Italian Machine Tool Builders Profit by Tax Changes
Jan 09, 2017
Industry 4.0 tax provision allows manufacturers to claim credits for up to 250% of capital investment
- Ucimu forecasts 6.9% rise in domestic sales
- Sees 4% increase in production
- Expects 1.7% export increase
Italian manufacturers reportedly are benefiting by a new tax provision that allows them to claim credits up to 250% of the value of their capital investments in high-technology products. The so-called Industry 4.0 tax incentive was promoted and implemented by the now ousted government of former Prime Minister Matteo Renzi. As a result, Ucimu is forecasting domestic consumption of machine tool technologies will rise 6.9% in 2017.
Further, the group predicts its members’ production of machine tool products will rise 4% year on year for 2017m, to €5.7 billion (or roughly $5.93 billion), the record high set in 2008.
Ucimu is a trade association representing Italian manufacturers of machines tools, robotics and automation systems, and auxiliary products.
UCIMU- Sistemi per Produrre (“Systems for Production”) is a trade association for Italian manufacturers of machine tool, robots, automation systems, and related products (NC, tools, components, accessories.) It has over two hundred member companies, who represent more than 70% of such products manufactured in Italy.
“After three consecutive years of double-digit growth of the domestic market, we want to remain cautious, but as I look around and speak with our members, I am convinced that the growth rate of domestic demand will be higher by a large amount,” Ucimu president Massimo Carboniero said.
Carboniero is also the general manager and co-owner of Omera, a manufacturer of mechanical and hydraulic metal forming machinery. He claimed his firm is among those seeing the benefits of the tax-code changes.
“Italy has started investing again and in 2017 the entire sector has a unique opportunity: taking advantage of the government plan for advanced technology,” Carboniero said. “The measures will give a further boost to demand of machinery and innovative technologies to digitize the factories.”
Also for 2017, Ucimu forecasts Italian machine-tool exports to rise 1.7% year-over-year (having fallen 3.3% in 2016) to a total of €3.3 billion (est. $3.4 billion.)
Source: AMERICAN MACHINIST