Ceramic machinery: a less severe downturn than expected in 2003

Dec 11, 2003

11/12/03 - The Italian ceramic machinery industry has closed fiscal 11/12/03 with a downturn. Preliminary estimates point to a fall in total turnover in the region of 3-5%, down to 1,380-1,400 million euro compared to the 1,452 million euro of 2002.
Nonetheless the decline is less severe than suggested by forecasts a few months ago which predicted a likely fall in the region of 8-10%.

"Things have gone better than expected," announced Franco Stefani, chairman of Acimac (Italian Ceramic Plant and Machinery Manufacturers' Association). Commenting on the negative figure (2003 is the third negative year running for the sector), he confirmed that the most substantial fall in demand for ceramic machinery is in the European market. "

"Italy and Spain, the largest European tile producers and second only to China," Stefani explained, "already have a production capacity that is higher than the real potential of the end market, and in Spain in particular effective production is already being reduced.
"These markets are now saturated in terms of quantities and we will have to make product or process innovations if we are to boost sales in the future."

The fall in Europe has been partly offset by a strong sales performance in the Middle East (particularly Iran), Eastern Europe and Asia (including China). And on the strength of the positive signs emerging from these areas, Stefani believes that a recovery in the sector is very probable, even as early as the first half of 2004.

"We are seeing great dynamism amongst ceramic producers in countries like Vietnam, Thailand, China and Iran," he continued, "Major investments in new plants will be made during coming months for the purpose of increasing production. Russia is another market with good growth prospects."

As for competition from China, currently limited to the Chinese domestic market, Stefani acknowledges the problem and proposes a solution for beating the new competitors.
"I am far from pessimistic," says Stefani. "The price gap between Chinese and Italian plants is gradually closing as the Chinese manufacturers realise that quality is expensive and are forced to raise their prices.
However, I am convinced that the only way for the Italian companies to overcome this competition is by going beyond the current levels of technology and offering the market ever more innovative and cutting-edge solutions, thereby forcing competitors to enter a technological race."
So research and innovation remain the keys to the Italian ceramic machinery industry's recovery in 2004. According to Acimac's Chairman, the Italian companies are perfectly capable of achieving this recovery in spite of the fact that the recent years of recession have forced the smaller companies to make considerable sacrifices and accept increasingly small margins.

"The ideal opportunity for checking whether we have succeeded in surpassing the current technological proposals," concludes Stefani, "will be the next Tecnargilla in Rimini in October, the world's most important exhibition in the sector. Competitors from other countries will also be present, so the market will be able to make comparisons and choose."

The in-focus section contains a table with the turnover figures for the Italian ceramic machinery industry in the period 2000-2003stefani1.jpgItalian ceramic machinery industry's turnover 2000-2003fatturato2003_acimac.pdf