Machinery & Equipment

Machinery & Equipment Industry

Market Leadership Powered by German Engineering

Machinery & Equipment | © © Liuhsihsiang - iStock.com

Germany's Machinery and Equipment (M&E) sector is the largest and strongest in Europe. The sector is dominated by small and medium sized companies that provide customized products and small series to meet the strong demand of both domestic and international manufacturing industries. Its strength comes from its long and unwavering tradition, leading position in technological development, diversified industrial base, and the government's robust support for the industry. This position is further strengthened by the staggering growth and dominance of our industrial automation sector and the clear focus to establish Germany as a lead provider and market for cyber physical systems and advanced manufacturing solutions. Take a look at these numbers and find out why the label “Made in Germany” stands for the highest-quality goods in the world!

Industry & Market Numbers

  • M&E is Germany’s largest industry by level of activity; with 6,419 companies and more than 1 million workers along the value chain. Employment in the mechanical engineering industry increased by 18,000 throughout the year 2014 and crack the one million mark.
  • M&E is Germany’s second largest industry by level of turnover; attaining €212 billion in 2014. The M&E turnover level has increased by about 70% throughout the last decade
  • With an export ratio of 76% and a new export record level of €151.5 billion, the pre-crisis level of €145 billion from 2008 has been surpassed. Germany remains the world’s largest machinery supplier with a global machinery trade share of 16.3%.
  • Companies R&D expenditures are about €5.7 billion - one of the most innovative industries in Germany and German companies register more than 25% of the world's mechanical engineering patents.
  • Germany is the number one destination for M&E foreign direct investments in Europe, with 588 projects between 2008 and 2014.

Source: VDMA May 2015, FDI markets June 2015, GTAI research June 2015

Latest Publication

The Machinery & Equipment Industry in Germany | © GTAI Industry Overview: The Machinery & Equipment Industry in Germany

Machinery & Equipment is the largest and most innovative industry sector in Germany, and so one of major strategic importance.

Testimonials for Germany

Delta Shelving Systems GmbH - Stephen Eddowes, Managing Director

Stephen Eddowes, Eigentümer und GF, Delta Shelving Systems  |  © LEG Thüringen, Fotograf: Andreas Hultsch , Jan 2014 "My heart chose Germany. The German culture of quality and excellence is what “Made in Germany” is all about. In terms of surmounting relocation hurdles, Germany Trade & Invest has been absolutely first-class – 10 out of 10!" (2014)



markets Germany - Issue 2/2014

From Down Under to Thuringia - How a small Australian company found a greenfield foothold halfway around the world


Redpack Maschinen GmbH - Jeremy and Stuart Briston, Managing Directors

Jeremy and Stuart Briston, Managing Directors, Redpack Maschinen GmbH  |  ©  Redpack Maschinen GmbH/GTAI "As Europe's largest consumer market at the heart of Europe, Germany offered an exciting place for our family run business to open a subsidiary. We found out that our quality and bespoke machines are well suited to the German marketplace where reliability, durability, low maintenance and safety standards are of paramount importance." (2014)

markets Germany - Issue 3/2014

Branching Out. A move to Germany, a revered location for business, offers great chances for success.


GA Pack GmbH - Hong Gang, Chairman of the Board

Hong Gang Chairman of the Board, GA Pack GmbH | © GA Pack GmbH/GTAI “Germany is traditionally known for improving on what is already good. We greatly value that German employees – much like the entire society – place an emphasis on quality, both in the result and in the process.” (2011)



Kingsbury Inc. – William R. Strecker, President and CEO

Kingsbury Inc. – William R. Strecker, President and CEO |  ©  Kingsbury Inc./GTAI "As Kingsbury (USA) begins its second century of innovation, Germany represents a natural extension for growth throughout the European Union. Many of our OEM customers have home-base operations in Germany, and the technological skills of the German work force is well suited to our business." (2014)


MetoKote Corporation - DeWayne Pinkstaff, President and CEO

DeWayne Pinkstaff, President and CEO of MetoKote Corporation | © MetoKote Corporation/GTAI “The opening of our new Mannheim facility is another step in achieving our global mission of providing custom coating solutions to our valued customers. We are excited to be centrally located in the heart of Europe and eager to serve both our strategic partners and acquire new customers in the region.” (2010)

Market | Personnel | R&D

MARKET - Exceptionally high domestic demand results from Germany's strong industrial structure. The four biggest producing industries (chemistry, electronics, automotive, food and beverages) are also the four most important client sectors for the M&E industry. More than 11,900 companies, employing a combined workforce of around 2.3 million, are active in these four sectors; generating combined turnover of € 694 billion in 2014.

PERSONNEL - Our universities and universities of applied science produce some of the most qualified employees in the business. Almost 30% of all university and college graduates have an engineering or applied science degree. Germany’s unique dual-track education system helps make the country an attractive location for investment – and is growing increasingly popular abroad.

R&D - Our manufacturers cooperate closely with a network of about 100 mechanical engineering university faculties and numerous internationally recognized research institutes.

Incentives | Physical Infrastructure | Stable Investment Environment

INCENTIVES - Germany offers numerous incentives for all investors - regardless of whether they are from Germany or otherwise. There is a large selection of programs designed to support a wide variety of business activities at different stages of the investment process available. Support ranges from cash incentives for the reimbursement of direct investment costs to incentives for labor and research and development (R&D). Within its High-Tech Strategy 2020 the government offers special support for technology partnerships and provides R&D grants and loans. INDUSTRIE 4.0 is one of 10 “Future Projects” identified by the German government as part of the High-Tech Strategy Action Plan 2020.

PHYSICAL INFRASTRUCTURE - We offer an extensive and comprehensive logistics infrastructure that integrates state-of-the-art transportation networks with the most modern telematics, IT, and telecommunications systems.

STABLE INVESTMENT ENVIRONMENT - Social, economic, and political stability provide a solid base for your corporate projects. Our judiciary and civil services are highly professional. Contractual agreements are secure and intellectual property is strictly protected in Germany.

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Peggy Görlitz

Peggy Görlitz

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