The year 2024 marked one of the toughest periods for the Italian machine tool industry in recent memory. Domestic demand collapsed, production plummeted, and capacity utilization took a hit. Only exports provided a silver lining, with a modest 1.2% increase—enough to set a new export record at €4.273 billion. Despite the difficulties, Italy held its ground as the fifth-largest global producer and fourth-largest exporter in the sector.
2024: A Year of Contraction
According to data from UCIMU’s Economic Studies Department, total production in 2024 fell by 16.9% to €6.327 billion. Domestic deliveries dropped by nearly 40%, and overall consumption shrank by 36.3%, reaching just €3.707 billion. Imports followed suit with a 31.8% decline.
Meanwhile, foreign markets provided a lifeline. Exports—led by strong growth in markets like India (+58.3%), Sweden (+71.4%), and Spain (+21.1%)—helped stabilize the industry. The United States remained the top export destination with €629 million worth of Italian machine tools (+10.9%).
2025: The Road to Recovery?
UCIMU forecasts a slight recovery for 2025, with production expected to rise by 2.6% to €6.49 billion. Exports should again set a record, climbing 1% to €4.315 billion. Domestic consumption is projected to grow by 5.5%, with deliveries and imports both expected to rise moderately.
However, UCIMU President Riccardo Rosa emphasized the need for caution: “Now more than ever, we must use the conditional mood,” he stated, referencing ongoing geopolitical instability, trade wars, and global economic uncertainty.
Policy, Incentives, and Global Competition
Rosa highlighted the critical role of state incentives such as Italy’s Transition 4.0 and 5.0 schemes, which have historically supported technological advancement within SMEs. But with Germany—Italy’s primary industrial benchmark—gearing up for its own industrial stimulus, Rosa urged the Italian government to act swiftly and decisively.
“If Germany restarts, we must be ready to remain part of its production chain,” Rosa warned. “This requires structural measures that allow companies to plan investments without the risk of missing out due to production delays.”
Rosa also addressed the unintended consequences of incentive-based purchasing, where long lead times for made-to-order Italian machinery can lead to lost orders, with buyers opting for quicker-imported alternatives.
Geopolitics, Automotive, and Tariffs
The geopolitical landscape, particularly in the Middle East and surrounding the U.S. presidential race, has created considerable uncertainty. While the United States remains a strong market, Rosa pointed to the potential ripple effects of new tariffs and military instability, both of which threaten investment in manufacturing technologies.
A major concern lies in the future of European automotive manufacturing. “We must maintain technological neutrality in powertrain choices,” said Rosa, urging the EU to consider the economic and social impact of a rapid shift to electrification. “We are risking the desertification of a vital industrial sector.”
Workforce and Skills Development
Concluding his address, Rosa stressed the importance of skilled labor to operate increasingly advanced machinery. UCIMU has expanded its UCIMU Academy initiative, aimed at bridging the talent gap through collaborations with high schools, universities, and technical institutes.
“Machines can only go so far,” said Rosa. “It’s people who ensure innovation continues. We must invest in them.”
As Italy’s machine tool sector cautiously steps into 2025, the message is clear: resilience, innovation, and foresight will be key. With the right support, Italy can not only recover but strengthen its position in the global industrial ecosystem.
