Machinery & Equipment in Italy: Preparing its comeback

Machinery and Equipment represents close to 150bn in revenue (11% of the manufacturing sector), 18% of Italian exports, and 100,000 companies. In 2014, this pivotal sector should finally get back to positive growth (+1% forecast).

The reasons for this rebound are not cyclical only. The industry is: (i) export-oriented; (ii) composed of many well-performing medium-sized companies; and (iii) banking on the district model for key sub-sectors such as packaging, automatic vending bar, and agricultural machinery. The only threat to this good news is the persisting risk of non-payment both domestically (+55% increase in the average unpaid receivable in 2014 Q1) and abroad (+45% in the frequency of unpaid receivables in Q1).