Federmeccanica: exports fall again, -4.3% year-on-year in the second quarter

“During the first six months of 2024, our country’s exports were affected by the weakness of world trade, still conditioned by the many factors of uncertainty that characterize the international context. Metalworking exports, in the period January-June of the current year, are confirmed to be negative and the quarterly trend in 2024 shows a new worsening: -4.3%, compared to the second of 2023, after the -2.0% recorded in the first”. This is what Federmeccanica reports in the 171st edition of the Economic Survey.

Overall – the analysis continues – in the first six months of the current year theSectoral exports decreased by an average of 3.2%compared to the first half of 2023, imports decreased by 6.5% while the trade balance was approximately 25.5 billion euros, higher than the 22.2 achieved in the same period last year. With reference to the destination areas, in this first half of the year, the most marked contraction was recorded in exports to the European Union (-5.5% on an annual basis), compared to those directed towards markets outside the area (-0.5%), and the decline, although it affected all our main commercial partners, was particularly affected by the collapse recorded on the German market (-11.1% compared to the first six months of 2023).

Sector in the middle of the ford

“We are in difficulty, across the board from industrial production to exports, from the comparison with the previous quarter to that with the same period last year. The effects are unfortunately visible from decrease in the number of businesses which expect to increase employment and the significant growth of the redundancy fund, both ordinary and extraordinary”. This is what the vice president of Federmeccanica, Diego Andreis, underlines in the 171st edition of the economic survey.

“The future does not bode well either, analyzing the forecasts of companies and their fears – Andreis continues in the analysis – more than 30% of companies are worried about possible interruptions of activity. Just as unfortunately it is no longer surprising to see that the concern of not finding the professional profiles that are needed is increasingly widespread. This fear coincides with the now endemic difficulties recorded in the search for personnel. We find ourselves in the middle of a ford and we need to work together, all of Europe together, to get out of it without leaving anyone behind. Our sector is caught between uncontrollable external tensions and structural problems of competitiveness. We must act in the various areas and at every level to avoid losing further ground. Everyone must do their part, we always say, we will do our part, as always”.
“Even today we are faced with reality and we are faced with many difficulties. And it is a harsh reality that we have before us”, said the general director of Federmeccanica, Stefano Franchi.

And he explained: “All the data collected clearly say it, both those from official sources and the qualitative ones that our companies have provided us. Everything adds up, it’s the numbers that don’t add up, once again. Let’s say it clearly: if our Sector doesn’t do well, everyone suffers. We observe how our negative performances have also affected those of the entire Industry. It can be said that the metalworking/mechatronics it is a true national interest, and as such it must be protected and supported. Nothing can be left to chance in any field. We cannot make any false steps, we must make a leap in quality. The goal is to return to growth, but first we must protect those in the most critical conditions. Then we must create the conditions for the development of the entire system, keeping in mind that even the details make the difference, especially in a Category characterized by extreme heterogeneity. It takes very little to generate irreparable damage. We cannot allow it and we will not allow it”.

69% of companies find it difficult to find manpower

“The share of companies that declared that they were having difficulty finding the professional profiles essential for carrying out their business activities was equal to 69%”.
With reference to the type of skills sought – it is explained – it is becoming increasingly difficult to find basic/traditional technical skills (48% of companies, the highest share in the last four years), while advanced/digital technological skills have collected 27% of the responses. The search for transversal skills (intended as the ability to solve problems, make decisions, work in a team, communicate, be autonomous) has been difficult for 19% of companies (the lowest percentage since 2021), while the remaining 6% are looking for professional figures with other specific characteristics.

The Red Sea crisis still weighs heavily

In the second quarter, the percentage of companies that are affected by the consequences of the difficulties related to maritime traffic in the Red Sea is growing, from 40% last year to the current 42%. This is what the Economic Survey reveals, underlining that in the context of the type of repercussions, 46% of respondents are affected in terms of lengthening of times, for 40% it involves an increase in costs, while 9% believe they will lose competitiveness and the remaining 4% will have greater difficulties in accessing markets.
To deal with such a complex situation, among the measures that companies have adopted or are adopting, the Inventory increase is estimated at 36% of cases, alternative modes of freight transport (train, plane, etc.) in 30%, the finding of new suppliers in Europe and/or in areas not affected by such difficulties in 29%, while in the remaining 5% the companies will adopt other solutions.