UCIMU Highlights Q4 Order Decline in Italy

Cinisello Balsamo, Italy – In the fourth quarter of 2025, the machine tool order index, compiled by the Economic Studies Department & Business Culture Centre of UCIMU-SISTEMI PER PRODURRE, recorded a 13.6 percent downturn compared to the period October-December 2024. The absolute value of the index stood at 68 (base year 2021=100).

On the domestic front, orders highlighted a 2.9 percent decrease over the fourth quarter of 2024, for an absolute value of 56.3. The decline was even more significant in relation to the orders collected overseas, showing a 17.1 percent fall compared to the same period last year. The absolute value of the index was 69.3.

On an annual basis, order intake remained positive thanks to the increases reported in the first three quarters, thus achieving +3.1 percent (absolute index 67.6) compared to the 2024 figure; +38.9  percent domestic orders, (absolute index 55.1); -9.4 percent foreign orders (absolute index 76.4).

Riccardo Rosa, President, UCIMU—the Italian machine tool, robots, automation systems, and ancillary products manufacturers’ association—pointed out, “The overall outcome of the order collection regarding 2025 is in line with that of the last two years and thus disappointing once again.”

“With particular reference to the last quarter—added Rosa—it seems clear that the business slowdown in foreign markets was not offset by a substantial recovery in the domestic market.”

“On the domestic front, the results prove that the 5.0 plan did not work as it should have. Of course, the measure, together with 4.0, partially stimulated demand on the market, but the numerous starts and stops made everything disjointed and not very smooth until its conclusion in December.”

“Presently—continued Rosa—we are awaiting the implementing decrees for the new measure that will accompany investments in new technologies from now until 2028. Italian companies have high expectations with regard to this measure, especially due to its duration, which enables users to better plan their purchases, thus also allowing for a more effective and efficient distribution of production activity in our enterprises. However, we believe it is essential that the decrees are issued very quickly so that we can operate immediately with clarity, supporting demand at a time when the international scenario is putting a strain on the industrial systems of traditional economies.”

“Turning our gaze abroad, the context of great uncertainty caused by geopolitical instability is a factor that heavily affects the performances of our companies. On the foreign front, they are having many business opportunities precluded. Ongoing conflicts, Trump’s trade strategy with continuous backtracking on tariffs, the crisis in the automotive industry and in Germany, and the closure and inaccessibility of certain markets, such as Russia and China, are seriously limiting what has always been one of our strengths, namely our export activity.”

“In this connection—stated Rosa—we warmly welcome the recent signing of the free trade agreement between the EU and India, a country with enormous potential for development and growth. Indeed, Italian manufacturers of machine tools, robots, and automation will surely be able to take advantage of this potential in the best way. After all, with €135 million in exports (in the first nine months of 2025, the latest data available), India is currently our fourth largest export market. We believe that the treaty just signed, together with the revocation by the Indian Ministry of Heavy Industries of the ‘Omnibus Order’, which should have come into force at the beginning of 2026 and would have required a mandatory ‘Bureau of Indian Standards’ (BIS) license for importing industrial machines, will give further impetus to our business in the area.”

“On the contrary—added President Rosa—we consider the decision to submit the EU-Mercosur agreement to the Court for assessment a serious blow to the manufacturing industry and, in particular, to the Italian machine tool industry, which has always paid close attention to emerging markets or markets with fluctuating trends, such as those in the area. Many of those countries, especially Brazil, represent potentially interesting markets for our companies, whose high quality and customized product offerings are extremely appreciated by local users. Therefore, it is necessary to act as soon as possible to implement the agreement, which would also exempt our sales from many customs duties currently in force.”

“Also owing to this agreement, over the last two years, the Association has expanded its initiatives dedicated to Latin American countries. In addition to the exploratory missions in Brazil, organized to strengthen the partnerships with the local system of institutions, companies, and representative organizations, UCIMU has started interesting discussions and exchanges of views with Argentinian industrial representative organizations in preparation for new collaborations between the industries of the two countries. Moreover, we have not overlooked the so-called ‘associated countries’ and ‘observers’ linked to the agreement, as we are confident that these will also offer Italian manufacturers interesting opportunities. Among the Mercosur associate members, we have focused our attention on Chile, where, following a survey mission, a project is being studied to develop a Technology Center. On the other hand, among observers, our focus is on Mexico, where, since the beginning of 2025, the Oficina Italiana de Promotiòn Mexico has been operating as a desk that works to support Italian companies in learning about and penetrating the relevant market, also concerning the area of Central and North America.”

“We cannot allow—concluded the UCIMU President—the great potential of companies and the work carried out by organizations such as ours to be nullified by a completely senseless decision. The competitiveness of the European manufacturing industry is at stake.”

Image Source: UCIMU