Mechanization sector, Made in Italy in growth

Italian production of tractors, other machinery for agriculture, gardening and associated components brought in sales valued at € 11 billion in 2017. The largest share was assigned to exports which reach a value estimated at about € 7.5 billion

The good trend of exports is driving the agricultural machinery manufacturers which have reported substantial production increases according to data disclosed last June in Bologna by FederUnacoma at a press conference held for the federation’s general assembly. The data on the types of machinery in the Italian Statistics Institute, ISTAT, census indicate the total of tractors at € 1,953 billion, € 59,362 per unit, for a 7% increase over 2016. Other agricultural machinery and equipment came to € 4,980 billion for a 7.4% gain. Incomplete tractors and tractors parts chalked up € 890 million for growth of 8.9% over the previous year. On this basis, overall turnover for the Italian industry came to € 7.8 billion for 7.5% growth over the 2016 figure. The share of this production of machinery and equipment for gardening and groundskeeping and the considerable components sector must be added to the overall turnover but are not deducible in the official ISTAT statistics. FederUnacoma, relying on the invoicing of the federation’s member and non-member manufacturers, calculated gardening invoices at no less than € 800 million and components at no less than € 2.5 billion. Adding the ISTAT estimate of € 3.3 for gardening, groundskeeping and components to the € 7.8 billion the overall value estimated by ISTAT comes to € 11.1 billion. A great share of these invoices is assigned to exports. In the ISTAT trade statistics this share is given the value of € 5.2 billion in 2017 with an increase of 8.6% over 2916. However, considering gardening and components with a high level of export, up to some 70% of production, adding the € 2.3 billion found by FederUnacoma takes the total value of exports in the sector to € 7.5 billion. The major markets for Italian production of agricultural  machinery are in Europe which accounted for 67.1% of total exports followed down by 8% to Asia, 5.5% to Africa and 3.4% to Oceania. At the press conference, it was emphasized that aside from manufacturing in Italy the domestic industries have given ongoing weight to industrial partnership abroad or the delocalization of manufacturing facilities abroad. This trend is linked to the globalization process and a strategy which leads many enterprises in the sector to set up facilities in markets, especially in India and China as well as the United States, Brazil and Argentina where demand for agricultural machinery is in strong growth.