Machinery / Industrial Parts & Tools

In the first quarter of this year, German machinery exports to China increased by 20.3% year-on-year to 4.9 billion euros, while exports to the United States shrank by 6.8% to 4.7 billion euros. After more than 6 years, China has once again become the most important sales market for German machinery manufacturers.

Ralph Wiechers, chief economist of VDMA, believes that this is not unexpected. As early as 2020, many German companies operating in China will feel a high degree of investment vitality. VDMA's recent business environment survey of member companies also showed that the company's capacity utilization rate in China reached a record high in the spring. On the other hand, given the positive signals from the United States, it remains to be seen whether China can maintain its leading position this year.

In the first quarter of this year, German machinery manufacturing exports fell slightly by 0.8% to 44.2 billion euros, of which exports to the EU fell by 2.4% to 18.5 billion euros, but exports to France increased by 4.7% to 3 billion euros, and exports to Italy increased by 9.7% to 1.9 billion euros. The euro recorded a significant increase. "The high growth in exports to Italy and France is exciting. This is one of our most important European customer countries, but there is still a certain gap from the pre-crisis level." In addition, exports to the Netherlands increased by 0.8% to 1.9 billion euros, and exports to Austria A decrease of 0.2% to 1.7 billion euros. The growth rate of exports to Turkey was second only to China and Italy (up 17.7% to nearly 1 billion euros), continuing the positive trend of the previous year.

As one of the pillar industries of the German economy, the machinery manufacturing industry is regaining its upward trend from the new crown crisis. In June, the production forecast for 2021 was raised for the third time, from an increase of 7% to an increase of 10%.