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News Release from: UCIMU
Edited by the Manufacturingtalk Editorial
Team on 20 December 2004
Italian machine tools makers are
positive
The estimated final figures for the machine tool, robotics and automation sector in 2004 are preceded by a positive sign and domestic demand is rising.
The estimated final figures for the machine tool, robotics and automation sector in 2004 are preceded by a positive sign The outlook for 2005 has been revised upward owing to the increase in domestic demand
This article was originally published on Manufacturingtalk on 30 Mar 2005 at 8.00am (UK)
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According to Alberto Tacchella, president of UCIMU-Sistemi per Produrre, "the data confirm the positive trends on the international markets, which began to demonstrate their ability to drive the sector in 2004.
We should see a reversal in the trends for the domestic market in 2005 but the absolute values are still fairly low".
Estimated final figures in 2004, processed by the Studies Dept.
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of UCIMU-Sistemi per Produrre, reveal a slight recovery in the Italian machine tool, robotics and automation sector, driven exclusively by the international markets.
Production posted a 2% rise (at current prices), ending the year at EUR 4,110 million, thanks to the good performance of exports, whose value reached EUR 1,985 million with a 7.2% rise over the previous year.
Italian manufacturers propensity to export increased more than two percentage points to 48.3%.
The bottom line of the trade balance is positive at Euro 990 million, posting an increase of 12.6% compared with the value in 2003.
Foreign trade data relating to exports of machine tools only in the first eight months of the year show the good performance of exports compared to a year earlier, especially on several of the buying markets.
Sales within the European Union reported a rise of 8.2%, mainly owing to the improved economies of the traditional buying markets for Italian products.
Other European countries also reported an increase, of 36.7%, chiefly influenced by increasing sales to Russia (+69.1%) and Turkey (65.3%).
In contrast to the 16.4% decline in sales posted in North America and the 24% loss in Latin America, exports to the Asian markets posted a rise of 32.7% with respect to 2003, absorbing 19.8% of total exports of the Italian machine tool, robotics and automation industry (higher by 3.5% on a year earlier).
Looking at the domestic market, the 0.9% decrease in consumption to EUR 3,120 million also influenced sales by Italian manufacturers, which have fallen by 2.4%, ending the year at EUR 2,125 million.
In spite of this decline, Italian products continue to hold an important share of 68% of national purchases of production systems.
The figure related to imports is up by 2.4%, which have ended the year at EUR 995 million.
The reversal of the negative trend posted in 2004 should be confirmed in 2005.
According to forecasts, production should increase by another 5.1%, rising to EUR 4,320 million.
This result will be determined by the continuing good performance in exports, expected to rise by 6.3% to EUR 2,110 million and the increase in sales by Italian manufacturers on the domestic market, which will show a positive sign again (+4%), ending at EUR 2,210 million, driven by a recovery in national sales (+3.7%, EUR 3,235 million in absolute figures).
Imports are expected to rise to EUR 1,025 million (+3%).
The trade balance should also increase to EUR 1,085 million (+9.6%).
The propensity to export is expected to rise to 48.8%.
Alberto Tacchella, president of UCIMU-UCIMU-Sistemi per Produrre, had this to say about sector figures: "The estimated final figures in 2004 confirm the recovery on the international economies, which has allowed our manufacturers to end the year on a positive note, despite the continuing doldrums on the domestic market.
While exports to the United States and the dollar zone have taken a step back because of the strength of the Euro, we find that our manufacturers have managed to hold their own on the traditional buying markets and at the same time, have successfully seized the opportunities offered by the emerging markets, chalking up a positive sign on performance on the closest markets, as well as those farther away".
"For the domestic market ? remarks Tacchella ? the year 2005 should mark a reversal in the trends in Italian purchases of machine tools and production systems.
Though still under-performing, in terms of absolute values, the sector is expected to regain some of the footing lost in the past few years.
We hope that this signal can be indicative of an improvement in the Italian production system.
However, to fuel it, we need government measures that will stimulate investments and reinforce competition of the industry through support to innovation.
In respect of this, we welcome the recent reduction in the IRAP tax in favour of research activities, a measure that we consider a step in the right direction toward eliminating a tax that penalizes companies.
However, we are disappointed by the Italian governments failure to liberalize amortization and depreciation allowances, a measure that would encourage small businesses to overhaul their machine fleet and bring improvements to the production processes, while at the same time, stimulate development and expansion of the manufacturing industry of production equipment.
As regards the international scene, our companies have begun to forge alliances and consortia that allow them to be more competitive and more visible on the foreign markets.
Therefore ? concluded Tacchella ? it is increasingly important to be able to count on the strong, consistent and tangible support of the country system, which can promote internationalisation and the presence of our companies in geographic areas more interesting for Italian production".
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