Decrease In Machine Tool Orders In Third Quarter 2019 - Asia Pacific Metalworking Equipment News | Manufacturing | Automation

Decrease In Machine Tool Orders In Third Quarter 2019

In the third quarter 2019, the UCIMU index showed an 18.6 percent fall of machine tool orders compared with the same period of the previous year. The absolute value of the index was 69 (basis 100 in 2015). The overall outcome was due to the negative trend registered both in the domestic and in the foreign markets.

In particular, the orders collected by the manufacturers in the domestic market highlighted a 19.3 percent downturn compared with the period July-September 2018. Even on the foreign front, the manufacturers registered a considerable reduction in their orders, down by 14 percent versus the third quarter 2018.

Massimo Carboniero, President of UCIMU-SISTEMI PER PRODURRE, stated: “Unfortunately, 2019 has confirmed to be a year of contraction for the Italian manufacturers of machine tools, robots and automation systems, who experienced a drop both in the domestic and in the foreign markets.”

“The trade conflict between the two economic powers, (the United States and China), the recession of driving sectors for the manufacturing industry, (principally the automotive), and the outbreaks of war in hot spots of the world make the activity of the manufacturing enterprises particularly complicated and the future decidedly uncertain.”

In this scenario, already complex in itself, the Italian industrial system risks being even more penalised by the still undecided attitude of the Government authorities, engaged with the definition of the Budget Law 2020 and with the allocation of the (scarce) resources available.

“Now more than ever, our country needs a plan that can support the investments and development of the manufacturing industry, which is also the real “activator” of employment. In this connection, the reduction of tax wedge to the benefit of employees is appreciable, provided that it has an appropriate economic coverage. However, this is not enough,” said Carboniero.

An overall package of provision for the enterprise growth should be implemented, with the aim of encouraging the continuation of modernisation and transformation within Italian factories to improve the country’s competitiveness. The Package for the Enterprise Growth should include all tax benefits related to Research & Development and to Super- and Hyper-Depreciation for the investments in new machinery, software and automation, and for the technologies related to environmental issues.

Furthermore, a programme of professional education and training 4.0 should be planned also for 2020, which can allow staff updating according to the new requirements of digitalised factories. Currently, tax credit is calculated only on the costs of the personnel involved in professional education and training for the refresher hours attended. On the contrary, the tax credit should be reviewed in such a way as to include the cost of teachers and trainers, the most onerous expense item especially for a SME.

“We ask the Government authorities to plan a special action to support the creation of enterprise networks for the study and analysis of specific areas or sectors of destination. Preparatory to the definition of the trade activity, the projects concerning the study and analysis of a particular market are often onerous and thus difficult to bear for a SME. In this connection, an enterprise network certainly represents a valid solution to this need,” concluded Carboniero.

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