Italian Machine Tool Industry Sees Significant Decline in 2024, Modest Recovery Expected in 2025

Italy’s machine tool, robotics, and automation sectors faced a difficult year in 2024, according to Ucimu-Sistemi per Produrre, the Italian machine tool manufacturers’ association. Preliminary data shows a significant downturn in most economic indicators, and the association does not expect a substantial recovery in 2025, although a weak trend reversal is anticipated.

Production in 2024 amounted to 6,745 million euros, reflecting an 11.4% decrease compared to the previous year. The sharpest drop came from the domestic market, where deliveries plunged by 33.5%, totaling just 2,255 million euros. Domestic consumption also saw a dramatic fall, down 34.8% to 3,795 million euros. Additionally, imports dropped by 36.5%, totaling 1,540 million euros.

However, the performance on international markets was more positive, with Italian manufacturers seeing a 6.3% increase in exports, which reached a record high of 4,490 million euros—an all-time best. Ucimu’s president, Riccardo Rosa, highlighted that despite the struggles at home, Italian manufacturers were able to maintain strong export performance, particularly in the United States, where exports grew by 17.8% to 419 million euros.

Data from the Italian National Statistics Institute (ISTAT) for the January-August 2024 period revealed the following key export markets for Italian machine tools: the USA, Germany, China, India, and France. While the USA and India showed significant growth, with increases of 17.8% and 100%, respectively, other markets like China and France saw declines. Overall, exports accounted for 66.6% of production, reflecting Italy’s growing reliance on foreign demand.

Looking ahead, Ucimu projects that production will slightly increase in 2025, reaching 6,940 million euros, a 2.9% rise compared to 2024. Despite this, Mr. Rosa described 2024 as a “completely lost year” for the industry, noting that efforts to salvage the year through international sales were ultimately unsuccessful. He expressed concern over potential new tariff policies in the US, which could impact future export activities.

The Italian machine tool sector’s most pressing concern, according to Mr. Rosa, remains the domestic market, which has struggled to recover after a sharp decline. He also raised alarms about the European Union’s plans for an electric transition in the automotive industry, citing factory closures and mass layoffs as potential triggers for a wider social and economic crisis, particularly in Italy. He called for stronger action from industrial representatives to address these challenges before it is too late.