Luigi Galdabini, President, UCIMU (The Italian Machine Tools, Robots and Automation Manufacturers’ Association)
What are the current trends in the European machine tool industry?
The needs and the trends of the European machine tool sector are constantly analysed by CECIMO, the European association that brings together the main category associations, among which is UCIMU-SISTEMI PER PRODURRE, of which I am the president. Through the comparison and the dialogue among the representations, CECIMO tries to understand what the sector needs, and activate the necessary actions, so that these needs are met. The most important new introduction for next year for the European manufacturers of machine tools is “Horizon 2020”, the new framework program of the European Community, which includes a useful funding plan for relaunching the industrial sector in Europe. Compared with previous plans, the programming of the European structural funds for the 2014-2020 period shifts its interests from infrastructures to technological innovation, and brings manufacturing back to being the main focus point for the European Union, offering SME new opportunities for development.
What is the current market size of Italian machine tool industry? What per cent of the total production goes for export?
As shown by the preliminary data processed by the Studies Department of UCIMU-SISTEMI PER PRODURRE, in 2013 production reached 4,780 million Euros, resulting significantly stable when compared to the previous year. Exports were once again the driving force of the sector. Stable at 3,615 million Euros, -0.2% when compared to that in 2012, they absorbed 75.6% of the total Italian production. Numbers place Italy in fifth position in the international manufacturer standings, and third in line as exporters.
What are some of the unique qualities of the Italian machines? Approximately what per cent of revenue is dedicated for R&D?
Creativity, intelligence, innovation and profiling are the characteristics that makes one opt for an Italian product. The technological level of Italian machine tools is similar to that of the main competitors. However, what sets them apart is the high level of flexibility, achieved thanks to a close collaboration with the final customer during the whole manufacturing process. A work that although requires a great deal of effort, also results in machines that specifically meet targeted needs. On an average Italian companies invest 5 per cent of their turnover in research and development (R&D), but to this one should add all the investments, which are difficult to quantify, that Italians make to customise their machines based on the requests of the customers.
How do you tackle the current situation looking at the not-so-good economic situation in Europe?
The economical difficulty that has characterised Europe in the last few years has obviously affected the industrial sectors, with the machine tool suffering a lot due to its position as the basis of manufacturing. Signals of recovery had already arrived during the end of 2013, and for 2014-2015. Also, thanks to the new framework program “Horizon 2020”, the forecasts indicate a recovery of the whole manufacturing sector.
The automobile industry, one of the biggest consumer of machine tools is going through a tough time. What are the other emerging sectors that are capable of creating opportunities for machine tool manufacturers?
The automotive sector is certainly the most important customer sector, and its crisis has greatly impacted the machine tool sector; however, at the same time there has been an increase in the importance and the interest of new end-user sectors. Areas like biomedical and nano-technology, which add to other consolidated sectors, such as energy, transports, aeronautics and aerospace can be looked upon.
How do you see the Indian market? What are the Indian buyers looking for according to you?
Relationships are certainly extremely positive, and India is among the top 10 destination countries for the Italian industry in terms of exports. In particular, according to the latest figures, referring to the January – September period of 2013, India has purchased machine tools from Italy for a total value of 95 million euros. The Indian market is of particular interest for the Italian companies. The country is nowadays recognised as one of the big manufacturers of the world. However, it still holds great uncovered potential, which can and must be developed also in collaboration with Italy.
What are the steps taken to improve the collaboration of Indian and Italian industry?
The Indian production of machine tools is of an appropriate level for many processes, particularly for machines with an average degree of sophistication. Italy and India are in continuous collaboration with the aim to improve the competitive advantages of both parties and establish a long term policy of common objectives. As the association of the Italian manufacturers of machine tools, we maintain a presence in India with important initiatives like the “Italian Technology Center”. The new center for the promotion of the Made in Italy, with its location in Pune, promotes the ITC trademark, and the brands of 11 Italian manufacturers of capital goods that work together to develop new contacts with the institutional, cultural, and industrial sectors in India. The technology center adds another project to the association, PLATFORM INDIA, which presents itself as an actual hub, capable of providing support and expert recommendations to those interested in working in the region. The objective of the initiative is to support the companies during their internationalisation activities. For this reason, “Platform India” appointed an Indian officer, who operates on location, acting as a facilitator.
How was 2013 for the Italian machine tool industry?
In the fourth quarter of 2013, the machine tool index of orders, issued by UCIMU-SISTEMI PER PRODURRE’s Studies Dept., registered a 4.1% year-over-year increase and an absolute value of 100.6. In particular, the amount of foreign orders went up by 6% compared to the September – December period of 2012. Internally, the index records a substantial stability (+0.2%), when compared to the fourth quarter of 2012.
How do you see the year 2014 and what are your expectations?
In 2014, the production is expected to increase by 4.6%, reaching a level of 5,000 million Euros. Exports will do well, with a 4.6% increase, reaching a new record of 3,780 million Euros. Apart from these, the export/production ratio is expected to remain stable at 75.6%. After being down for three consecutive years, deliveries from manufacturers will show a positive trend: thanks to a 4.7% increase, they will reach 1,220 million Euros, driven by the recovery in domestic consumption, which will reach 2,145 million Euros, 4.4% more than in 2013.
Also imports will benefit, although at a lower level, from the increase in demand from Italian manufacturers, reaching 925 million Euros, a +3.9% increase when compared with 2013.
