Italian foundry production 2023: the year ends with a slowdown
In the fourth quarter of 2023, the production of Italian foundries recorded a cyclical growth of +3.3% compared to the previous three months but was confirmed, for the third consecutive quarter, in decline compared to the same period of 2022: the final data for the period October-December 2023 is down by -12.2% compared to the corresponding quarter of 2022. This is underlined by the latest economic survey by the Assofond Study Center on data relating to the period October-December 2023.
Trend decline in production in the foundry sector
In the fourth quarter, the quarterly change in production (in tonnes) stood at +3.3% compared to the third quarter. The figure, it must be said, is mainly due to the greater number of days worked compared to the previous quarter, which included the month of August, a period in which prolonged production stops are concentrated for the summer holidays and scheduled maintenance of the plants. The comparison with the same period of 2022 is therefore more significant: in this case the trend change is negative and equal to -12.2%.
55.9% of the companies that responded to the questionnaire reported an increase in production compared to the previous quarter but, confirming what was highlighted above, 50% of the responses indicated the greater number of days worked as the main reason for performance, while 29.2% of the responses justify the figure with a growth in orders and orders.
Even from the point of view of turnover we are witnessing similar dynamics, with a cyclical growth of +5.3% compared to the previous quarter, which however turns into a drop of -13.9% if instead we compare the revenues of the period October- December with those of the same quarter last year.
The percentage of companies reporting a quarterly growth in turnover is 50%, but significant - considering the particularity of the comparison quarter, i.e. the third - is that as many as 41.2% of the responses showed a decline, while only the 8.8% of the companies in the sample reported stable turnover.
Sectoral dynamics of Italian foundry production 2023
The production dynamics, although aligned in terms of cyclical growth and trend decline, differ between the two groups into which the foundry sector is traditionally divided: that of ferrous metals, i.e. cast iron and steel, and that of non-ferrous metals, i.e. aluminium, zinc, copper and other alloys.
The downward trend is more marked in non-ferrous foundries (-31.2%) than in ferrous ones (-4.8%), while on the economic level the latter show a less pronounced recovery compared to the previous quarter (+2.1 % vs. +6.5%).
From the point of view of turnover, it is the ferrous metal foundries that show the worst performance in terms of trend change: the decline compared to the last quarter of 2022 is in fact equal to -14.4% against -12.7% of the non-ferrous. Even in terms of economic growth, that of ferrous foundries is less significant than that of non-ferrous foundries: +2.1% vs. +12.1%.
Labor market in the foundry sector
The survey conducted by the Assofond Study Center also maps the trend of the job market in the sector on a six-monthly basis. In the second half of 2023, the vast majority of foundries (85.3%) were looking for new staff.
The most sought after profiles are specialized workers, indicated in 36.8% of the responses, followed by office workers (33.3%). 24.1% of the sample expressed full satisfaction with the results of the research carried out, while the absolute majority of companies (69%) only partially achieved their objectives.
Source: In Fonderia – ll magazine dell’industria fusoria italiana