According to preliminary figures for the January-November period, 2008 should close with a slight shrinkage. In the past three years, Italian production of woodworking machinery and tools has remained basically unchanged, around 1,850 million Euros. 80% of this value is represented by export, with a positive result for the trade balance largely above 1,300 million Euros.
However, the coming months cause real worries, in view of the significant drop of orders in the 3rd quarter 2008, which got even worse in the final quarter. The economic situation is quite complicated and it will certainly affect the industry turnover in 2009.
ITALIAN WOODWORKING MACHINERY: 2008 PRELIMINARY DATA
Tools included, in million Euros
| 2008 | ∆% 08/07 | |
| Production | 1,825 | -2.2 |
| Export | 1,531 | -0.1 |
| Import | 199 | +8.7 |
| Apparent consumption | 493 | -4.6 |
| Trade balance | 1,332 | -1.3 |
| Export/production | 83.9% | |
| Import/apparent consumption | 40.4% |
Source: Acimall Studies Office, February 2009, based on Istat’s Jan-Nov 2008 figures.
ACIMALL TREND SURVEY: FOURTH QUARTER 2008
The trend survey for the fourth quarter 2008, based on a statistic sample that is representative in terms of company size and product range, shows a reduction of orders by 38.8 percent (-39.2% abroad, -37.8% in Italy), as compared to the same period of 2007.
In 2008, prices increased by 1.3%, whereas the months of ensured production, at the end of the year, were 1.8 approximately.
According to the quality survey for the initial months of 2009, 63% of the interviewed companies indicate a declining production trend, 30% expect substantial stability while only 7% see margins for further expansion.
Employment is considered as stationary by 50 percent of the sample, decreasing by 47 percent and increasing by “only” 3 percent. Available stocks are stable according to 47 percent of the sample companies, decreasing for 30 percent and increasing for 23 percent.
According to 67 percent of the sample, foreign orders will suffer from further shrinkage, while 33 percent expect substantial stability. No company sees an increase of orders in the near future (negative balance -67). Similar opinions were given for the domestic market.
Therefore, there is no denying that the global economic trend will bring heavy consequences to the woodworking technology industry. Pessimism already emerged in the July-September 2008 period was confirmed, and in 2009 the situation can only get worse.
“How can we survive this sort of ‘’ice age’’ of economy that has struck the global industrial system?”, asks Ambrogio Delachi, President of Acimall, the association of Italian woodworking technology manufacturers.
“Unlike what happened in the past, today it is impossible to know when this trend will be over. With no end in sight, it is very difficult for companies to plan the necessary actions to overcome the current situation.
The lack of an effective policy to support the mechanical industry, combined with a longstanding inability of the banking system to meet the needs of our companies, certainly does not make things easier. Once again, then, we have to rely almost exclusively on our entrepreneurial spirit.”
“Anyway, it is our duty to analyze our mistakes as well – adds the Acimall President – and learn the lesson to avoid repeating them. We must be fully aware that, at the end of this negative cycle, we will find ourselves in a radically changed environment; therefore, our companies and the way we run our business should also have changed radically.”
