Economic figures Italian machine tool sector faces downturn in Q3 2023

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In the third quarter of 2023, Italy's machine tool sector reported a significant decrease in orders, hitting an index value of 63.7, according to the Economic Studies Department & Business Culture Centre of Ucimu-Sistemi per Produrre.

According to the Economic Studies Department & Business Culture Centre of Ucimu-Sistemi per Produrre, the Italian machine tool sector experienced a notable downturn in the third quarter of 2023, with orders down 19.9 percent compared to the July-September period of the previous year. The absolute value of the index fell to 63.7, with the base year set at 2015=100.

This decline was attributed to a fall in new orders, both at home and abroad. Non-domestic new orders experienced a relatively small decline of 1.7 percent, with the absolute value of the index standing at 96.2. However, new domestic work fell sharply by 45.1 percent, reducing the absolute value to 24.

Barbara Colombo, President of Ucimu-Sistemi per Produrre, commented: “These figures confirm the negative trend we've been observing since the beginning of the year, influenced by various factors”. She noted that the drop in domestic orders was not unexpected and correlated with a general decline in demand following a period of increased activity. Colombo highlighted the ongoing digital transformation of the Italian manufacturing sector, stressing the need to complete it in line with new European directives on sustainability and green manufacturing.

Colombo highlighted the uneven distribution of this industrial transformation among companies of different sizes and underlined the importance of supporting this transition through appropriate measures. She welcomed the inclusion of some economic incentives in the draft 2024 budget package, but called for stronger measures to boost competitiveness, pointing in particular to the stalled Plan 5.0.

On the international front, Colombo described foreign orders as “essentially stationary”, showing a more stable trend compared to domestic orders. She particularly mentioned the United States as an important export destination and a counterbalance to weaker demand from Asia and Europe.

However, Colombo expressed concern about instability arising from the conflict in the Middle East and the resurgence of Islamic terrorism, noting the potential for increased market uncertainty. To mitigate these challenges and support the international expansion of Italian machine tool companies, mainly small and medium-sized enterprises (SMEs), Ucimu has launched new initiatives and business networks in India and Vietnam.

In her concluding remarks, Colombo emphasised Ucimus commitment to helping companies in their internationalisation efforts, ensuring support and facilitating market access in complex regions, with a particular focus on helping SMEs overcome these challenges.

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