The recovery of the German machine tool industry after World War II

Abstract

The German machine tool industry, which supported the munitions industry during World War II, faced a serious crisis after Germany's defeat. What were the difficulties that the industry experienced at the time? How was it able to revive? In this paper, the process of recovery of the German machine tool industry is examined by analyzing representative companies in the former West Germany during the change in occupation policy of the Allied Powers. The findings are as follows: First, aside from the obvious war damage, postwar "demontage" greatly affected the individual company in the short term, but it also removed the excess capacity accumulated during the war and paved the way for the creation of a new market in the long term. Second, a combination of currency reform, tax reform, and the Marshall Plan promoted the revival of the industry by helping the production recovery of each machine tool company. Third, the relocation and rebuilding of factories from the Soviet Occupation Zone to the Bizone accelerated the development of the West German machine tool industry. To overcome these difficulties, the industrialists, engineers, and workers who embodied the established reputation of the German machine tool industry played an essential role.