How is the woodworking machinery market doing in Italy? Here is an analysis of industry trends and forecasts for 2024!
After a decidedly good 2023, among the best in the last 10 years, the Italian woodworking machinery and tools market showed a slowdown in the first quarter of 2024.
According to the recent ACIMALL (Association of Italian Manufacturers of Woodworking Machinery and Accessories) survey, conducted on the basis of a statistical sample representing the entire industry, there was a 3.5 percent growth in production compared to 2022. Foreign orders fell by 10.2 percent, while, on the Italian market, the decrease recorded was 14.5 percent.
The woodworking machinery sector in Italy is showing excellent health, evidenced by a 5.3 percent increase in 2022 compared to the record year of 2021.
Production value reached a new all-time high of 2,740 million euros, signaling investment and consolidation of company positions in both domestic and international markets.
Exports account for about 70 percent of the total and grew by 7 percent (1,935 million euros), while domestic sales are down 4 percent (805 million euros) and imports are down 7 percent (270 million euros).
- The physiological decline in the woodworking machinery market
- The key players of the future: automation and digitalization
- A revolution called Industry 5.0
- New machinery for digitized manufacturing
Physiological decline in the woodworking machinery market
The decline in apparent consumption of 4.3 percent, to 1,075 million euros, is considered a physiological decrease, however, highlighting strong domestic demand for woodworking and furniture technologies.
Italy remains the world's fourth largest market in this business, preceded by China, the United States and Germany, but surpassing Vietnam. In 2023, the wood technology sector will register a trade surplus of 1,665 million euros, 9.3 percent more than in 2022, contributing significantly to the national trade balance and machine tool production.
As mentioned earlier, the trend, according to industry analysts, should be considered physiological and transitory because the market has outlined technological trends that will compulsorily contribute to its gradual but inexorable recovery.
The road to digitization of production, for example, has already been traced, and its development, which will involve more and more companies, from the largest to the smallest, will still take several years before it can be called finished.
The investments made in recent years by manufacturers of furniture accessories and wooden furniture have all gone in the direction of making their companies more competitive in the market. It was decided to take this path in order to meet the steadily increasing demand for differentiated, unique and customizable products.
Key of the future is between automation and digitization
The shift away from mass production in favor of mass customization, which has characterized all manufacturing sectors over the past decade, has been a real revolution for the woodworking machinery market.
These changes have driven technological innovation toward maximum flexibility of production systems and reduction of processing cycles.
This ongoing trend has led to the development of easy-to-program automated multitasking machines that eliminate precision errors and downtime due to moving the component to be machined from one machine to another.
Again with the goal of producing wooden furniture elements and furniture more efficiently and economically, there is an increasing use of robotics from machinery to company logistics. One example is the increasing use of collaborative AGV (Automated Guided Vehicle) robots to simplify the flow of materials within factories, considered among the enabling technologies of Industry 5.0.
Also, thanks to the use of robotics, the surface finishing stages of wood products are becoming increasingly integrated into the overall production system.
A revolution called Industry 5.0
In recent years, the Italian market has been influenced by policies to support investment, with significant prospects for the season ahead as well.
The measures of the “Industry 5.0” plan under the PNRR - National Recovery and Resilience Plan, approved by the European Commission, aim to accelerate the transition to clean energy and reduce consumption.
The new national facilities support investments complying with “Industry 4.0” connectivity and integration standards, promoting more energy-efficient results also in the field of woodworking machinery.
During the 2024-2025 biennium, companies will have access to funds of 6.3 billion euros through the tax credit, supplementing “Industry 4.0” facilities.
This may have influenced the recent contraction, as many companies wait for the new measures to be fully operational before investing further. However, more stable policies would have more lasting effects on demand.
New machinery for digitized manufacturing
According to a survey conducted during the LIGNA 2023 exhibition, it appears that 60 percent of visitors were interested in Industry 5.0 while about 90 percent said they were interested in purchasing products related to the value line. This line, according to LIGNA's survey, is related to the reuse of reconditioned machinery.
This thus brings a second life to woodworking machinery by moving toward an eco-friendly market.
Digitization has therefore become a strategic choice not only for companies that want to invest in new process controls and management but also to continue to guarantee a very high level of product quality thanks to the efficiency of the new technologies available.
For the wood and furniture supply chain, Industry 5.0 is a challenge to be met in the best way that will also involve the workforce of the future. Observers estimate that by 2020 the supply chain will need about 24,000 new professionals with new skills and training adapted to these new production paradigms.
Despite this, there is reason for cautious optimism, especially ahead Xylexpo 2024, the international woodworking technology fair, which offers opportunities to seize management innovations and more efficient consumption.
