FERIAS
IPACK-IMA Monitor reveals upturn in domestic demand in first half of year
The 2017 first-half figures for the Italian processing and packaging industry revealed higher-than-expected domestic revenues driven by government incentives on the purchase of capital goods. The trend is expected to continue in the second half of the year as exports also pick up.
The main risks and threats perceived by companies include increased competition, commodity prices, taxation and labour and service costs
Slower growth in exports compared to domestic Italian sales is the most significant figure to have emerged from the latest findings of the Ipack-Ima Monitor, the survey linked to the most important European exhibition in 2018 for the processing and packaging industry to be held at the Fiera Milano exhibition centre from 29 May to 1 June next year.
The half-yearly business study was conducted over a sample of companies representing the entire supply chain. The industry, consisting of manufacturers of processing and packaging machinery, suppliers of components and producers of materials, serves a range of industrial sectors divided up into a number of business communities: Food, Fresh & Convenience; Meat & Fish; Pasta, Bakery, Milling; Beverage; Confectionery; Chemicals, Home & Industrial; Health & Personal Care. The results of the survey reveal how the breakdown of sales has changed in the first half of 2017: export sales grew on average less than domestic turnover, a phenomenon largely driven by the Italian government’s incentives on capital goods purchases.
The positive domestic market trend is continuing in the second half of the year, with exports also expected to pick up. The proportion of companies reporting turnover growth is set to rise by 10 percentage points to reach 85%, half of whom will see increases of more than 5%.
Looking in detail at the various business communities, in the first half year of 2017 most companies in the Food Fresh & Convenience segment posted growth of between 0 and +5%. Export turnover was 2 percentage points higher than forecast, and total turnover (Italian + exports) 11 points higher due to strong domestic sales. Estimates for the current half year point to a further improvement in all three variables investigated (total sales, export sales and employment).