Italy losing ground: Wood technology sector falls to €2.4 billion

The Italian woodworking and furniture manufacturing technology industry is going through "complicated" times. Preliminary data for 2024 shows the impact of the "uncertainties" that have long affected the real effectiveness of "Industry 5.0" measures, together with the lasting consequences of the Russian invasion of Ukraine and the Israel-Palestine conflict, combined with the stagnation caused by the exceptional demand of previous years.

According to a preliminary assessment by the research office of Acimall, the Confindustria member association representing companies in the industry, production in 2024 amounted to €2.43 billion, 8.3% less than in 2023.

This reduction has affected both exports (1.7 billion, down 7.8%) and domestic demand (730 million, minus 9.5%), along with a sharp fall in imports (180 million, minus 40.2%), demonstrating that Italian supply can "dominate" technology demand.

This last figure actually "supported" the trade balance (€1.52 billion, down by €1.5% compared to the final balance sheet in 2023), while apparent consumption stood at 910 million, 17.9% less than the previous year. These figures place Italy at the top of the European and global rankings for wood technology demand.

Market situation

"The situation is certainly not a positive one." said Acimall director, Dario Corbetta. "The industry is suffering from a temporary suspension of reality, first from the Covid outbreak, then from the stimulus that has postponed our industry's structural problems for two years. The causes of this scenario are well known: labor shortages, slow generational change, and all the challenges facing the mechanical manufacturing industry, not to mention the geopolitical tensions that have inevitably impeded exports to some markets."

Export trends

In the first nine months of 2024, United States (129 million, minus 3.6% compared to the same period in 2023), France (122 million plus 22%) and Germany (92 million, minus 1.3%) topped the Italian customer ranking, followed by Poland (74 million, minus 5.4%), Spain (56 million plus 7%), United Kingdom (46 million, minus 28.7%), China (45 million plus 16.8%), Sweden (38 million, minus 11.5%), Turkey (35 million plus 21.4%) and Belgium (32 million, minus 13.4%).

The evolution of exports to China and Turkey is of particular interest, as both countries have experienced strong growth in the production of woodworking machinery in recent decades and have become competitors to watch.

"The fact that Italian manufacturers can strengthen their role in these markets not only demonstrates the quality of Italian technology, but also shows that advanced technology makes the difference, although for Turkey we should consider possible triangulation to other destinations," Director Corbetta added.

Competitiveness in global markets

Italy continues to play a leading competitive role in global markets. In the January-September 2024 ranking of wood and furniture technology exporting countries, China remains in the lead with €1.827bn in exports, 7.2% more than the same period in 2023. Second place is occupied by Germany (1,807 billion, minus 12,4%), and the third of Italy (1.138 billion, minus 7.6%).

Import situation

At global level, United States were the largest customer for global suppliers, purchasing wood supply chain machinery and plants from overseas for a total value of €1.782bn, down 0.8% from the first nine months of 2023. In second place, Germany (635 million purchases from abroad, minus 8.2%), followed by Canada (486 million plus 8.4%).

Regarding Italy's main suppliers between January-September 2024, the first place in the ranking was occupied by Germany by €48 million (minus 48.5%), followed by China (23 million, minus 3,7%) and India (9 million, minus 49.8%).

The data shows that despite the current difficulties, Italian woodworking technology continues to be appreciated globally, especially in competitive markets such as China and Turkey.