EXPORT: ITALY WORLD LEADER IN MACHINERY, 16 BILLION POTENTIAL

Beltrame: a system policy is needed to accompany companies in foreign markets

Rome, 31 May 2023 - There are 16 billion export potential for capital goods characterised by automation, creativity and technology. The possibility of expanding exports of these highly sophisticated machines is equally distributed between advanced and emerging countries, to the tune of around 8 billion each, thus suggesting that companies should increase their market shares in both areas. These are the figures from the first edition of Ingeniumthe Confindustria Study Centre Report entitled 'The potential of Italian capital goods on the international scene', presented today at the Unicredit Tower Hall and realised with the financial support of Federmacchine and the contribution, among others, of SACE for the focus on ASEAN countries and in particular Vietnam, the Philippines and Thailand, whose market represents a great horizon of opportunities for Made in Italy.

The machines included in the analysis are defined by three characteristic elements that distinguish them: automation, creativity and technology. Hence the acronym ACTwhich groups 202 product categories that Italy can leverage to face the international scenario. These include machinery with a high degree of precision, an increasingly pervasive presence of electronics over the mechanical part, agility in adopting tailor-made solutions and an increasing service content in the sales offer. For many categories of goods, Italy has a competitive advantage both in terms of the price applied for sale, and, for the same price, for higher quantities of machines sold, and not surprisingly it turns out world leader in the production of many categories of machinery.

"In the context of the major role that Made in Italy plays in the global and national economy as a fundamental asset for growth, capital goods are the strong backbone of Italian excellence exported abroad. Without them many of the consumer goods, which in our imagination represent Italy in the world such as fashion, furniture and food, would not be feasible," said Barbara Beltrame Giacomello, Vice President for Internationalisation of Confindustria. "Machinery is always one of the first items among the products sold abroad and represents a significant part of our exports. An export that the latest data shows signs of slowing down after the record levels recorded in recent years and that has sustained the competitiveness of Italian industry in an international context made extremely challenging and uncertain. All the more reason to continue betting on our Made in Italy and strive to strengthen it without letting it scare us. Also because, as we can see from these figures, there is great potential that we must be able to put on the ground with a real system policy that accompanies companies, particularly small and medium-sized ones, in foreign markets'.

"Recognised for its excellent performance, the Made in Italy sector has always ensured a decisive contribution to the country's trade balance. In fact, it is the mechanical industry, which includes the one represented by FEDERMACCHINE, that registers the largest trade surplus. Now, with the Ingenium Report, companies in the sector have one more tool at their disposal to understand how and where to orientate their offerings, considering the markets with the greatest potential, and some strategic indications for better presiding over outlet areas". He stated Alfredo Mariotti, Federmacchine secretary general.

The Report shows that among advanced marketsthose offering the greatest exploitable potential are the USA (with an estimated additional export potential of around EUR 1.7bn), France and Germany tied (EUR 600m potential), then Austria and Canada. The additional potential in the emerging is led by the Chinese market, where 52% of the total export potential of around EUR 2 billion is still exploitable. This potential in China is largely due to the size of the market. This is followed by Turkey (potential 700m) and India (600m), then Mexico and Brazil.

Italy is also among the top exporters both in terms of market share and competitiveness among international ACT suppliers. In 2020, Italy ranked fifth, behind China, the United Kingdom, Germany and Austria. The main importers of ACT machinery from Italy remain the US, followed by Germany and China.

LACT exports are worth almost 28 billion euro. The value of Italian ACT machinery exports worldwide can be divided by destination markets. Those with the greatest weight are the advanced markets, which together absorb more than 18 billion euros. The value of exports to emerging markets, on the other hand, is more limited, at just over 9 billion euros. ACT's exports grew especially in the Americas, both North and Latin America and the Caribbean, as well as on the European continent, destinations that recorded the highest growth during 2022 compared to the previous three years.

The Report also indicates the way to activate potential suggesting action on various axes for business competitiveness, such as: supporting servitisation (the provision of additional after-sales services); adopting more sustainable behaviour; favouring international treaties; stimulating innovation.