The heart of the German economy, the machinery sector, is collapsing

The German machinery sector, considered the backbone of the economy, is experiencing a severe downturn. A recent PwC analysis forecasts a 5.6% revenue drop this year, contributing to a staggering 22% total production decline since the pre-COVID period.

The industry's capacity utilization is at its lowest in five years, exacerbated by rising costs from the energy crisis and regulatory pressures. Insolvency filings have surged by 22%, with job losses reaching 12,000 and potential further cuts by year's end. Expert Bernd Jung warns that "2025 will be a decisive year for machinery and plant engineering," as the government struggles to respond effectively.