The Italian machine tool industry maintained overall stability in the third quarter of 2025, with total orders rising 1.1% compared to the same period in 2024. According to data compiled by the Studies Department & Business Culture Centre of UCIMU–SISTEMI PER PRODURRE, the index of orders reached 53.3 points (base year 2021=100), confirming steady performance despite challenging international conditions.
Domestic demand provided the main support for the sector, with orders in the Italian market increasing by 12.4% year-on-year and reaching an index value of 15.4. Conversely, foreign orders declined by 7.7%, bringing the index for overseas business to 87.1, reflecting slower international activity.
Commenting on the figures, Riccardo Rosa, President of UCIMU–SISTEMI PER PRODURRE, said “While domestic orders have shown improvement, the overall level of demand remains modest. The slowdown in exports has only been partially offset by the slight recovery in the Italian market. The situation continues to be difficult, particularly for manufacturers tied to the automotive sector.”
Mr Rosa noted that the broader European context remains uncertain. Economic weakness in Germany, the ongoing geopolitical instability linked to the Russia–Ukraine conflict, and the industry-wide transition toward electric mobility are all affecting manufacturing output. “European automakers are hesitating to invest as the future of propulsion technologies remains unclear,” Rosa explained. “Suppliers are feeling the impact, with plant closures and workforce reductions being announced almost daily.”
He further stressed that the contraction of the automotive sector—traditionally Italy’s main export market for machine tools—has not been offset by investment from emerging industries. “To prevent industrial decline across Europe, it is vital to extend the transition timeline for green mobility and to consider alternative propulsion technologies that combine low emissions with the preservation of production capacity and employment,” Rosa urged.
Turning to global markets, Rosa pointed out that while the United States has so far shown resilience, growing trade tensions are creating difficulties. “Some Italian firms are facing delays in deliveries to the U.S. due to tariffs,” he said. “This uncertainty, together with the cautious stance of the American administration, has contributed to a slowdown in export activity, as reflected in our foreign order data.”
On the domestic front, UCIMU welcomed the ongoing work of the Ministry of Enterprises and Made in Italy and the Ministry of Economy and Finance, which are preparing a new industrial policy framework for 2026–2027. Mr Rosa emphasized the importance of effective, long-term measures “The previous 5.0 program offered some benefits only in its final phase. The new plan must provide companies with a practical and stable tool to support technological renewal and digital transformation.”
He added that UCIMU favors a single, simplified incentive system, preferably based on tax credits, with a bonus for production within the European Union. “Equally important are the duration and the funding allocated to this measure,” Mr Rosa concluded. “As artificial intelligence and digital technologies reshape manufacturing, timely implementation and adequate financial resources will be essential to strengthen competitiveness and counter the pressure from non-European suppliers.”
