The Economic Studies Department & Business Culture Centre of UCIMU-SISTEMI PER PRODURRE has released its index of machine tool orders for the first quarter of 2024, revealing a significant downturn of 18.9% compared to the same period in 2023. The absolute value of the index, set at 77.9 (base year 2021=100), highlights the challenges faced by Italian manufacturers in both domestic and foreign markets.
The decline in orders was particularly pronounced in overseas markets, where orders decreased by 18.5% compared to the previous year, with an index value of 91. Domestically, orders saw a steep drop of 19.4%, resulting in an absolute index value of 55.1.
Barbara Colombo, president of UCIMU, expressed concern about the negative start to 2024 for Italian machine tool manufacturers. She emphasized the need to provide the market with reassurance and stability to stimulate investment in state-of-the-art machines.
Colombo attributed the cautious start in foreign markets to geopolitical tensions, including conflicts in the Israeli-Palestinian area and between Russia and Ukraine, as well as uncertainties surrounding the energy transition and the upcoming European elections. However, she expressed optimism about export prospects, anticipating moderate growth in the United States and increased sales to emerging markets such as Turkey, Mexico, and India.
On the domestic front, Colombo highlighted the stagnation in demand due to delays in implementing measures to enhance competitiveness. Despite receiving requests for quotations for significant projects, uncertainty about government incentives has hindered investment decisions.
Colombo urged the government to expedite the implementation of measures outlined in Transition 5.0 and 4.0 to support the manufacturing sector. She emphasized the importance of clarity and prompt action to reignite demand for new production technologies.
As the deadline for taking advantage of Transition 5.0 benefits approaches, Colombo stressed the need for timely issuance of implementing decrees to prevent companies from missing out on market opportunities. Additionally, she addressed concerns about changes to investment rules under Transition 4.0, calling for greater transparency from authorities to restore investor confidence.
Colombo underscored the importance of government action in providing clarity and support to revitalize the Italian manufacturing sector and enable businesses to thrive in an increasingly competitive global market.
