The warning of "deindustrialization" sounds. Currently, Germany's machinery manufacturing industry is facing severe challenges, with sentiment continuing to deteriorate. Nearly 60% of surveyed decision-makers expect the German economy to weaken in the next twelve months, setting a negative record since 2014. Geopolitical risks, locational disadvantages, and sluggish production have fueled growing skepticism among machinery and equipment manufacturers.

Bernd Jung, an industry expert at PwC, points out that global risks such as punitive tariffs and regional conflicts play a significant role. However, corporate executives are now more pessimistic than during the COVID-19 pandemic, reflecting deeper structural issues such as rising location costs, declining output, and innovation barriers in future themes like sustainability and digitalization. Rising energy and labor costs, as well as the regulatory environment, have also triggered deeper fears, stifling innovation. Currently, many companies are operating below average capacity utilization, at just 84.1%.

For some time, Germany's machinery manufacturing industry has been in a weak state. Although orders increased in August, this was considered merely an "upward outlier," and experts generally believe the trough in new orders has yet to arrive. The plight of Germany's machinery manufacturing industry has sounded the alarm for "deindustrialization" in the German economy.