Struggling Sectors: Auto & Machinery Manufacturing in Thuringia Face Headwinds Despite Overall Revenue Increase
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Industrial sectors focusing on automobiles and machinery continue to experience uncertainty and fluctuation. - Industries specializing in automotive and mechanical engineering are experiencing a downward trend.
While Thuringia's industrial sector kicked off 2025 with a solid revenue boost, reaching nearly 9.5 billion euros, an increase of 4.6% from the previous year, two critical sectors continued to struggle: the automotive industry and machinery manufacturing. These sectors battled similar challenges in 2024.
Domestic sales saw a 3.9% bump to reach 5.9 billion euros in Q1, while export growth was slightly higher at 5.7%, amounting to a total of 3.6 billion euros, representing more than a third (37.6%) of Thuringia's industrial turnover.
The machinery manufacturing sector and service providers around repairs and installations of machines and equipment experienced a notable revenue increase compared to the previous year. However, machinery manufacturing revenue took a tumble of over 20%, and the automotive industry witnessed a dip of around 11%.
These setbacks had a ripple effect on employment within the industry. On average, around 141,000 employees were employed between January and March, a decrease of nearly 3,000 from the same period last year. This marks the seventh consecutive quarter of employment decline, according to data gathered from 776 companies with at least 50 employees.
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Though not explicitly mentioned in the data, possible challenges facing the automotive and machinery sectors may include issues related to inventory management due to market shifts and tariff uncertainty, supply chain pressures, technological and regulatory challenges, and global economic and political factors. Adapting to market conditions, investing in advanced technologies, and ensuring robust supply chain management could be crucial for these industries to stay competitive.
- The Thuringia government may need to reevaluate its community policy to address the continuous employment decline in the automotive and machinery sectors, providing incentives for businesses to invest in advanced technologies and strengthen their supply chain management.
- As the overall industrial revenue in Thuringia continues to rise, it is essential for the employment policy to focus on sectors such as manufacturing, including automotive and machinery, to minimize job losses and stimulate growth in these struggling industries.
- Finance experts and policymakers should consider examining the employment policies across different industries, with specific attention to sectors like manufacturing, to address the challenges faced by the automotive and machinery industries and foster a more balanced economic growth for Thuringia.
