Increase in Orders – Recovery in the Machinery Industry Continues

The start of the year in the East German machinery and plant sector was weak, with a decline in orders—but companies are now feeling a stronger tailwind again. In the third quarter of this year, orders were up 18 percent compared to the same period last year, according to the industry association VDMA Ost. A 27 percent increase had already been recorded in the second quarter. Association head Oliver Köhn remains cautious, however. 

Domestic orders rose by 10 percent. In international business, non-eurozone countries provided the strongest growth momentum. Orders from these countries increased by 32 percent, while orders from the eurozone declined by 5 percent. In previous months, the strongest growth had still come from eurozone countries.

“These fluctuations continue to call for a cautious assessment,” Köhn explained. “After a weak start to the year, the East German machinery manufacturing sector made significant ground in the second and third quarters. Nevertheless, we cannot speak of a broad-based upswing. The sources of growth are shifting too rapidly between markets.” 

High Energy Prices and Bureaucratic Costs Weighing on Companies

High energy prices and bureaucratic costs continued to weigh on companies. In addition, high taxes and levies had a negative impact. Politicians are called upon to ensure competitive framework conditions, according to the association’s president.

According to its own figures, the VDMA Regional Association East comprises approximately 350 companies, plants, and branches in the machinery and plant engineering sector in Saxony, Thuringia, Saxony-Anhalt, Berlin, Brandenburg, and Mecklenburg-Western Pomerania. On an annual average in 2025, the industry employed 78,200 people. However, this figure only includes companies with at least 50 employees.