VDMA: UK’s decision to leave EU alarms Germany’s mechanical engineering industry

Mechanical engineers in Germany are viewing the UK’s decision to leave the European Union with great concern. The VDMA fears a loss of confidence in Europe as an industrial location, and a drastic reduction in exports to the United Kingdom.

In economic policy terms, Germany is losing a key ally in the EU.

From the point of view of companies within the industry, the EU must now provide clarity on Britain’s departure from the EU and establish the conditions for the country’s future cooperation with the EU. The VDMA also warns that Britain’s exit must not be a danger for the EU.

“Great Britain’s decision to leave the EU is a warning signal for companies. The Brexit will cost Europe as an industrial location a great deal of confidence among investors.

It won’t be long before our machinery exports to the UK start to fall off noticeably. It is completely unclear what will happen to companies with UK subsidiaries.

The EU must now contain the damage and keep the period of uncertainty as short as possible. Europe’s companies need security to plan ahead and a reliable roadmap for the exit”, says Thilo Brodtmann, VDMA chief executive.

“For export-oriented companies, fragmentation of Europe would be the nightmare scenario. Unfortunately, the Brexit will give EU sceptics in other countries a boost. From an economic standpoint, however, there is no reason to doubt the importance and the future viability of the EU”.

In Germany, mechanical engineering in particular is reliant on a stable political environment in Europe. In 2015, 44.8 per cent of all the industry’s exports went to other EU countries (69.6 billion Euros).

In the UK itself, in the first quarter of this year German companies have already suffered a 4 per cent decline in machinery exports, to around 1.7 billion Euros compared to the previous year.

In 2015, the country was the fourth-largest foreign market (7.2 billion Euros export volume) for Germany’s mechanical engineering sector, behind the USA (16.8 billion Euros), China (16 billion Euros) and France (9.8 billion Euros) and ahead of Italy (6.5 billion Euros) and the Netherlands (6.1 billion Euros).

Contact: holger.paul@vdma.org

Source of the image : Fotolia

600450 VDMA: UK’s decision to leave EU alarms Germany’s mechanical engineering industry glassonweb.com

See more news about:

Others also read

B’CHAMP
Join Bystronic glass at the top.
glasstec
A fresh wind for the 25th anniversary and a large number of businesses participating.
AMETEK Land to Demonstrate Furnace Optimisation and NOx Reduction at Glasstec 2018
AMETEK Land will showcase its award-winning, real-time, in-furnace thermal imaging Near Infrared Borescope (NIR-B) Glass with its pneumatic auto-retract system at Glasstec 2018, October 23-26, at Düsseldorf Messe, Germany, on Stand E52 in Hall 14.
Combined with the accumulator, conveyor line and Automated Guided Vehicles (AGV), the Tin-Air-Speed-Stacker shows numerous advantages.
Visitors to the Grenzebach booth at the glasstec in October in Düsseldorf can take a peek into the future: The company provides its own lloT platform (Industrial Internet of Things) for the glass factory of tomorrow.
Technological partnership for “Patio Inowa” sliding solution
A single solution, extensive expertise: Roto “Patio Inowa” for sliding windows and doors with timber-aluminium design.
DGlass designed a Victoriana rear facade to complement but also contrast with the original hospital buildings
New build specialist DGlass completed an Ideal 70 installation on the site of a former Taunton hospital in summer of 2018. Supplied in anthracite grey on white, the windows and doors have been pivotal in defining the character of the build.

From industry

Am Pfahlgraben 4
35415 Pohlheim
Germany

Add new comment