What is the capacity of Italian capital goods on the international scene? And what are the challenges that await the sector in the coming years?
Centro Studi Confindustria and Federmacchine try to answer these questions through the report “Ingenium”.
The report, in its first edition, lists the critical issues associated with the international scene, characterized by price increase of raw materials, from growing international (war and economic) tensions, From 'rising inflation and the worrying impact of interest rates on investments. The negative trend is also reflected in the slowdown in global growth and on the diffusion of restrictive monetary policies, clear signs of a marked increase in uncertainty on the global scene.
How do you deal with such a scenario?
Italy must and can focus on “highly sophisticated exports of capital goods [...], which are distinguished by the'intensive Automation, Creativity and Technology”. The so-called ACT industrial machines are characterized by a high degree of precision, obtained through the increasingly pervasive use of electronics. These capital goods also facilitate the adoption of tailor-made solutions and the growth of the number of services in the sales offer. ACT machinery includes 202 product categories to be divided into 12 sectors, among which stands out that of glass machines and accessories.
The growth of Italian capital goods
Despite the geo-political and economic instability, "in 2022, Italian companies in the ACT industrial machinery sector recorded an improvement of more than 14% on the average for the three-year period 2019-2021 at current prices". A result that sees us excel over France and above all over Germany, Italy's first competitor in almost all advanced markets.
The Italian ACT export is worth approx 28 billion euros and mainly involves United States, Germany, China, France and Spain as importing countries. In fact, this group represents more than 33% of the entire amount of Italian world exports of capital goods.
More could be added to the 28 billion euros 16 billion of exploitable potential, with export values equally distributed between advanced and emerging countries, despite the fragility of the economies of the latter.
Between obstacles and potential
The ACT Capital Goods Survey ties into the crucial challenges permeating the future of the economy: digital and ecological transition, andservitization. Two dynamics that intersect, as demonstrated by the concept of Industry 5.0, and which must be promoted to stand out from competitors and protect the competitiveness of Italian companies on international markets. In fact, the assessment of a company's performance is no longer measured on its ability to make a profit, but on the so-called triple bottom line, which equally assesses the economic, environmental and social dimensions.
The buzzwords within the Italian sector of capital goods are therefore servitization, sustainability, innovation, and investment in data and information collection; a strategic operation, the latter, to increase profitability and intercept new customer needs.
Finally, in such an uncertain context, it is crucial strengthen existing trade agreements, such as those with European Union countries and the United States, and lay the foundations for new relationships in order to guarantee "the correct performance of [commercial] activities even in highly complex conditions".
Source: "Ingenium - The potential of Italian capital goods on the international scene" (2023 report)
