VDW flags 12% order increase

The recovery of the German machine tool industry is taking shape, according to VDW (the German Machine Tool Builders’ Association).

“In the second quarter of 2026, incoming orders were up 12 per cent compared to the same period in the previous year. After a rise of 15 per cent in the first quarter, the first six months have seen an overall growth of 14 per cent. Domestic orders increased by 16 per cent and overseas orders by 13 per cent,” confirmed the VDW.

“Two quarters in a row with a double-digit order increase is an encouraging sign. The slump is behind us and we’re now on course for better times,” outlined Bernhard Geis, Head of Economics and Statistics, VDW, commenting on the figures. “However, it’s too early to give the all-clear. The baseline was low and project business is still making a considerable contribution to growth. There are only limited grounds for talk of a widespread recovery of demand.”

Aviation and defence drives demand

The development continues to vary considerably, according to customer sector/industry.

“The [aviation and defence sectors] appear particularly dynamic. There is also plenty of demand from the electronics industry and medical technology. The situation remains more difficult in metal processing and mechanical engineering, while the biggest challenges continue to be found in the automotive and supplier industry. Here, the share of total sales for the German machine tool industry dropped to 23 per cent in 2025. The largest customer sector remains mechanical engineering with 27 per cent. The aviation industry, on the other hand, has increased significantly. its share rose by five percentage points to reach 11 per cent within a period of two years,” added the VDW.

However, the VDW cautioned that “this recovery has not yet reached production.” In the second quarter, its calculations estimated a six per cent drop on the previous year. In the first six months, production declined by a total of seven per cent to around 5.9 billion euros.

“However, the improved order situation should make more of an impact over the remaining course of the year,” it stipulated.

Signs of stabilisation

There are also signs of stabilisation when it comes to export activities.

To read the rest of this article in the October 2026 issue of ISMR, see https://joom.ag/pDfd/p8