Record fourth quarter for Italy’s machine tool manufacturers

Data from UCIMU-Sistemi per Produrre — the Italian machine tool, robots, automation systems and ancilliary products manufacturers’ association — show that in the fourth quarter of 2021, the index of machine tool orders recorded a 49.4% upturn compared with the period October-December 2020. The absolute value of the index was 129.1 (base 100 in 2015). This makes the index the highest ever recorded.

The outcome was due to the level of orders collected in the export markets, as well as to the performance of the domestic market. Export orders increased by 29% compared with Q4 2020, giving an absolute index value of 101.5. Domestic orders recorded a 96.9% growth, for an absolute index value 243.9.

On a yearly basis, the orders index recorded a 70.1% rise, for an absolute value of 130.4; and while there was a ‘remarkable recovery’ in foreign sales that resulted in a 43.6% increase in orders for an absolute value of 112.7, orders in the domestic market grew ‘more than exponentially’, being 166.6% greater than the 2020 figure, for an absolute value of 182.7.

Extremely satisfactory
Barbara Colombo, UCIMU’s president, said: “The year 2021 was extremely satisfactory for Italian machine tool manufacturers, as proven by the trend of the orders index over the 12 months. Its upturn was due, on one hand, to the partial recovery of sales abroad and, on the other hand, to the dynamism of Italian demand, also supported by the government incentives of Transition 4.0 — the system of incentives for investment in advanced technologies, research and innovation to boost the competitiveness of Italian production chains.

“However, this unexpected growth of orders, combined with the scarce availability of raw materials and electrical and electronic components due to the interruption of supply chains — especially those linked to the Far East — has resulted in a trying time, with companies compelled to postpone the deliveries of machines ordered by the customers, waiting to receive materials.

If conditions do not substantially change, machine tool manufacturers may have difficulties in ensuring that the machines ordered in 2021 are delivered by 30 June 2022, the deadline by which customers can take advantage of tax benefits according to the Government measure 2021.

“For this reason, we ask the Government authorities to act immediately to extend, by six months, the delivery time of machinery ordered by the end of 2021, postponing the deadline from 30 June 2022 to 31 December 2022.

“The amendment would not burden the state treasury but would be a great advantage for Italy’s manufacturing system, which is involved in the gradual process of digital transformation that is essential for maintaining the competitiveness of the industry.”