Machine Tool Orders Start Rising Again

Giancarlo Losma: “we ask for the extension of Tremonti-Ter measure till the end of the year. It seems that the elimination of the tax relief measure on profit reinvested is a sentence without appeal for all the businessmen who demonstrated will and power of endurance and survival in these months ".

“Companies trust in the future, this is demonstrated by the data related to the participation to BI-MU, the leading trade fair scheduled for October in Milan, that counts, up to today, about one thousand exhibitors. It is necessary that government authorities demonstrate that they believe in the industrial fabric of the country".

The index of machine tool orders returns positive and in the first quarter of 2010 it marks a 15.2% increase, compared to the same period of the previous year, with an absolute value of the index equal to 94.8 (base 2005=100). This emerges from the data drawn up by the Studies Dept. of UCIMU-SISTEMI PER PRODURRE, the association of Italian machine tools, robots, automation and auxiliary technologies manufacturers.

After six consecutive quarters of drop, the turnaround, that in the last period of 2009 was only sensed, is now gaining substance. In fact, differently than what emerged by the previous survey (related to the fourth quarter of 2009), the recovery of collected orders concerns both the internal and the foreign markets.

With reference to the foreign market the index of orders collected by Italian manufacturers highlights a 18.5% increase compared to the same period of the previous year.

Due to this, the absolute value of the index is 106.9. Although a moderate recovery is noticed, the absolute index is still below the value registered in the first quarter of 2005; in other words, after the crisis, the index of orders collected on foreign markets went back to the level registered five years ago.  The comparison with the two-year period 2007-2008, on the other hand, clarifies the intensity of the orders collection drop: the absolute index of the first quarter of 2010 in fact is 40% less compared to the values expressed in the two-year period prior to the crisis.
 
With reference to the domestic market, the growth trend that manufacturers already noticed at the end of 2009 is continuing. The index of orders destined to satisfy the internal demand, in the first quarter of 2010, grows with a 10% rate compared to the same period of the previous year. For this reason the absolute index is 70.1.

“These data – stated Giancarlo Losma, president of UCIMU-SISTEMI PER PRODURRE – confirm that the turnaround, that we businessmen are aware of from the last November, took place. Particularly encouraging is the success achieved in foreign markets. The index related to abroad orders is finally going back to positive numbers, confirming the positive evolution of the global context”.

“But not for that“- continues Giancarlo Losma – Italian manufacturers aren’t worried. The situation is still complex and the trap of the false re-start is around the corner. The indications arriving from the internal market confirm that the situation is improving but the fear comes from the moderate extent of recovery, a recovery that, moreover, benefits from the Tremonti-Ter measure that currently will expiry on the next 30 of June”.

“In a tricky moment like the present, at the dawn of a new economic cycle, as confirmed by the main indicators not only related to this sector, the elimination of an essential tool supporting the demand as the tax exemption measure granted to new investments is a sentence without appeal for all the businessmen who demonstrated will and power of endurance and survival in these months ".
 
“This is why we are asking the Government authorities to extend, up to the end of 2010, the Tremonti-Ter measure, sure that the tool provided will not be the only tool contributing to re-launch the demand of investments in capital goods, which are strategic to maintain the country’s industry competitive.  In this sense 27.BI-MU/SFORTEC, the event promoted by UCIMU-SISTEMI PER PRODURRE scheduled for next October at fieramilano, will play its role by recalling operators from all over the world. Companies trust in the future, this is shown by the data related to participation to the exhibition. Notwithstanding the market weakness, at the end of April about one thousand companies confirmed their participation to the event, the main appointment of the year for operators involved in the sector. These numbers are already a guarantee on how much the trade fair can do to return energy to the manufacturing industry, that last year has practically annulled the technological innovation investments”.

“Now – states Losma - it is necessary that government authorities demonstrate that they believe in the industrial fabric of the country that bets on the future by continuing in committing resources. This is the reason why the association demands to apply the Tremonti-Ter measure to production machines ordered within the 31st of December 2010 and delivered within the subsequent eighteen months from the order issuance”.

“To this - concluded Losma – I add the peremptory appeal to credit institutions so that, in their decision to grant loans, they avoid the short-sighted approach that is based only on the corporate balance sheet, that this year would penalize most of the companies. Today, it is indispensable for the sake of the country, that credit institutions demonstrate that they are looking to the future checking the plans of each company and the innovative capacity of each solution, allowing companies to grasp the recovery and preventing that the country looses know-how and competitiveness”.

“Basic element for maintaining our companies’ competitiveness is the technological innovation – stated Alfredo Mariotti, general manager of UCIMU-SISTEMI PER PRODURRE -. For this purpose we would like Italy to follow the lines identified by the German minister of economy Rainer Bruederle who, at the opening ceremony of Hannover Messe, affirmed that the intention of the German nation is to take within 2020, the investment in research and development up to 10% of the national GDP. On the other hand – concluded the general manager of UCIMU –companies and reference associations do much in terms of R&D, an example is the area that UCIMU-SISTEMI PER PRODURRE will arrange inside LAMIERA, the event dedicated to the metal forming technology sector scheduled for the next May in Bologna. Identified with the RTDI IN FORMING mark, the area will highlight the profits and opportunities of cooperation between companies, universities and research centres, giving evidence to what the sector companies are already doing completely alone".