Bavarian mechanical engineering companies cautiously optimistic

Industry - Bavarian mechanical engineering companies cautiously optimistic

The machinery and plant construction industry in Bavaria was able to show solid revenue growth in the past few months. The order intake baseline seems to have been reached, revenues rose, according to the VDMA Bavaria branch office in Munich. For the coming months, a cautious optimism prevails: every fourth member company expects an improvement in business situation, every fifth expects a worsening.

Two thirds of the machines and plants built in Bavaria are exported. The largest individual market is the USA - the trend is rising. The America boom should remain unbroken for foreseeable future, the association announced: "Bavarian machinery manufacturing companies assess sales opportunities in North America more positively than in any other world region."

However, bureaucracy in Germany and the labor shortage are noticeably slowing down the industry. Bureaucracy is now causing companies additional costs of up to 3 percent of total sales. The modernization program of the state government is a step in the right direction, but it needs to be implemented more quickly, said VDMA-CEO Bertram Kawlath.

The machinery and plant construction industry is the largest industrial employer in Bavaria with 228,000 employees. Every second company complains about sales losses due to a lack of labor, the association head said. Therefore, intelligent regulation of immigration and more women in engineering and machine building professions are necessary. The Bavarian machinery and plant construction industry generated a turnover of 64.5 billion Euros in the previous year and thus about a quarter of the German machinery building turnover.

1. Despite the solid revenue growth in Munich, the VDMA Bavaria branch office warned of a potential slump in orders due to the economic situation, indicating that the industry might be approaching the "bottom of the valley."
2. The positive sales opportunities in the USA have contributed to a significant increase in incoming orders for mechanical engineering companies located in Bavaria's plant engineering sector.
3. The VDMA-CEO Bertram Kawlath strongly advocated for faster implementation of the modernization program by the state government, as bureaucracy and labor shortage have negatively impacted the industry in Bavaria and resulted in additional costs of up to 3% of total sales.
4. The Bavarian machinery and plant construction industry, which is the largest industrial employer in the region with 228,000 employees, is heavily reliant on exports, with two-thirds of its productions being exported to various countries, including the USA.
5. As the industry faces challenges such as labor shortages, mechanical engineering companies in Bavaria's plant engineering sector are calling for intelligent regulation of immigration and an increased number of women in engineering and machine building professions to help address the employment issue and promote growth.

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