at RCT Power in Suzhou.
In 2019 the main topic for the CEO Breakfast series was compliance.
The 15th Machine Tool Management Meeting was held at TRUMPF (China) Co., Ltd in Taicang.
Not everything can be predicted but some things are already foreseeable.
This time the CMM took place at the member company Ammann in Shanghai.
Regularly once a year the VDMA sector Mining is organizing a Management Meeting in China (CMM).
Digital Transformation in the focus.
The CMM took place in Weichai Group, a leading Chinese agriculture machinery producer.
On 24th October, VDMA Smart Manufacturing Forum took place during the PTC trade fair in SNIEC Shanghai.
The first VDMA Technical Brainstorming Meeting took place on October 23, 2019.
From September 23 to September 27, 2019 Mr. Thilo Brodtmann, Executive Director of VDMA, visited Beijing and Shanghai.
This time the conference took place at the Kunshan Start-up Factory.
The 2nd VDMA EMINT CMM was held at Manz Suzhou.
The VDMA China Technical Networking Meeting was held in Bosch Rexroth China in Beijing.
More than 20 member companies participated
A total of 70 participants took part in meeting at Ruhlamat in Suzhou.
Over 60 guests came to the joined sector CMM. The key topic is digital engineering.
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.
The CMM took place at the member company MASCHIO-GASPARDO in Qingdao.
14th VDW China Machine Tool Management Meeting was held at Beijing, CIMT 2019.
Claudia Barkowsky
Claudia Barkowsky
Chief Representative
VDMA China
Beijing Representative Office
+86 10 8773 0210 Ext. No. 808
Daniel Yoo
Daniel Yoo
Chief Representative
VDMA China
Shanghai Representative Office
+86 21 6248 8029 Ext. No. 708