Italian Machine Tools Orders Continue to Rise

The absolute value of the index, equal to 90.1 (base 2005=100), manages to approach pre-crisis levels thanks to the excellent feedback expressed by foreign demand. The domestic market, on the other hand, does not take Italian manufacturers up on their offer.

According to data compiled by the Studies Dept. of UCIMU-SISTEMI PER PRODURRE, the association of Italian machine tools, robots and automation manufacturers, the index of orders placed in foreign markets has increased by 44.5% compared to the period of April-June 2010, for an absolute index value of 102.

Different situation with regard to the index of orders for the domestic market which marks a fall of 33.8% with respect to the same period of the previous year, for an absolute index value of 59.2%

On a six-monthly base, the increase of order intake amounted to 16.3% (for an absolute value of 101.5) compared to the period of January to June 2010, thanks to the increase in foreign orders which rose by 37.4%, balancing out the decrease of internal orders, which fell by 19.5%.

“The quarterly survey which extends the positive streak recorded from the start of 2010 – states Giancarlo Losma, president of UCIMU-SISTEMI PER PRODURRE – is certainly comforting. Our factories have now begun to return to productivity levels close to those reached previous to the crisis”.

“However, what is worrying is the large gap between orders received from domestic and foreign markets that is widening gradually and constantly. This trend, which today seems irreversible, is explained by not only the weakness in domestic demand but also by the decision of Italian manufacturers to give precedence to the foreign market, to the disadvantage of the domestic market”.

“We are witnessing, in essence, a clear shift of our businesses towards those areas that appear more interesting in terms of profitable business activity and appreciation of our supply. Due to this, the decision of removing ICE, the Italian Institute for Foreign Trade, seems to be short sighted, because although requiring clear reorganisation, it was the right tool to support the internationalisation of Italian businesses”.

“However, it is clear, with the data we have, that in Italy the supply of Italian manufacturers is undermined by the proposal of foreign competitors. Standardised production, medium quality and reasonable pricing are just some of the requests made by Italian users and the reason why for manufacturers it is less rewarding. These trends – added Losma – denote a dangerous change in the characteristics of the manufacturing industry of the country to medium-low standards”.
 
“In order to avoid the risk of impoverishing our industry – concluded the president of UCIMU – government authorities need to carefully consider what measures to implement in order to sustain, if not develop, the national entrepreneurial structure. In this regard, we stress the need that the implementation decree relating to Article 23 (Paragraph 47), regarding the recently approved finance plan should envisage the liberalisation of depreciation of capital goods. In essence, we ask that no sort of obligation in terms of time frame is included in the depreciation of the goods, this instead should be decided by the user”.