In the third quarter of 2023, the index measuring machine tool orders, compiled by UCIMU-SISTEMI PER PRODURRE’s Economic Studies Department & Business Culture Centre, showed a notable 19.9% decrease compared to the same period in 2022. This decline, reflected in an absolute index value of 63.7 (base year 2015=100), stemmed from reduced order intake both domestically and internationally. Foreign orders experienced a modest 1.7% decrease, resulting in an index value of 96.2, while domestic orders plummeted by 45.1% to an index value of 24.

Barbara Colombo, president of UCIMU-SISTEMI PER PRODURRE, remarked, “The data underscores the ongoing negative trend observed since the beginning of the year, influenced by various factors.”

Regarding the domestic market, Colombo noted the anticipated decline in new order collections following a period of heightened demand. She emphasized the importance of completing the digital transition within the Italian manufacturing industry, particularly in light of new European directives on sustainability and green manufacturing.

Colombo highlighted the uneven distribution of industry transformation across enterprises of different sizes and stressed the urgency of supporting this transition to maintain competitiveness. She welcomed proposed measures in the 2024 Budget Package aimed at incentivizing domestic production and enhancing competitiveness.

Furthermore, Colombo called for strengthening competitiveness measures outlined in Plan 5.0 and urged swift action by government representatives at the EU level to secure funding for the RepowerEU Plan.

Regarding foreign orders, Colombo pointed out stable intake levels, particularly in North America, which serves as a crucial export destination for Italian manufacturers. However, she expressed concerns about global market instability arising from conflicts in the Middle East and urged attention to emerging markets in Asia, where Italian SMEs face greater complexities.

To support internationalization efforts, UCIMU is implementing initiatives such as the ITC India business network, operational for eleven years, and the newly established IMT network in Vietnam, aimed at facilitating market penetration in the Southeast Asian region.

Original source from machinesitalia.org