4th quarter earnings Italian machine tool industry eyes cautious recovery

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Despite encouraging growth at the close of 2024, the Italian machine tool industry remains cautious. Ucimu President Riccardo Rosa warns that challenges such as global instability, weak export markets, and domestic demand concerns are still at play.

Italy’s machine tool industry experienced a significant 11.4 percent increase in orders during the fourth quarter of 2024, according to data from the Ucimu-Sistemi per Produrre's Studies Department. However, despite this growth, Riccardo Rosa, president of Ucimu, warns of ongoing challenges both domestically and internationally.

The domestic market saw a remarkable 33.3 percent increase in orders compared to the same period in 2023, reaching an index value of 58. Meanwhile, overseas demand declined by 6.5 percent, with the index at 83.6. Annual figures painted a less optimistic picture, with overall order intake down 5.6 percent compared to 2023. Domestic orders fell by 3 percent and foreign orders dropped by 7.5 percent.

Rosa noted that while the Q4 results are encouraging, the sector continues to face hurdles. “The overall outcome of the order collection regarding 2024 is among the most disappointing ones in the last few years: we had a worse result only in 2020,” he said. He attributed the limited annual decline to steady foreign business for most of the year.

Concerns for 2025 include weak domestic demand and a slowdown in key export markets. Rosa highlighted uncertainties in the global landscape, particularly regarding potential policy shifts with Donald Trump’s return to the U.S. presidency. The U.S. remains Italy’s largest export market for machine tools, and Rosa emphasized that “Made in Italy” products are well-positioned to support the U.S. manufacturing sector. However, uncertainties around tariffs and currency fluctuations pose risks and opportunities.

Further complicating the outlook are difficulties within Europe, such as Germany’s economic struggles, automotive sector issues and geopolitical tensions with China and Russia. To counter these challenges, Ucimu has launched initiatives like “Oficina Italiana de Promoción México” to strengthen ties with high-potential markets.

On the domestic front, Rosa sees hope for a recovery as new regulatory simplifications under the 5.0 industrial plan take effect. He urged the Italian government to develop a new policy framework that supports digital and technological innovation in manufacturing.

“Under these premises and considering that 2025 coincides with the conclusion of the measures 4.0 and 5.0, we would like to point out to the government authorities that a new industrial policy plan must be conceived right now to accompany the digital development of the Italian manufacturing industry,” Rosa emphasized, signaling Ucimu’s readiness to collaborate with authorities on future industrial policies.

The coming year is expected to be pivotal for the Italian manufacturing industry as it seeks to balance opportunities for growth with an increasingly complex global environment.

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