After a production record in 2023 of 4.2 billion euros, the VDMA expects a minus of 15 percent for the woodworking machinery industry in the current year 2024. This would reduce the production value in Germany to 3.6 billion euros.
In the spring, the VDMA Woodworking Machinery Association had still expected a minus of 10 percent. 'The positive market impulses at the beginning of the year were not sustainable, so we now have to revise our forecast downwards,' explains Dr. Bernhard Dirr, Managing Director of the VDMA Woodworking Machinery. Overall, customers in the wood and furniture industry are still hesitant about their investment decisions.
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The weak construction economy and the reluctance to buy furniture are causing problems for the industry. 'The significant reduction in production and the uncertainty about the near future are causing customers to hesitate in their decisions on purchasing technology, despite the high need for innovation. However, we see light on the horizon. The first interest rate cuts have been made. However, further bold steps are needed to substantially boost the construction industry, investments and indirectly the woodworking machinery industry,' adds Dirr.
Overall, the VDMA Woodworking Machinery Association believes that the low point in incoming orders has been reached. Initial improvements due to isolated large orders being concluded and a stabilisation of order activity for standard machines give reason to hope that a broad improvement will come in the coming months.
'Since incoming orders have a delayed impact on production and sales, we expect stabilisation for the coming year 2025,' says Dirr about the outlook. 'Automation solutions for all size classes, manufacturing concepts for new sustainable building materials and solutions for resource-efficient production will help the industry to get back on the growth path. In addition, machines will be networked so that AI applications can be used to their full extent. We are certain that woodworking machine construction is on the right track. At LIGNA next May, we will ensure a revival of demand with innovations and new products.'
More information:
VDMA
www.vdma.org