Italian Machine Tool Q1 2007 Orders Rise

Italian Machine Tool Q1 2007 Orders Rise In the first quarter of 2007, the index of machine tool orders, calculated by the Studies Dept. of UCIMU-Sistemi per Produrre, registered a 26.2% increase versus the same period of 2006, reaching an index value of 122.8 (base 2000=100). Such outcome has been determined by the good trend of the inland market, as well as by the positive performances achieved in the traditional and emerging foreign markets. In particular, the orders received by the Italian manufacturers on the domestic market have grown by 41.6% compared with the same period of 2006, recording an absolute value of 103.5. Owing to this increase, at last the index of home orders is again on the levels of 2000, making up the ground lost during the crisis related to the economic situation started in 2001. On the foreign front, the orders are continuing their positive trend, showing a 15.4% growth versus the period January-March 2006, attaining an absolute index value of 142 (record value). 'Such results,' stated Alberto Tacchella, president of UCIMU-Sistemi per Produrre, the Italian machine tools, robots and automation Manufacturers' Association, 'Are attesting a progressing recovery, a recovery that should, however, be supported through targeted actions by all economic parties, so that it can be transformed into a real structural recovery.' Tacchella continued: 'In particular, a recent study conducted by the Association on the analysis of the sector enterprises' balances in the period 2003-2005, pointed out that especially the small-sized enterprises have most suffered from the crisis involving the worldwide economic system, to such an extent that many of them have not yet completed their recovery phase'. 'In this sense, concrete measures are needed that must grant stability and soundness to enterprises and thus to the sector of production systems intended as a whole, a sector which must be considered a keystone in the Italian industrial system.' He added: 'Now, our companies - have to face two critical factors. On one hand they have a reduced cash flow, on the other hand they are too small to be able to efficiently meet the growing demand.Therefore, we ask the banks not to hinder the development of the sector in such a delicate moment. The entrepreneurs of production systems ask them to operate in a flexible way, on the basis of a long-term period and in consideration of the great development potential that the Italian enterprises can exploit, apart from the rules and requirements provided for by Basilea 2.' Tacchella said: 'While positively considering the regulation included in the financial law aiming at fostering merger and agglomeration processes, we ask the Government authorities to carry on a rapid action to really put this regulation into operation. In this connection, a law is needed that must have a clear content for everybody and be immediately applicable'. 'This has not yet been done and for this we request a decisive intervention.' On the other hand, UCIMU-Sistemi per Produrre has always been acting to develop and support instruments capable of increasing the competitiveness level of the sector enterprises. For example, the private equity fund, 'Wise Equity II - Fondo Macchine', promoted by Federmacchine and supported also by UCIMU-Sistemi per Produrre, was especially created for the enterprises of the capital good sector and, up to now, it has collected EUR 170 million. Another example is the agreement stipulated with an important bank in the last few days, aiming at supporting the machine tools, robots and automation manufacturing enterprises in their internationalization process. Besides these initiatives, directly promoted by the Association, UCIMU-Sistemi per Produrre favourably judges all instruments aimed at this purpose such as, for example, the stock exchange quotation on Espandi Market, a market that is completely new for its characteristics, closer and more suitable to the needs of the small and mid-sized enterprises, and MAC, a sort of alternative capital market which can be used as a replacement or in addition to investment funds.