VDMA Woodworking Machinery retracts its forecast for 2024. The decline in production is greater than expected. There is hope for improvement in 2025.

Following a record production of approximately 4.2 billion euros in 2023, the VDMA anticipates a 15 percent decrease in the woodworking machinery industry for 2024, bringing production down to 3.6 billion euros in Germany.

With 3,600 members, the VDMA is the largest network organization and an important voice for the machinery and equipment manufacturing industry in Germany and Europe.

“The positive market momentum at the beginning of the year was not sustainable, so we now have to revise our forecast downwards,” explained Dr. Bernhard Dirr, Managing Director of VDMA Woodworking Machinery.

Earlier, in the spring, the VDMA had forecasted a smaller decline of 10 percent. Overall, customers in the woodworking and furniture sectors remain hesitant about making new investments, with the sluggish construction sector and reduced furniture consumption posing significant challenges for the industry.

“The significant production cutbacks and uncertainty about the near future are causing customers to hesitate with their technology purchasing decisions, despite the high demand for innovation. However, we see light on the horizon. The first interest rate cuts have been achieved. However, further courageous steps are needed to give a substantial boost to the construction industry and hence to the woodworking machinery industry,” added Dirr.

Overall, the VDMA Woodworking Machinery Association believes that order intake has bottomed out. Initial improvements due to regionally unspecific large orders and a stabilization of order activities for standard machines give reason to hope that there will be an improvement across all industrial subsegments in the coming months. “As incoming orders are reflected in production and revenue with a delay, we expect stagnation for the coming year 2025,” explains Dirr about the forecast.

“Automation solutions for all size classes, production concepts for new sustainable building materials and solutions for resource-efficient production will help the industry to return to growth. Added to this is the connecting of machines so that AI applications can be used across the entire value chain and production processes. We are certain that the woodworking machinery industry is on the right track. At LIGNA next May, we will ensure a revival in demand with innovations and new products.” Dirr concluded.

Source:  vdma.org