Bavarian mechanical engineering sector hits record revenues

Bavaria's mechanical engineering sector has achieved unprecedented revenue levels, reaching 70 billion euros last year. This figure represents a significant 7% increase compared to the previous record year of 2023, which saw revenues of 68.8 billion euros. The robust performance is largely attributed to strong international business.

Overseas sales surged by approximately 15% to 46.7 billion euros, now constituting almost 70% of the sector's total turnover. In contrast, domestic revenue experienced a slight decrease. The outlook for 2026 remains cautiously optimistic, with incoming orders from January to May showing a 3% increase over the same period last year, again driven by international markets, particularly those outside the European Union.

However, the sector faces challenges. Nearly 60% of companies report a shortage of orders, and machinery utilization has fallen below 80%, the lowest point since the pandemic years. This has resulted in a slight decline in employment. Christian Lau, chairman of VDMA Bayern, emphasized the ongoing difficulties in the international landscape and stressed the critical importance of open markets, reliable trade relationships, and new free trade agreements to bolster the resilience and growth opportunities of Bavarian companies.

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The international situation remains challenging. All the more important are open markets, reliable trade relations and new free trade agreements. They strengthen the resilience of our companies and open up additional growth opportunities.