GERMANY - The German woodworking machinery industry faces a significant slowdown in production and exports after a record year in 2023.

The German Woodworking Machinery Association VDMA forecasts significant challenges for 2024, predicting a recovery by early 2025.

In 2023, the sector reached record production of EUR 4.2 billion , an increase of 15% over the previous year. However, by mid-2024, orders fell by 23%, indicating a projected decline in production of at least 10% for the year.

Despite the slowdown, the trend toward sustainability and decarbonization generates optimism for a recovery.

Exports, which increased by 10% to EUR 2.7 billion in 2023, took a hit in the first quarter of 2024, with a 17% drop compared to the same period last year.

Despite the challenges, it highlights the importance of collaboration between European manufacturers to develop pre-competitive foundations for digital business models.