Italian Machine Tool Order Rises: UCIMU
In the first quarter of 2014 the machine tool index of orders, issued by the Studies Dept. of UCIMU-SISTEMI PER PRODURRE, registers a 15.2% increase when compared with the January-March period of the previous year. The index absolute value is 152.9, above the average for the period, taking into account 2010 as the new year of reference.
The result is due to both the positive response collected from manufacturers across the border, and an awakening of the Italian market.
As far as exports are concerned, the index shows a 5.7% increase when compared with the same period of the previous year, confirming the positive trend recorded starting from the last quarter of 2013. The index absolute value for the January-March period has reached 166.5.
As far as the domestic market is concerned, the index of Italian manufacturers shows an marked increase, +79.3%, when compared with the first quarter of 2013, with an absolute value of 127.1.
“The quarterly survey issued by the Studies Dept.,” said Luigi Galdabini, president of UCIMU-SISTEMI PER PRODURRE, “shows a general recovery in the demand for Italian machine tools, with the increase appearing more evident on the domestic market”.
“If” continued Galdabini, “after a period of stall, the foreign market had already started showing an increase in investments in the Made in Italy of the sector at the end of last year, it is only now that domestic Italian demand seems to be wakening up. This is a great signal, that must however be interpreted taking into account that the increase appears so marked because it is set against such a negative period, which we now hope is finally behind us.”
The reversal in the trend of domestic demand should also be further spurred by the New Sabatini Law, which entered into force on March 31st, and which during the first session of applications collected 2010 financing requests, for investments in capital goods equal to 655 million euros.
“The implementation of the New Sabatini Law – so strongly advocated by UCIMU – will certainly contribute positively to investments in capital goods. However, it will not be enough, on its own, to ensure the recovery of the Italian market, which has for too long suspended the acquisition and the replacement of high technological performance machinery. In this respect, we really hope in the introduction of the depreciation liberalisation system, or at least in the review of the coefficients, still today at the level of 1988, which could give a further push to the purchase decisions of the end users”.
“But besides specific measures for the sector, and aware of how scarce the available resources are, we ask that the government authorities pursue the set objectives with determination, starting from all those activities for the reduction of red tape, which would free companies from those ties and burdens that are today particularly penalising, as far as the capability of the manufacturing system of the country to compete against foreign manufacturers is concerned. I am thinking mainly of labour costs, on which the executive must intervene significantly, so that the reduction of taxation can bring advantages both to the companies and their employees, but I am also thinking of the reform of the legislation for the protection of creditors”.
“As far as the foreign markets are concerned,” concluded Galdabini, “considering the strong predisposition for export of our companies, mainly small to medium sized, and therefore with limited resources to allocate to marketing, it would be important to increase the activities for the promotion of the Made in Italy, which thanks to collaborations among sector associations and the ICE Agency can help, amongst other things, to present the industrial sectors in which Italy excels in a compact and organic way”.
