Domestic demand exports boost German machinery and equipment orders in 2010

Germany's machinery and equipment industry continued to rebound after the global downturn. Orders in July this year increased by 48% compared with the same period of last year. The increase in 2010 was attributed to an increase in domestic demand and exports. Germany Trade & Invest will send representatives to participate in the International Manufacturing Technology Show (IMTS) held in Chicago from September 13th to 18th to promote development opportunities for German machinery and equipment companies.

The latest data from the German Sector Machine Tools and Manufacturing Systems (VDMA) show that domestic orders and export orders rose by 38% and 54% respectively compared to the same period last year. The association stated that the average growth rate during May-July 2010 was even higher - an overall increase of 57%, including a 51% increase in domestic orders and a 60% increase in export orders.

Germany's machinery engineering industry achieved a turnover of 161 billion euros in 2009, and it still maintains its strongest position in Europe. The market is expected to continue growing in 2010. Machinery and equipment is one of the largest industries in Germany. This value chain involves more than 6,100 companies and more than 9,300 highly skilled workers. The development of this industry is driven by Germany’s long tradition of engineering, its status as a leader in technology development, and the diversification of industrial bases.

The combination of strong domestic demand and exports has made Germany a very attractive business development location for companies in the industry. Germany's domestic demand for machinery and equipment exceeds 100 billion euros each year. As a result, multinational companies operating in Germany can enter Europe’s largest domestic market and benefit from Germany’s strong export status. Germany is still the main exporter of the global machinery and equipment industry, which accounted for 19.2% of the global machinery equipment trade market. In 2009, it surpassed Japan and the United States. A new report of the World Economic Forum points out that with the world's top infrastructure that is slightly later than Hong Kong, companies can quickly and efficiently reach customers across Europe.

Innovation is also a major element of the industry. The annual R&D expenses exceeded 5 billion euros, making the machinery and equipment industry one of the most innovative industries in Germany. 28% of the world's patents for mechanical engineering are registered by companies headquartered in Germany.

The German Federal Ministry of Foreign Trade and Investment will send industry experts to participate in this year's IMTS to briefly describe the investment opportunities in Germany. The agency will also invite potential partners from the industrial and business communities of Germany and the United States to attend the German Night reception held on September 14.

The German Federal Ministry of Foreign Trade and Investment is the German foreign trade and inward investment promotion agency. It provides consulting services for foreign companies seeking to expand their business activities in the German market. It also provides foreign trade information for German companies that are trying to enter foreign markets. .