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Italian machine tool industry suffers a sharp fall in production

Posted on 07 Jan 2025. Edited by: Colin Granger. Read 493 times.
Italian machine tool industry suffers a sharp fall in productionAccording to Ucimu-Sistemi per Produrre — the Italian machine tool manufacturers’ association — Italian manufacturers of machine tools, robots and automation systems, saw 2024 close with a considerable fall across most economic indicators. The association also says it does not expect 2025 to significantly improve, although a weak trend reversal is anticipated.

Based on preliminary data, production in 2024, stood at 6,745 million euros, an 11.4% drop over the previous year. The downturn was due to the sharp contraction of deliveries by manufacturers on the domestic market, which at 2,255 million euros were 33.5% less than in 2023. Riccardo Rosa (pictured), Ucimu’s president, said the measure of this weakness is further verified by domestic consumption, which collapsed by 34.8% to 3,795 million euros — a trend also impacted by imports, which fell by 36.5% to 1,540 million euros.

He added: “However, the performance of Italian manufacturers on the foreign markets was different, as highlighted by the figures for exports, which — compared with 2023 — grew by 6.3% to 4,490 million euros, new record value never achieved before.”

According to Ucimu’s processing of the data from the Italian National Statistics Institute (ISTAT) for the period January-August 2024 (latest available data), the main destination markets for the Italian sector offering of machine tools only were the USA (419 million euros, +17.8%), Germany (243 million euros, +12.3%), China (138 million euros, -15.3%), India (132 million euros, +100%), and France (125 million euros, -9.3%). The export/production figure went up to 66.6%. Ucimu reckons that production should increase again in 2025, reaching 6,940 million euros (+2.9% versus 2024).

‘Completely lost year’

Mr Rosa added: “After the summer, it became clear that 2024 would be ‘a completely lost year’ for the Italian machine tool industry, which tried — albeit unsuccessfully — to save the final outcome through overseas activity. Once again, the year closed by highlighting the ability of Italian manufacturers to orient their business rapidly towards the most dynamic areas in the world, starting with the USA, where we have been doing well for many years now.

“However, looking beyond, the fear that the new US administration may decide to implement a new tariff policy on goods related to our production puts us on alert and forces us to carefully consider our internationalisation activities. However, the big problem for Italian manufacturers remains the domestic market which, after consuming at an unprecedented pace, is struggling to restart.”

Mr Rosa also makes mention of the European Union’s intention ‘to proceed with the electric transition plan for endothermic engines’. He concluded: “What we are currently witnessing, with the closure of some automotive factories and the lay-off of thousands of workers, including those in related industries and activities, risks triggering a domino effect that could bring a serious social problem for most of the countries in the area, starting with Italy. We absolutely cannot allow this, and I think it is necessary for all representative bodies of the industrial world to make their voices heard before it is too late.”