German manufacturing sector investing in more advanced technologies

VDMA reports investment in manufacturing capabilities is growing in Germany to bring about more customized designs and new services.


German mechanical engineering has long been at the heart of the country’s economy and is renowned for its innovation, performance and reliability. The latest VDMA figures show that the industry generates around 30% of the country’s GDP and employs over 1 million people in approximately 6,000 companies. Their combined EUR 200 billion annual turnover makes Germany one of the world’s largest producers of machinery and plants: one in 10 mechanical engineering products are produced in Germany, making the country the world export champion for the sector.

However, the industry is not resting on its laurels: big investments are being made in industrial automation and Germany is pushing to establish itself as a leading provider of cyber-physical systems and advanced manufacturing solutions – so-called Industry 4.0.

“Industry 4.0 will make production processes more flexible, and enable the development of highly customized products as well as the integration of new services into the value-creation process,” notes Jerome Hull, industry expert at Germany Trade & Invest. BITKOM estimates that Industry 4.0 could generate growth of approximately EUR 79 billion in six sectors in Germany by 2025.

Germany is also the world leader for industrial energy efficiency and support programs, according to the American Council for an Energy-Efficient Economy (ACEEE). Thirty-five percent of German manufacturers consider energy efficiency in itself a reason to invest and not just a welcome side effect of purchasing new equipment, a new University of Stuttgart survey shows.

Those considering expanding their business to take advantage of the numerous location benefits that Germany offers can meet Germany Trade & Invest’s team of mechanical engineering industry experts at IMTS in Chicago from September 8 to 13. The team will be on hand to highlight investment opportunities as well as these latest trends.