Italian foundry production in the second quarter of 2025: analysis and report
The Italian foundry sector is experiencing a critical phase. Data compiled by the Assofond Research Center in its most recent report show that, despite a modest economic rebound (+1.3% compared to the previous quarter), Italian foundry production in the second quarter of 2025 recorded a 5.9% contraction compared to the same period in 2024.
Turnover also reflects a similar trend, with a 6.7% decline compared to the second quarter of 2024: the weak economic acceleration (+1.6% compared to the previous quarter) is not sufficient to reverse the negative trend.
"The data from the Assofond 2025 report on foundries confirm the structural difficulties that emerged in the second half of 2023," says the association's president Fabio Zanardi, adding: "The first half of the year ended with negative results, following the dismal performance of 2024. Economic and general trends might suggest that a low point from which to restart has been reached, but the uncertainty surrounding the impact of US tariffs on foundries risks further compromising customer markets."
The Competitiveness of Italian Foundries: The Crux of Tariffs and Domestic Challenges
The announced agreement between the European Union and the United States on tariffs "is not necessarily good news, although it represents a preferable scenario to an uncontrolled escalation," emphasizes President Zanardi. "There are still many aspects to be defined. The hope is that it can at least alleviate the paralyzing uncertainty that has held back investment in recent months, but Europe's critical issues are predominantly domestic."
Regarding the European economy, the association raises a clear alarm: "In a global context characterized by growing protectionism, Europe is particularly vulnerable, operating in one of the most open markets in the world but with a worrying competitiveness deficit compared to international competitors. US tariffs risk diverting large volumes of products from the Far East to Europe, generating unsustainable pressure on our market. To counter this risk, we need to boost the competitiveness of Italian and European foundries: reduce energy costs, ease environmental taxation, simplify bureaucracy, lower labor costs, and protect those investing in decarbonization. Proposals have already been presented: decoupling electricity prices from gas prices, tax-free wage increases under national contracts, and extending the scope of the CBAM to finished products currently excluded, the absence of which exposes us to unfair competition from producers in countries with no environmental regulations, minimal labor costs, and often nonexistent safety standards. The Italian government and the European Commission are aware of businesses' needs: now rapid action is needed.
Production and Profit Trends by Product Sector
The modest quarterly growth in production in the second quarter of 2025 (+1.3% compared to the previous three months) highlights a marked slowdown: in the January-March period, the increase compared to the last quarter of 2024 was +7.1%.
Ferrous metal foundries showed growth of +1.7%, while the non-ferrous metals sector recorded virtually no growth (+0.1%). In the sample analyzed, those that increased production volumes were the most prevalent (38.9%), followed by 33.3% that saw a reduction, and the remaining 27.8% that reported substantial stability compared to the previous quarter.
The quarterly change in turnover in the second quarter was positive (+1.6%), driven by ferrous foundries (+2.7%), while non-ferrous foundries returned to negative territory (-1.2%). Fifty percent of the companies surveyed reported an increase in turnover compared to the first quarter; 27.8% reported a decline, while 22.2% reported unchanged turnover.
Order Backlog Outlook and Visibility
The order backlog visibility assessment remains extremely low. The average visibility is below two months for ferrous metal foundries and slightly higher for non-ferrous metal foundries.
Although the situation remains marked by strong uncertainty, there are signs of improvement both in general sentiment for the reference period, with the ACT index reaching 55 points in June, and in business expectations for the following six months, with the SIX index returning above the pass mark (56 points).
The search for qualified personnel in Italian foundries: an ongoing challenge
Despite market difficulties, foundries continue to recruit in the first half of 2025. 83.3% of companies initiated recruitment in the first half of the year. The most sought-after positions are skilled workers, at 57.8%, followed by general workers (31.1%).
However, 80% of the responding foundries stated they were only partially satisfied with the recruitment process; 16.7% of the sample was fully satisfied, while 3.3% were completely dissatisfied. This data highlights the persistent difficulties in recruiting qualified workers and underscores the strategic importance of investing in training and attracting talent to the sector.
Source: In Fonderia – Il magazine dell’industria fusoria italiana