Mechanical engineering in the East: orders slump by 15 percent

The eastern German mechanical and plant engineering industry is struggling with a significant drop in orders. Orders fell by 15 percent in the first quarter, contrary to the national trend, according to the industry association VDMA Ost. This was mainly due to low demand from abroad. While domestic business increased by 16 percent, orders from other countries fell by 22 percent compared to the same quarter of the previous year, adjusted for price.

"Our members' customers are currently investing primarily in maintenance and efficiency of the status quo," said Oliver Köhn, Managing Director of VDMA East, explaining the latest development. "Major investment decisions are being postponed due to geopolitical uncertainties."

Nationwide order growth of 4 percent

The situation in the industry in the eastern German states is more dramatic than in other regions. Nationwide, the industry reported a 4 percent increase in orders. This was mainly due to large systems and orders, it was reported. By comparison, the volume of orders in Baden-Württemberg increased by 7 percent and in Bavaria by 6 percent. According to the data, the trend was also negative in North Rhine-Westphalia (-10 percent).

The VDMA Regional Association East includes around 350 companies, plants and branches of the mechanical and plant engineering industry in Saxony, Thuringia, Saxony-Anhalt, Berlin, Brandenburg and Mecklenburg-Western Pomerania. On average, the industry provided 78,200 people with work in 2025. However, this only includes companies with at least 50 employees.