Manufacturing companies are under increasing pressure to meet rising sustainability requirements. A complete focus on increasing efficiency, because of the industrialization paradigm, is no longer sufficient in this context, as fundamental sustainability considerations are lacking. The German toolmaking industry, which serves as a key enabler for series production, is currently also facing massive economic challenges. In recent years, global crises and geopolitical changes have led to supply chain disruptions that have significantly affected production processes and competitiveness within the industry. The economic pressure on the industry is rising because of new competitors, particularly from Asia. These are forcing companies in the German high-wage sector to reduce maintain competitiveness. This threatens the long-term competitiveness of the sector, which is essential for industrial production in the German economic area. A new production paradigm is needed to ensure the competitiveness of the German toolmaking industry. “Eco-effectiveness” goes beyond pure by aligning ecological imperatives with economic viability. The aim of this paper is to show that sustainability and competitiveness are not opposing objectives but must be addressed in an integrated manner. The above-mentioned reasons lead to a model for the eco-effective design of the German toolmaking industry. Adapted to the specific boundary conditions of the industry, this model is intended to help make production processes both sustainable and economically successful. This model is intended as a practical guideline, synthesized based on defined fields of action, that ensures the future viability of series production.