German woodworking machinery industry optimistic despite current challenges

Members of the German woodworking machinery association VDMA look optimistically to the future, despite the current challenges.

Despite declines in production and exports, members of the VDMA Woodworking Machinery Association are optimistic. Record production and exports in 2023 will be followed by a projected double-digit decline in industry turnover in 2024. However, the outlook remains positive, thanks to macro trends on sustainability and decarbonisation continuing to gain ground.

Markus Hüllmann, President of the VDMA Woodworking Machinery Association, said at the 2024 members' meeting in Munich: "The macro-trends of sustainability and decarbonisation continue unabated and are even being driven forward. This means that the prospects for our industry remain excellent. We expect demand to grow again on a large scale next year. We are already seeing increased investment in some customer industries."

Exports of German woodworking machinery increased by 10% in 2023. Although exports decreased by 17% in the first quarter of 2024 compared to the same period last year, individual markets such as the US, China and France showed positive developments. Meanwhile, declines in Poland were drastic (-50%) and Austria remained constant.

International competition for German woodworking machinery manufacturers is getting tougher.

The industry is adapting to new challenges by accelerating product development and implementing innovative solutions for automation and digitalisation, without compromising on cost efficiency. "If you want to stay ahead, you have to build on your strengths and focus on technologies and topics that generate real added value for customers," Hüllmann stressed.

The association sees closer cooperation between European producers as an important approach.

Dr. Bernhard Dirr, Executive Director of the Woodworking Machinery Association, said, "While the main competition in the past was between larger European companies, it is now increasingly shifting to fast-growing Chinese manufacturers. We should work together more closely to develop pre-competitive foundations for digital business models that individual manufacturers can no longer offer. Innovative digital customer solutions can make a difference, and we need a common foundation for this."

In conclusion, the German woodworking machinery industry demonstrates resilience and adaptability in the face of today's challenges. Although turnover is expected to decrease in 2024, the optimism of the members of the VDMA Woodworking Machinery Association remains unshaken. By focusing on innovation, cooperation and meeting customer needs, the industry is well positioned to overcome short-term challenges and seize future opportunities. Macro trends of sustainability and decarbonisation will continue to drive demand, and German woodworking machinery manufacturers are poised to meet these demands with advanced technological solutions and innovative digital business models. The industry is looking confidently to the future, expecting a rebound in demand and sustained long-term growth.