Italian machine tool orders drop by 23.7% in Q1 2023, says UCIMU

Machine tool orders processed by the Economic Studies Department & Business Culture Centre of UCIMU-SISTEMI PER PRODURRE saw a significant drop of 23.7% in the first quarter of 2023 compared to the same period in 2022. The index stood at 125.1. The decline was due to a reduction in the order intake in both domestic and foreign markets. Orders from overseas markets declined by 22.9%, with an index value of 125.9. On the other hand, the domestic order intake fell by 24.1%, with an absolute value of 124.8.

The utilisation of production capacity by Italian machine tool manufacturers exceeded 86% in the first quarter of 2023. Several companies nearly reached 100%, and the order portfolio reached a new high of 8.6 months of guaranteed production.

Despite the slowdown in order intake, Barbara Colombo, president of UCIMU-SISTEMI PER PRODURRE, said that the companies are performing well. Barbara Colombo expressed optimism regarding LAMIERA, the exhibition for the sheet metal forming and cutting sector, taking place in Milan in a few weeks. He believed that the event would confirm their confidence.

Barbara Colombo recognized reduced order intake domestically and internationally, urging companies to prioritize long-term strategies. She urged Italian manufacturers to increase their internationalization efforts. She specifically emphasized this with the launch of the enterprises’ network project in Vietnam.

The decline in the domestic market order was due to rescheduling of investments to the previous quarter. This was done to secure the 40% tax credit incentive, which would be halved in the new year. Colombo sees Italian market's investment potential and ongoing industry modernization, fostering confidence in its investment prospects.

Barbara Colombo proposed a modular tax incentive system to bolster the manufacturing industry's future, with combinable benefits. The program should have three different tax credits. These credits are for investment in state-of-the-art digital production technologies, machines integrated to create a system implementing the two value chains, and actions that lead to an integrated development of new generations of products. The tax credits should take into account the impact in terms of environmental footprint.

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