After two years of decline, the German machine tool industry expects production to grow by 1% to €13.7bn in 2026. “The fundamental basis for this increase is the expected recovery of domestic demand,” says Franz-Xaver Bernhard, chairman of the VDW (German Machine Tool Builders’ Association).

In 2025, investments were stifled by high costs, insufficient planning security and the absence of economic reform to revitalise Germany as a manufacturing location. In the current year, positive effects are expected from the so-called “special assets” of the German federal government, which have been set up for investments in infrastructure, defence, climate protection, digitalisation and mobility.

More information www.vdw.de