Do the United States need German machines? - Image: Xpert.digital
German mechanical engineering: key partner for the US industry?
Germany's mechanical engineering vs. US economy-a mutual dependency?
The United States are one of the most important sales markets for German mechanical engineering. Due to its specialization and high technology competence, Germany plays a key role in the US industry. German mechanical engineers not only provide innovative and tailor -made solutions for demanding applications, but also benefit from extensive economic programs and structural gaps in American mechanical engineering. But how big is the dependency of the USA on German machines really?
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German technology as a backbone of the US industry
German mechanical engineering has developed an excellent reputation worldwide and plays a leading role, especially in the United States. This is reflected in the export numbers:
- Market shares: German machine exports to the USA achieved a record value in 2023 with USD 37 billion, an increase of 19 % compared to 2022. Germany is the most important machine supplier ahead of China and Japan.
- Specialized solutions: In key areas such as precision machines (lithograph, laser technology), packaging automation or construction machines (soil compressors, deep drilling devices), German manufacturers are almost unrivaled. Many US companies cannot produce this high technology themselves.
Driver of demand
Several factors influence the persistently high demand for German machines in the USA:
1. Extensive infrastructure programs
With various investment programs, the US government has set the course for modernizing the infrastructure. These programs increase the need for special machines:
- The Infrastructure Investment and Jobs Act (1.2 Bio. USD until 2028) promotes large construction and modernization projects in the USA, which require the use of highly developed machines.
- The chips act (39 billion USD subsidies) supports the development of semiconductor productions, from which German mechanical engineers benefit with their leadership in the field of precision production.
An example: The imports of construction and mining machines to the USA rose by 35 % to $ 19 billion in 2022, since many US companies rely on foreign technology.
2. Ein industrialization and production shift
The United States industrial landscape has changed significantly since the 1980s. Many manufacturing areas have been relocated abroad, which caused a loss of know-how in mechanical engineering. Today US companies are competitive, especially in the production of universal systems (e.g. from Caterpillar), while specialized machines often have to be imported.
3. Energy transition and electromobility
With ambitious climate goals such as the planned electrification of all new cars by 2040, the need for modern production facilities increases. German mechanical engineers benefit from the construction of new gigafactories and recycling systems for batteries, especially through inflation reduction act ($ 369 billion).
Strategic adjustments of German mechanical engineers
In view of the protectionist tendencies and geopolitical uncertainties, German companies adapt to strategically:
- Localization: 75 %of German mechanical engineers plan to expand their US presence by 2025, be it through new production facilities (37 %), service networks (66 %) or personnel increasing.
- Protectionism as a challenge: a possible return from Donald Trump could lead to punitive tariffs. In order to secure themselves against potential trade barriers, more and more companies are moving parts of their production to the United States.
The US market remains highly attractive in the long term. The market volume for machines will be 1.2 bio by 2032. USD estimated. With their technology leadership and flexible location strategies, German manufacturers can secure a strong market position. The United States is dependent on German know-how to achieve its industrial goals.
Leading machine categories and their meaning
1. Packaging and food machines
- Germany dominates the market for intelligent packaging systems and automation solutions in food production.
- Exports to the USA: EUR 1.3 billion (Jan-Okt 2023).
2. Machine tools & CNC processing centers
- German manufacturers such as DMG Mori provide precision machines for the automotive and aviation industry.
- Import value: $ 480 million (2022).
3. Construction and mining machines
- High -specialized machines from German manufacturers (e.g. Vögele, Bauer) are highly in demand in the USA.
- Import growth of 35 % in 2022 by infrastructure programs.
4. Industrial robots & automation systems
- Companies such as Kuka and Siemens shape the market for collaborative robots and automation solutions.
- Two -digit growth rates since 2023.
5. Precision technology for semiconductor industry
- German companies supply 68 % of the US requirement for high-precision manufacturing systems.
- Important actors: Trumpf (lithograph), Carl Zeiss (optical systems).
Are the USA dependent on German machines?
The persistently strong demand for German machines in the USA is powered by technological leadership, lack of local alternatives and government investment programs.
- Technology pieces: 73 % of US manufacturing capacities for high-precision machines come from Germany.
- Local production: 75 % of German mechanical engineers rely on production facilities on site.
- Subsidies: 62 % of German companies benefit directly from US funding programs.
Despite economic fluctuations, the US market remains strategically central to German mechanical engineering.
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