Federmeccanica, 2019 production dropped 3%. Devastating effects from coronavirus – Economy

In 2019 metalworking production had an average decrease of 3% compared to 2018 with heavy decreases for instrumental mechanics (-2.8%), for metal products (-4.4%) and in particular for the automotive sector which lost about 10% of its production. This can be read in Federmeccanica’s economic report released today. In the last quarter of 2019, production decreased by 1.3% in volume compared to the previous quarter and 4.6% in comparison with the same period of the previous year.

The short-term weakness facing the metalworking industry – with the spread of Coronavirus “added an unexpected emergency, which can have devastating effects”. This was stated by the president of the association, Alberto Dal Poz, commenting on the economic report on the performance of the sector. “To the immediate productive and economic consequences deriving from the blockage of many direct and indirect activities to manage the emergency – he underlines – there is a serious reputational damage for Italy and its companies. Some foreign countries are blocking the flows of products, they cancel meetings with salespeople or ask for improbable virus-free certifications just because we are Italian. To avoid irreversible consequences it is essential to immediately return to normal. At the moment it is difficult to quantify the negative effects that however, inevitably, will occur in the entire economy and in particular for the engineering sector “.

The production levels of the metalworking sector in 2019 are 27.6% lower than in the pre-recession period (first quarter 2008) and Italy ranks in comparison with the main countries of the EU area in last position. This can be read in Federmeccanica’s economic survey which speaks of “a particularly serious situation considering also the difficulties of the European metalworking industry”. The information that derives from our survey, conducted before the spread of the coronavirus epidemic – says President Dal Poz – already did not suggest an improvement in the sectoral situation in the short term. The stocks of raw materials and finished products were in excess of company needs, the order backlog showed a worsening just as the six-month employment expectations foresaw a reduction in the number of employees. Today all the already worrying indicators risk having to be revised in very pejorative terms “.