Ucimu Reports Strong Domestic Recovery in Q1 2025 Machine Tool Orders, Despite International Headwinds

According to the latest data from Ucimu-Sistemi per Produrre, the Italian association representing machine tool manufacturers, the first quarter of 2025 showed an 8.5% increase in overall machine tool orders compared to Q4 2024, driven entirely by a sharp rebound in domestic demand.

The order intake index rose to 84.5 (base year 2021 = 100), with Italy’s domestic market leading the recovery. Orders in Italy surged by 71.5% year-on-year, reaching an index value of 94.5 — nearly returning to the levels seen during the high-performing year of 2021. Meanwhile, foreign orders declined by 18.2%, with an index value of 74.4, reflecting growing geopolitical and economic uncertainty overseas.

Riccardo Rosa, President of Ucimu-Sistemi per Produrre, remarked:
“2025 has begun with a positive shift in order volumes, especially at home. After a very difficult 2024, this is a welcome signal — but global instability and economic concerns remain a serious challenge for Italian manufacturers.”

Domestic Investment Driven by Transition 5.0

According to Rosa, the dramatic increase in Italian orders is largely attributed to clarifications around the Transition 5.0 incentives, which removed uncertainty and triggered a release of pent-up demand for digital and green technology upgrades.

“Once companies understood how to apply the measure, their intentions quickly translated into real orders,” Rosa said. “Demand in Italy is still dynamic and focused on modernising production infrastructure.”

However, with only 11% of the allocated €6.3 billion in Transition 5.0 funds currently utilised, Rosa emphasised the importance of clearer, more accessible policy design, referencing the success of the earlier Industry 4.0 programme.

He called for urgent government action to provide visibility on the remaining €2.2 billion in tax credits available for 2025, warning that without this clarity, the current domestic momentum could slow as manufacturers run out of time to implement purchases.

International Markets Pose Growing Risk

On the international front, Ucimu’s report paints a less optimistic picture. Rosa cited mounting concerns including geopolitical tensions, the sluggish European economy, the global automotive downturn, and political unpredictability — particularly the potential return of Donald Trump and associated tariff threats.

“The level of uncertainty is unprecedented,” Rosa said. “As entrepreneurs, we must diversify and intensify our presence in high-potential markets.”

Ucimu is actively supporting its members with targeted internationalisation programmes, including Oficina Italiana de Promoción México, Desk India, Desk China, and the ITC and IMT Networks in India and Vietnam. Upcoming exploratory missions to the Balkans are also planned to help Italian manufacturers gain a foothold in emerging regions.

Rosa concluded:
“To remain globally competitive, our companies must not only innovate technologically but also expand into new geographies. Ucimu will continue working to support this dual mission.”