In the fourth quarter of 2024, machine tool orders saw a significant increase of 11.4% compared to the same period in 2023, according to the latest data from UCIMU-SISTEMI PER PRODURRE Study & Business Culture Centre. Despite the overall positive result, there remain several challenges for the sector moving forward.
Key Q4 2024 Insights:
- Domestic Orders: Increased by 33.3% compared to Q4 2023 (index value: 58).
- Foreign Orders: Fell by 6.5%, with the index standing at 83.6.
- Annual Trends: Total order collection was down by 5.6% compared to 2023, driven by a 3% decline in domestic orders and a 7.5% decrease in foreign orders.
UCIMU President Riccardo Rosa's Outlook:
Riccardo Rosa, President of UCIMU, commented on the mixed results, stating, "The data for the fourth quarter is positive, but we face great challenges. Once the decrees to implement the simplifications for 5.0 are in place, we are confident that internal demand will regain momentum."
Rosa also reflected on the industry’s broader struggles: "While foreign markets showed some promise in 2024, the overall result for the year remains one of the worst in recent years. The decline was partially offset by foreign market activity, which performed well for a good part of the year."
He also expressed concern about the future, noting that weak domestic demand, combined with a slowdown in foreign markets, may continue to pose difficulties in 2025. Rosa mentioned, “The geopolitical context adds further uncertainty, especially with shifts in the global political landscape, such as Trump's return to the international stage and Europe’s ongoing challenges.”
Focus on Internationalization and Future Growth
Despite the challenges, UCIMU is actively working to support Italian companies through initiatives like the Oficina Italiana de Promoción Mexico, launched in late 2024, which aims to strengthen Italy’s presence in key international markets.
On the domestic front, while there has been some improvement in recent months, Rosa emphasized that significant progress is still needed: “We are hopeful that once the 5.0 simplifications are in place, domestic demand will truly regain momentum.”
Looking Ahead: The Need for a New Industrial Policy
As 2025 marks the end of the 4.0 and 5.0 initiatives, UCIMU calls on government authorities to immediately begin planning a new industrial policy that supports the digital transformation of Italy’s manufacturing sector. According to Rosa, this policy should focus on encouraging investment in the latest-generation production systems, including those that integrate artificial intelligence, data management, and training systems.
“We are ready to engage with the government on this crucial issue,” he concluded.
