The German construction machinery manufacturers’ association, VDMA, is publishing its latest research that shows US tariffs are impacting sales. So far 2025 has seen many ups and downs in order intake in machinery and equipment manufacturing according to the VDMA. In the first eight months of 2025, companies recorded growth four times and orders fell four times compared with the previous year.
However, August has disappointed expectations with a decline in orders of 7%, with domestic orders down 5% on the previous year and foreign orders down 8%. There was a very clear spread: while orders from euro partner countries increased by 12%, orders from non-euro countries fell by 15%.
“The unpredictable customs policy of the US has likely led to noticeable restraint in orders,” said VDMA Chief Economist Dr Johannes Gernandt. “This uncertainty will continue to weigh on our industry in the coming months, which is reflected in our forecasts,” he explains. For 2025, the VDMA has lowered its real production forecast from — 2% to -5%. For 2026, VDMA economists expect a slight increase in production of 1% in real terms.
In the less volatile three-month period from June to August 2025, companies recorded a total decline in orders of 2% in real terms. Domestic orders fell by 3%, while foreign orders declined by 2%. Orders from eurozone countries increased by 9%, while non-eurozone countries recorded a decline of 6%. In the first eight months of the current year (January to August 2025), there was still a slight increase in orders of 1% in real terms.
