Domestic demand weakens – Europe supports business
From January to June, domestic demand slumped by 22 percent, while orders from abroad rose by 4 percent. “In the first half of the year, momentum came primarily from Europe, while demand in Germany has yet to pick up,” says Dr. Markus Heering, Managing Director of the German Machine Tool Builders' Association (VDW).
Burden of US tariffs
The ongoing uncertainty resulting from international crises and US tariff policy is dampening willingness to invest. The current tariff rate of 15 percent makes exports to the US considerably more expensive. “Although US industry urgently needs our machines because there are no comparable offerings in the country, small and medium-sized enterprises in particular will not be able to pay the higher prices,” says Heering.
