Italy’s machine tool industry witnessed a sharp decline in order intake during the second quarter of 2026, with total orders falling 25.8% compared with the same period last year, according to the latest Machine Tool Order Index released by UCIMU-SISTEMI PER PRODURRE. The index, prepared by the association’s Economic Studies Department and Business Culture Centre, stood at 47.8, with 2021 as the base year.
The decline reflects continued challenges in both domestic and international markets as manufacturers navigate an uncertain global economic and geopolitical environment. Orders from overseas markets dropped 15.3% year-on-year, taking the foreign order index to 63.2. The domestic market recorded an even steeper decline, with orders falling 38.7% compared with the second quarter of 2025. The Italian order index stood at 33.1 during the quarter.
Commenting on the results, UCIMU President Riccardo Rosa said the machine tool industry continues to face significant pressure from global geopolitical tensions, including ongoing conflicts, disruptions in the Strait of Hormuz and uncertainty surrounding international trade policies. These developments have affected industrial investment decisions and slowed demand across key markets.
Despite the difficult conditions, Italian manufacturers have continued to diversify their business by focusing on regions less affected by geopolitical risks and by expanding into industries with stronger demand. However, Rosa noted that growth in sectors such as defence, aerospace and energy cannot fully compensate for the decline in investment from the automotive industry, which has traditionally been one of the largest customers for machine tool manufacturers.
He reiterated the industry’s appeal to European policymakers to adopt a technology-neutral approach to the future of the automotive sector. According to him, such a strategy would help manufacturers manage the industry’s transition while protecting industrial competitiveness, employment and long-term investment across the supply chain.
On the domestic front, Rosa said many Italian companies delayed investment decisions while awaiting clarity on the government’s Hyper-depreciation incentive scheme. Since all operational procedures were completed in June, companies have started showing renewed interest in purchasing production equipment.
Although the positive impact has not yet been reflected in the latest order figures, early signs indicate that investment activity is beginning to improve. According to data released by Italy’s Ministry of Enterprises and Made in Italy (MIMIT), around 7,000 applications worth a combined €2.5 billion had been submitted through the GSE platform by July 9.
Rosa welcomed the government’s decision to keep the Hyper-depreciation incentive available until September 2028, saying the extended timeframe will help companies plan investments with greater confidence while allowing machine tool manufacturers to better manage production schedules over the coming years.
Looking ahead, UCIMU expects the domestic market to gradually recover towards the strong levels recorded during 2021 and 2022, when the Italian machine tool market exceeded €6 billion. The association believes continued investment in advanced manufacturing technologies, digitalisation and artificial intelligence will be essential for maintaining the competitiveness of Italy’s manufacturing sector in the global market.
