The Italian machine tools, robots and automation manufacturing industry performed below expectations in 2013, with substantial drops in production, export, consumption and delivery on the domestic market, reported UCIMU-SISTEMI Per Produrre, the Italian Machine Tools, Robots and Automation Manufacturers' Association.

Still, the Italian machine tool industry was able to outperform South Korea and regain the fourth place in the worldwide producers' ranking as well as to confirm its position as the world's third biggest exporter.

In particular, production went down 7% to 4.487 billion euros. This result was influenced by a drop in exports, down 6.5% to 3.385 billion euros, and by a further drop in consumption, down to 2.047 billion euros, down 2% on a year-on-year basis.

A weakened domestic demand had a detrimental impact on Italian producers' deliveries that went down by 8.5%, reaching 1.103 billion euros. Imports went up 6.8% to 944 million euros. The export/production ratio grew to 75.4%. The share of consumption covered by imports increased by four percentage points from 42.3% in 2012 to 46.1% in 2013.

This is the snapshot of 2013 that President Luigi Galdabini presented at the UCIMU yearly meeting, attended by Enrico Zanetti, undersecretary at the Ministry of Economy and Finance and Marco Fortis, economist and Vice-president of the Edison Foundation.

Back to growth in 2014

Forecasts by the UCIMU Studies Department underline that, following the end of 2013, in 2014 the Italian machine tools industry will find its way back to growth.

According to forecasts, in 2014 production will go up 4.4% to 4.685 billion euros. Exports will increase by 4.7% reaching 3.545 billion euros. Italian consumption will be back on a growth path with a 3.3% increase to 2.115 billion euros, thus providing Italian manufacturers' deliveries with much needed stimulus expected to result in a 3.4% growth to 1.140 billion euros.

Imports are expected to grow (+3.3%), with the import/consumption ratio set to remain stable. The export/production ratio will continue increasing to 75.7%.

As to export figures, in 2013 China confirmed its position as the first and most important end market for the Made in Italy of the sector, followed by the US, Germany, Russia, France and Brazil. The latest figures available, concerning the period going from January to March 2014, highlight a recovery of foreign sales, up 2.1% compared to the first quarter of 2013.

Germany is back leading the ranking as the biggest end market, following a 17.6% year-on-year increase in the purchases of Italian machine tools, followed by China (-16,3%) and the US (-11%), both suffering big slackening. Good performance for France (+30.2%). Russia (-5,8%) and India (-35.3%) close the top positions of the ranking.

"Against an unflattering European backdrop, Italy is experiencing a particularly tough stage that doesn't seem to be completely over yet," says Mr. Galdabini in his remarks. "The Italian economy is still too static and stuck, thus risking to further damage the manufacturing industry in the country which basically stopped investing in production machinery in 2008."

"We welcomed the entry into force of the new Sabatini law which has been providing some momentum to Italian consumption of machines in the three months since its introduction, even though figures are still weak. Moreover, we look forward to the implementation of the measures contained in Decree Law no. 91 that was published in the Official Gazzette last week and allows companies to take advantage of tax credits up to 15% of the total value of investments in machinery delivered by the 30th of June 2015," says Mr. Galdabini.