ISMR September 2021 | Page 7

Positive indicators for Italian machine tools

GENERAL NEWS

In 2020 , the Italian manufacturing industry of machine tools , robots and automation systems reported a considerable fall of all main economic indicators . Nonetheless , it was able to maintain its fourth place among manufacturing / exporting countries and its fifth place in the ranking of consumer countries .
However , according to order index data and year-end forecasts from UCIMU- SISTEMI PER PRODURRE ( the Italian machine tool , robots , automation systems and ancillary products manufacturers ’ association ), the first few months of 2021 have underlined the recovery of business activity , in Italy and overseas . This was confirmed recently at its annual members ’ meeting .
“ In 2020 , the output of machine tools , robots and automation systems recorded a 20.4 % fall versus 2019 . This was due both to the reduction of manufacturers ’ deliveries on the domestic market , down by 20.3 %, and the export downturn ( 20.5 % lower than in the previous year ). In 2020 , Italian machine tool consumption collapsed by 26.6 %, continuing the negative trend which started in 2019 ,” the association told ISMR .
In 2020 , the main export markets for Italian machine tool products were the United States ( -11.3 %); Germany ( -23.1 %); China ( -26.1 %); France ( -32.2 %); Poland ( -17.2 %); Turkey (+ 29 %); Russia ( -16 %) and Spain ( -34.1 %).
Strong recovery indicators
“ However , the first few months of 2021 are showing signs of a strong recovery . Based on our forecasts , the output of
ITALIAN MACHINE TOOL , AUTOMATION AND ROBOT INDUSTRY
VALUES ( in Millions Euro )
2017 2018 2019 2020 2021 * 2018 2019 2020 2021 * Production 6.085 6.775 6.510 5.182 5.745 11,3 % -3,9 % -20,4 % 10,9 %
Exports 3.385 3.663 3.599 2.861 3.130 8,2 % -1,7 % -20,5 % 9,4 %
Deliveries on domestic market
2.700 3.112 2.911 2.321 2.615 15,2 % -6,5 % -20,3 % 12,7 %
Imports 1.764 2.052 1.944 1.240 1.335 16,3 % -5,3 % -36,2 % 7,6 %
Consumption 4.464 5.164 4.855 3.561 3.950 15,7 % -6,0 % -26,6 % 10,9 %
Trade balance 1.621 1.611 1.655 1.621 1.795 -0,6 % 2,8 % -2,1 % 10,7 %
Import on consumption
Export on production
39,5 % 39,7 % 40,0 % 34,8 % 33,8 %
55,6 % 54,1 % 55,3 % 55,2 % 54,5 %
* Forecast . Centro Studi UCIMU-SISTEMI PER PRODURRE / Studies Department UCIMU-SISTEMI PER PRODURRE marzo 2021
machine tools , robots and automation systems should grow by 10.9 % to 5.7 billion euros . Exports should reach 3.1 billion euros i . e . 9.4 % more than the previous year . Consumption should also increase , reaching almost four billion euros , corresponding to a 10.9 % rise versus 2020 . The dynamism of Italian demand should drive the deliveries of manufacturers , expected to reach 2.6 billion euros (+ 12.7 %) and imports , which should reach 1.3 billion euros (+ 7.6 %),” explained the association .
“ In the first half of 2021 , the index of orders highlighted an 88.2 % upturn . This was due to strong performances recorded by manufacturers in domestic and overseas markets . In particular , domestic orders grew by 238 % compared to January-June 2020 ; overseas orders recorded a 57.5 % upturn versus the first half year of 2020 ,” it continued .
Barbara Colombo , President of UCIMU- SISTEMI PER PRODURRE , expects this trend to culminate in October in the run-up to the international EMO MILANO 2021 exhibition .
“ There are unfortunately two factors that may undermine the ongoing recovery : on the one hand , the increased costs of raw materials and , on the other , the scarcity of electronic components . The risk – which we cannot afford to run – is that these two phenomena may slow down the positive cycle of investments , especially in the domestic market , where Industry 4.0 incentives are [ facilitating ] good results ,” she explained .
“ The machinery upgrade and digitalisation process , that started about five years ago , cannot stop as there is much still to do . The results of our
CURRENT PRICES survey presented in June are evidence of this ,” she added .
From 2015-2019 , 60,000 new machine tools were purchased versus 39,000 new machines purchased in the previous five-year period . Besides the increased number of machines , there was a qualitative improvement in total
Above : Barbara Colombo , President , UCIMU-SISTEMI PER PRODURRE .
machinery . More than 60 % of the 60,000 new machines are CNC machinery . There was also an increase in the automation and integration level of machinery . IT integration , relating to Industry 4.0 policies , registered the most significant rise .
“ Digital transformation and technological upgrades mainly concerned large and midsized companies . Small-sized companies made investments in new technology , but only to a limited extent . Nevertheless , it is clear that it will take longer for smaller companies to keep up with this transformation than bigger ones . There are at least two reasons for this : the first is linked to available funds . Investment in new production technologies , especially in the latest equipment , are very onerous and weigh on the budget of small companies , which must consequently spread their purchases over longer periods . The second , no less important , reason is related to culture : it takes time to understand all the mechanisms connected with this transition and overcome the fear of thinking about reorganising a way of working ,” commented Barbara Colombo .
“ This data and observations prove the effectiveness of the provisions included in the plans for Italian industrial policy . They also confirm that incentive measures , such as tax credits for machinery upgrades and investments in Industry 4.0 technologies , should not only continue across 2022 but should also become structural ,” she added .
UCIMU has also called for tax credits for employee education and training in Italy to be simplified and extended , especially for young people in the sector . It has also asked for available SIMEST funds to be awarded as easy-term financing and non-repayable grants for manufacturer participation in international trade shows , as well as for funds to be made available to the ICE- Italian Trade Agency for overseas exhibitors participating in exhibitions held in Italy . n
ISMR September 2021 | sheetmetalplus . com | 7