Italian plastics machinery makers see downturn

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The Italian plastics and rubber industry has experienced a downturn in imports and exports of machinery, equipment and molds in the first half of 2024.

Data from the Italian National Institute of Statistics (ISTAT) shows that trade has decreased in both directions compared with the same period in 2023.

Analysis by the Italian trade association Amaplast reveals that consolidated year-end results are likely to show a contraction in revenues vs. 2023. The downturn follows record years in 2023 and 2022.

Imports

Imports were consistently lower in the early months of 2024, with drops reaching double digits in the second quarter. The first half of the year closed with a drop of 12 percentage points in comparison with the same period in 2023 to a value of €483 million. Imports from Germany, China and Austria – the industry’s main trade partners – all noticeably declined.

“This is a symptom of lower propensity to invest within a context of contraction in the economy generally and in the industrial sector specifically,” Amaplast said in a statement.

Exports

The first half of 2024 closed with exports still in the positive range with an increase of 2.5% to €1.73 billion. These data still reflect orders for complex systems, with delivery times of six to nine months or more, registered towards the end of the 2023.

Amaplast notes a diminishing trend in exports due to lower demand for a number of different types of machinery – including some making up a large share of the total – and molds.

Exports to Germany – historically the main trade partner of Italian manufacturers – have been "lackluster," Amaplast reports, while those to the United States have "slowed somewhat" after remaining high in recent years.

The data coming out of Italy supports reports from the German Machinery and Equipment Manufacturers Association (VDMA), which recorded a 22 percent drop in incoming orders in Europe during 2023.

Growth outside of EU, US

While exports to European Union countries from Italy are slowing, exports to non-EU countries are growing by the double digits. Exports to Turkey grew by 50 percent, to China by 36 percent, to Mexico by 26 percent, to the United Kingdom by 24 percent, and to India by 22 percent. On average, exports show significant growth towards the Far East, North America (excluding the United States), Europe excluding EU countries, and Sub-Saharan Africa.

Faint signs of recovery

Amaplast analysis also shows a "faint sign of recovery" in the months following a "particularly negative" first quarter of 2024. While orders are still showing a negative trend, there are quite significant differences among different technologies.

“Italian companies thus express a certain amount of concern for the performance of their industry and are very cautious in expressing expectations for the coming months in light of the negative trend in macroeconomic indicators, turbulence in the markets, and contingencies that can affect the entire industrial sector, in particular those relating to progress towards energy transition,” Amaplast said.

The European industry has been facing an energy crisis since supply of cheap Russian gas slumped after the invasion of Ukraine in February 2022. The transition to electrification has since accelerated but high electricity prices in some EU countries – where renewables penetration in the grid is still lagging – remain a major competitive disadvantage.

* Source : https://www.plasticsnews.com/news/italian-plastics-machinery-trade-experiencing-downturn