La Dolce Vita? Not for the Italian woodworking industry

While Italian movies have accustomed us to images of the sweet and relaxed life, the reality of the Italian woodworking industry seems to follow a rather neo-realist scenario. Far from the glamor of Marcello Mastroianni or the exuberance of Sophia Loren, Italian wood technology manufacturers face a less romantic story, full of economic challenges.

A bitter comedy for Italian industry

The Italian woodworking and furniture manufacturing technology industry continues to go through a difficult period, looking forward to a positive change in the economic scenario. According to a recent report by Acimall, the association of Italian woodworking equipment manufacturers, the sector is facing a prolonged phase of reduced orders, which has now lasted for nine consecutive quarters.

Post-pandemic return to normality: An "Italian-style divorce"?

This market contraction is a direct consequence of the extraordinary growth experienced by the industry in the post-pandemic period. The sudden return to "normality" has pushed economic indicators back to pre-pandemic levels, with no clear signs of improvement so far. There seems to be a dramatic "divorce" between industry and the post-pandemic economic boom.

Dario Corbetta, director of Acimall, urges caution in interpreting the data: "We should not give in to pessimism, as values remain at significant levels. Certainly, the current international situation does not encourage companies to adopt an optimistic outlook that would lead them to reconsider investments in capital goods, but the Italian industry remains an excellence of national supply."

The defining figures: A modern-day "Ladro di biciclette"?

Acimall's quarterly survey for April-June 2024 reveals the following:

• An overall reduction in orders by 2.8% compared to the same period in 2023
• International orders remained steady
• Domestic orders recorded a further decrease of 5.9% compared to the previous year
• Order backlog reduced to a workload of 2.9 months
• Prices have increased by 0.9% since the beginning of 2024

Outlook for the near future: In search of a "Cinema Paradiso"?

The qualitative survey of companies in the sector provides a nuanced picture of expectations in the short and medium term:

•  451TPTP3T of companies surveyed anticipate substantial stability in production
• 50% provide for an additional discount
• Only 5% expect growth

In terms of employment, 80% of respondents expect a stable trend, while 20% fear a possible decline.

Looking at the markets, opinions are divided:

•  For the domestic market, 50% see stability, 5% growth, and 45% fear a downturn
• For the international market, 50% predict stability, 35% anticipate a worsening and 15% hope for stronger demand from the rest of the world

Waiting for a "Nuovo Cinema Paradiso"

Although the Italian woodworking technology industry is going through a period of uncertainty, there are also grounds for moderate optimism. The adaptability and innovativeness of the sector, together with the recognized excellence of Italian manufacturers, offer hope for an eventual recovery. It remains to be seen how global economic conditions will evolve and how companies will respond to the current challenges to revive this vital sector of the Italian economy. Perhaps we will soon see the premiere of a "Nuovo Cinema Paradiso" for Italy's timber industry.