In the fourth quarter 2023, the index of machine tool orders compiled by Ucimu-Sistemi per Produrre — the Italian machine tool manufacturers’ association — showed a fall of 31.1% compared to the Q4 (October-December) 2022. The absolute value of the index stood at 92.1 (base year 2015 = 100).

The negative performance was due to the reduced order intake in the domestic market, whereas foreign sales showed resilience, dropping by only 2.9% compared to Q4 of the previous year. The absolute value of the index was 100.9. On the domestic front, Q4 orders saw a 69.1% downturn for an absolute value of 79.4. On an annual basis, the index marked a 24.7% decrease compared to the 2022 average (absolute index 90.5). The domestic index was down by 48.4% (absolute index 74.6); the foreign index down by 11.3% (absolute index 102.8).

Barbara Colombo, Ucimu’s president (pictured), said: “The data confirms our expectations, with 2023 marking an evident reduction in the orders received by Italian manufacturers in the domestic market, although this was counterbalanced by a general stability in the foreign markets. Overall, however, our companies are working intensively, thanks to the queue of orders that still have to be processed.

“Regarding the domestic market, the decline in new orders was not unexpected and corresponds to a general downturn in demand after the boom experienced in the last period. That said, if we focus on the last quarter, the fall was mainly affected by the ‘waiting effect’ for the new incentive measures that were expected — and still are expected — for 2024.

“The discussion opened by the government and the parliament over the last few months of 2023, regarding the possibility of introducing new Industry 5.0 incentives, certainly led the companies to suspend their purchasing decisions while awaiting clarity. In practice, what has happened was the opposite of what occurred last year, when there was a rush to invest in the last quarter of the year, to take advantage of the 40% tax credit rate before it was halved at the start of 2024.”

She continued: “We are currently waiting for the ‘implementing decrees’ concerning the Industry 5.0 measures that should allow tax credits for education and training and for investments in ‘innovation projects aimed at digital sustainability’. On the foreign front, order intake was substantially stationary, compared to those collected in the domestic market, where the incentives available over the years have brought about strong fluctuations in demand.

“In particular, Italian manufacturers currently have the USA as its primary export destination, and we expect it to remain so in the coming months, and thereby compensate for the weakness of Asian and European demand, although we anticipate Europe — and especially Germany — returning to levels enjoyed in the recent past.

“With reference to Germany, in the period January-September 2023 (latest available data), ‘Made in Italy’ machine tool sales amounted to 244 million euros — 10% more than in the equivalent period of 2022. That said, this amount was significantly lower than in the period prior to 2018 and compared to the record set in 2008, when it reached some 465 million euros.”