Exports Support Growth of Italian Graphic and Paper Machinery Industry

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According to Acimga, the Italian manufacturers association of machinery for the graphic, converting, and paper industry, "it’s too early to talk about recovery. However, in a scenario where the domestic market is stagnant and international competition is increasingly aggressive, the predominant outlook for the graphic and paper machinery industry—one of the leading segments in Italy’s instrumental mechanics industry—is optimistic." A survey conducted by Acimga regarding market performance in the fourth quarter of 2013 and forecasts for the first quarter of 2014 shows that exports and export-generated revenues are growing, thus offsetting the protracted difficulties in the domestic market and keeping employment levels stable. In addition, expectations for the first quarter of this year are positive.

Acimga represents a sector producing more than EUR 2 billion in revenues, 83% of which are generated by exports. It employs 7,000 people in about 150 companies, 90% of which are small- and medium-size.

The qualitative market survey, conducted on a representative sample generating 82% of total revenues, clearly shows exports as companies’ main strength: 48% of companies report an increase in exports in the fourth quarter of 2013, 40% report stability, and only 12% report a drop. These results are expected to replicate in the first three months of 2014, with substantial stability (48%) and a greater number of companies expecting growth (32%) compared with those expecting a decrease (20%).

This data is supported by order performance on foreign markets, which shows an upward trend at the end of 2013 and is expected to remain stable (48%) in the first quarter of 2014, with a clear predominance of positive forecasts (44% compared with 8%) from market operators. The international scenario, traditionally very receptive to Italian products, looks interesting for the coming months, especially in Far East markets, in Middle-East countries like Iran, and in the recovering U.S. market. Conversely, it is less promising in Latin American countries compared with the past.

Export performance offsets a critical domestic market, curbed by the liquidity crisis that causes even those companies interested in investing to be extremely cautious. The domestic market was substantially stagnant in the last portion of the year (46% of companies report stability, the remaining sample is equally divided between increase and drop), with optimists having a slight margin in the forecasts for the first quarter 2014. The same holds true for domestic orders, again with a predominant positive outlook for the beginning of 2014. Nearly 80% of sample companies report stable employment levels.

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