ITALY – Despite the challenges in rolling out new procedures and awaiting simplification measures, incentives for “Industry 5.0” initiatives are beginning to show positive effects, particularly in the machinery and technology sector for wood and wood-based materials, with a focus on large-scale plants.

This is the main takeaway from data for 3Q-2024, analyzed by Acimall Studies Office, the trade association representing Italian manufacturers under Confindustria.

This marks a welcome shift for the Italian market, which has experienced over two years of declining orders. The reversal of this trend brings hope for a recovery in exports, potentially lifting the total value of orders back into positive territory.

The association’s quarterly survey paints a mixed picture, showing a further 9.4% decline in orders compared to the same period in 2023. However, domestic demand saw a positive uptick of 16.1% compared to 3Q-2023, while orders from abroad dropped by 12.4%.

The order backlog now stands at three months (up from 2.9 months in the April-June period), and prices have increased by 1.6% since January 1, 2024.

Industry sentiment, as reflected in the quality survey, is fairly divided. Half of the respondents expect stable production, while the other half fear further reductions. Notably, no respondents anticipate growth. Regarding employment expectations, 20% of those surveyed predict a decline, while 75% expect stability. Only 5% are hopeful for an increase in workforce numbers. When it comes to stock levels, 65% report stability, 25% note an increase, and 10% observe a decrease.

Looking ahead, the forecast survey reveals a slightly more optimistic outlook for the domestic market: 55% expect stability, 5% foresee growth, and 40% anticipate further decline. On the international front, 65% of respondents predict stability, while 35% expect worsening conditions. Notably, no respondents believe the foreign market will improve, a stark contrast to the 15% who were optimistic about exports in 2Q -2024.