Production sites in Europe under pressure

The construction equipment and building materials machinery sector is approaching the coming months with concern. It is not cyclical fluctuations that continue to cloud the outlook, but structural problems. Deregulation, reduced bureaucracy and a level playing field are still lacking.

Frankfurt am Main, July 2026 – The sector does not anticipate growth this year. The currently expected real increase in turnover of between 0 and 5 per cent in Germany by the end of the year does not offset the cumulative 23 per cent decline in turnover since 2023. The trend in Europe and globally paints a similar picture. Here, the sector expects sales to rise by around 5 per cent.

A sense of disillusionment prevailed at the Executive Board meeting of the ‘VDMA Construction – Equipment and Plant Engineering’ Division on 26 June 2026. Politicians have recognised the situation and the tasks ahead. It is now crucial that, in the course of taking action, they do not introduce new regulations but instead dismantle existing ones and reduce bureaucracy.

In particular, the Executive Board supports the VDMA’s call for countervailing duties to be imposed on entire sub-sectors of the mechanical engineering industry rather than on individual product groups where imports from third countries breach anti-dumping or anti-subsidy rules. The EU should already be examining the imposition of tariffs when companies or the European Commission provide evidence of unfair distortions of competition. If China artificially undervalues its currency, the EU should offset this advantage.

Joachim Strobel, Chairman of the VDMA Construction – Equipment and Plant Engineering, urges: “Politicians must act now. The challenges are well known, and the industry remains committed to Europe as a business location. However, without swift, effective relief and reliable framework conditions, companies will come under pressure to relocate.”

Do you have any questions? VDMA consultant Press and Public Relations at the construction equipment association Martina Scherbel, will be happy to answer them: +49 69 6603 1257, martina.scherbel@vdma.eu.

About VDMA

The VDMA represents 3500 German and European mechanical and plant engineering companies. The industry stands for innovation, export orientation and SMEs. The companies employ around 3 million people in the EU-27, more than 1.2 million of them in Germany alone. This makes mechanical and plant engineering the largest employer among the capital goods industries, both in the EU-27 and in Germany. In the European Union, it represents a turnover volume of an estimated 900 billion euros.
Around 80 percent of the machinery sold in the EU comes from a manufacturing plant in the domestic market.