German woodworking machinery production is forecast to fall by around 7% in 2026, marking a third consecutive annual decline. Order intake grew moderately by 7% in the first four months of 2026 but includes several larger orders that are not sufficient to bring about a turnaround in production in the current year, the VDMA, Woodworking Machinery Trade Association of Germany, reported.
Production had already shrunk by single‑digit figures in 2025 and 2024, and the association expects no fundamental and sustainable change in the trend for 2026.
Exports of German woodworking machinery fell 11% to Euro 2.26 billion in 2025. In the first quarter of 2026 exports rose 2% year‑on‑year to Euro 570 million. The U.S. ranked first export market in Q1 2026, driven primarily by a major order from the wood‑based materials industry; excluding production facilities for wood‑based materials, China ranked first, followed by Poland, France and the U.S.
The primary woodworking machinery sector, covering sawmill technology and wood‑based panel production, has been hit harder by the downturn than the secondary segment that supplies machinery for further processing. Manufacturers whose customers process timber for construction are faring comparatively well as timber construction gains market share in Europe and elsewhere, which has reduced reluctance to invest in that segment.
Companies in the sector are adapting product ranges, services and business models to the changed market environment. There is continuing demand for technological leadership, intelligent automation and logistics solutions and for digital customer solutions. Engineering alone is no longer sufficient; manufacturers are aligning offerings to customer business models and to technologies that enable new products, faster processing and greater flexibility.