UCIMU-SISTEMI PER PRODURRE, the Italian machine tool, robots, automation systems and ancillary products (NC, tools, components, accessories) manufacturers’ association, has reported that the Italian machine tool manufacturing industry has marked another positive year in 2023, achieving a new production record and extending a favorable trend expected to continue into 2024. Barbara Colombo, President of UCIMU-SISTEMI PER PRODURRE, the association for Italian machine tools, robots, and automation systems manufacturers, highlighted these developments during the year-end press conference.
According to preliminary data processed by UCIMU’s Studies Dept. & Business Culture, the production for 2023 reached 7,560 million euros, representing a 3.8% increase from the previous year. This growth was driven by a robust performance in exports, which experienced a 10.3% increase to reach 3,825 million euros. The export/production ratio reached 50.6%. The data from the Italian National Statistics Institute (ISTAT) revealed that the United States, Germany, China, France, and Poland were the main destination markets for Italian machine tools and automation systems in the period January-August 2023. Exports to these countries saw significant growth, indicating strong demand.
However, the domestic market saw a slight decline, with deliveries by Italian manufacturers decreasing to 3,735 million euros, reflecting a 2% drop compared to 2022. Deliveries and imports were affected by a decrease in consumption, which fell by 3% to 6,120 million euros. Looking ahead to 2024, Italian machine tool manufacturers anticipate a consolidation of recent positive results. The forecast from UCIMU’s Studies Dept. & Business Culture Centre projects production to grow to 7,595 million euros, a 0.5% increase from 2023. Exports are expected to drive this growth, reaching 4,070 million euros, a 6.4% increase.
However, deliveries to the domestic market are expected to decrease to 3,525 million euros, reflecting a 5.6% reduction in line with the drop in domestic consumption, projected to reach 5,780 million euros, down by 5.6%. Imports are also expected to be impacted, decreasing by 5.5% to 2,255 million euros. Barbara Colombo commented on the positive sign for Italian manufacturers in 2023, “Although there are clear signs of a slowdown, the 2023 of Italian manufacturers is closing with a positive sign; the ‘Made in Italy’ production of the sector grew again, setting a new record thanks to the good results obtained by Italian enterprises abroad”.
Barbara Colombo emphasized the association’s recent submission of an operational plan to the Ministry of Foreign Affairs and International Cooperation. The plan, covering 2024-2025, aims to strengthen cooperation between the Italian and German machine tool industries. It includes initiatives like mutual visits to production facilities, organization of activities for German delegations visiting Italy, an Italian Machine Tool Forum in Germany, and market analyses. Colombo suggests a public-private cooperation model involving trade associations and entities like the Ministry of Foreign Affairs, Sace, Simest, CDP, and ICE-Italian Trade Agency.
Simultaneously, UCIMU remains committed to diverse markets, launching initiatives to support internationalization. Business networks like ITC in India, active for eleven years, and IMT in Vietnam, established last September, play crucial roles in penetrating geographically distant regions. Colombo noted a drop in the willingness of Italian investors to invest in 2023, attributing it to a gradual return to normal values after exceptional growth in previous years. Despite a reduction in orders, the Italian market remains vital. The manufacturing industry is eager to continue its digital transition, with Colombo acknowledging government efforts like Transition Plan 5.0, focusing on green and digital transformations.
While appreciating the European Commission’s approval for financing Transition Plan 5.0 with Repower EU, Colombo awaits the plan’s implementation. She called on the government to refine Measures 4.0 to extend their application to a broader range of companies. The proposal suggests raising the tax credit rate of the first bracket, currently at 20%, and lowering the maximum value of eligible investments, set at 2.5 million euros. Colombo emphasized the importance of incentivizing smaller companies, often more hesitant to undertake digital transitions, given limited economic resources.