Italy’s machine tool orders up 8.5% in first quarter

According to the latest data from Ucimu-Sistemi per Produrre — the Italian machine tool manufacturers’ association — the first quarter of 2025 saw an 8.5% increase in machine tool orders compared to the previous October-December 2024 period. The absolute value of the index was 84.5 (base year 2021 = 100).

The improvement was exclusively due to the recovery of the manufacturers’ activity in the domestic market with orders up 71.5% rise versus the first quarter of 2024, for an absolute value of 94.5. This was offset though by a deteriorating overseas order intake which was down by 18.2% compared to the same period last year. The absolute value of the index stood at 74.4.

Riccardo Rosa, president of Ucimu-Sistemi per Produrre, said: “2025 has opened with an increase in order intake. This is good news, which proves that, after a very difficult 2024, the short- to medium-term prospects have improved. That said, the context in which we are working is causing many concerns, especially on the international front.”

Significant upturn
For the third consecutive quarter, the order collection in Italy was positive, but Mr Rosa added: “For this latest survey, the upturn was really significant, to the extent of bringing the index closer to the average level of 2021, which was a very positive year. The clarifications regarding the application of the long-awaited measure of Transition 5.0 clearly had positive effects — once enterprises understood the related technicalities and cleared up grey areas, they followed up on their purchase intentions, which materialised in new and actual orders.

“This happened because, in Italy, the demand for new production systems is still sufficiently dynamic and responds to the objective of upgrading industrial plants, both in a digital and ‘green’ way. This trend is also confirmed by the feedback of the companies that will exhibit at Lamiera, scheduled to take place in Milan from 6-9 May, and where exhibition spaces are completely sold out.”

Mr Rosa continued: “Certainly, the fact that to date only 11% of the resources made available for this measure have been used (just over 600 million euros compared to 6.3 billion euro allocated) proves that the measure as structured has not been congenial to enterprises. Indeed, we know from direct experience that when a measure is user-friendly, the market easily adopts it — this was the case with the policy 4.0.”

“In this regard, it is essential that the government provides clarity on Industry 4.0. Since January we have been waiting to receive the instructions for companies to apply for the 4.0 tax credit. If we could have visibility on the actual availability of funds compared to the allocated ceiling of 2.2 billion euro, domestic demand could further accelerate in the next quarter, thus expressing its full potential.

“Unfortunately, the effect could wear off soon afterwards, as companies will not have the time to produce. Therefore, it would be useful to immediately study a measure, verifying its feasibility in Europe. This provision should enable to recover unspent resources and reallocate them for incentive measures, according to the 4.0 and 5.0 models, which should be made available in the next three-year period 2026-2028.”

International challenges
He added: “However, Italian enterprises have received different indications from abroad in the first part of 2025. The worldwide geopolitical crisis, the two open conflicts close to us, the economic and political weakness of Europe, the automotive crisis, and, most of all, the disruptive return of Donald Trump, are deeply troubling the international scenario. The US president’s continuous changes of position concerning a possible tariff policy, differentiated by country and type of goods, have raised the rate of uncertainty to levels not seen in recent history. This requires all players in the economic system to take action in order to face this new situation.

“As entrepreneurs we must go on working to differentiate our markets. The USA is the top destination followed by Germany, China, France and Turkey. We must strive to carefully monitor the areas that may be interesting for us in the coming years, starting with India, Mexico and South America, taking advantage of and also actively participating in the activities implemented by representative organisations to support enterprises.

Mr Rosa concluded: “With regard to Ucimu, we have initiatives conceived to foster the entry of associate member companies in areas with high business potential. It is the case of Oficina Italiana de Promoción México, Desk India with a support office in Mumbai, and Desk China in Beijing, as well as the ITC and IMT Networks in India and Vietnam, created to facilitate the approach of the Networks companies to these markets, as well as planned exploratory missions in the Balkans.”