Exclusive: VDMA warns of urgent need for SME engineering company support

Posted 26 August, 2026
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ProSweets, which is set to be renamed as ISM Manufacturing, has represented key machinery interests across Europe. The VDMA has called on the German government to back SME's in the sector. Pic: koelnmesse

The VDMA European engineering association has called on the German federal government to back small and medium-sized enterprises across the sector, through investment reforms and cutting bureaucracy, reports Neill Barston.

Notably, the organisation, which represents some 3,500 enterprises operating within the EU, including manufacturers with interests in the confectionery, snacks and bakery space.

The German headquartered group’s Chief Executive Thilo Brodtmann has spoken ahead of the government’s planned cabinet meeting today at Neuhardenberg, asserting that there’s little time remaining to make 2026 a year of much-needed reform against a backdrop of supply chain challenges, and heightened production costs.

As Confectionery Production has previously reported, Germany’s BDSI confectionery industry association also echoed calls for greater government assistance for manufacturers across the complete confectionery manufacturing sector, with concerns emerging over its competitiveness amid rising burdens on operating budgets. 

Thilo Brodtmann commented: “The federal government has just four months left to make 2026 a year of reform. Neuhardenberg must mark the start of a genuine breakthrough for small and medium-sized industrial companies. First and foremost, the machinery and plant engineering sector needs rapid and tangible reductions in bureaucracy, as well as reforms that stimulate new investment.”

“Our industry can only remain globally competitive if the framework conditions are right. This requires an uncompromised pension reform, further structural changes to statutory health and long-term care insurance to lower contribution rates, and more flexible working-time laws. Piecemeal measures simply won’t help,” adding that the government must advance ‘digital sovereignty in a technology-neutral manner’.

In his view, mere statements on the matter were not enough, tangible actions to assist with implementation for topics such as robotics and AI across sectors was of vital importance.  

He added: “When it comes to heat protection, we expect the federal government to develop effective solutions in close collaboration with the mechanical engineering sector that benefit society as a whole. Policymakers should promote technological innovation in a targeted and unbureaucratic manner.”

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