For material handling and intralogistics suppliers in Germany, the 2025 financial year shows a 7 percent decline in production volume. This brings the value down to €25.8 billion, reports the VDMAMaterials Handling and Intralogistics Association. No turnaround is yet in sight for 2026.
Weak demand in key industries and a reluctance to invest are slowing down manufacturers of materials handling and intralogistics equipment. Production volumes and exports declined in 2025. "Manufacturers," says Jan Drömer, Chairman of the VDMA's specialist association, "are struggling primarily with the weak industrial economy, declining demand in key sectors such as the automotive industry, but also with geopolitical uncertainties and changing competitiveconditions on the international stage."
Declining demand
Demand in some product areas has declined significantly. While the first half of 2025 remained relatively stable compared to the previous year, production decreased in the second half. "Several investments were postponed, but structural demand remains high."
J. Drömer
"Therefore, we expect a recovery no later than 2027," says Drömer, Chairman of the VDMA trade association and CIO of Neura Mobile Robots GmbH. Since no short-term growth is expected due to current conditions, the trade association anticipates stable development and a renewed production volume of €25.8 billion for 2026.
In heavy seas
VDMA President Bertram Kawlath, in a recent interview with WELT am Sonntag, spoke about the "rough seas" in which the German and European mechanical and plant engineering sectors find themselves due to difficulties such as US tariffs and China's increasingly aggressive industrial policy: "People close their eyes to the competition and hope that it disappears - but it hasn't."
