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GIMAV: negative 2009; benefits from potential of China and Brazil

GIMAV – the Italian association of suppliers of glass processing machinery and accessories – has completed and presented its 2009 survey for the industry, which provides a snapshot of its structural c…

GIMAV – the Italian association of suppliers of glass processing machinery and accessories – has completed and presented its 2009 survey for the industry, which provides a snapshot of its structural characteristics, manufacturing activity and export markets. The sector of glass processing machinery, where GIMAV accounts for more than 70% of sales, is a homogeneous one in terms of the final destination of its products, but diversified as regards the category of companies working there. In order to understand this complex sector, ISTAT data must necessarily be integrated with data supplied by GIMAV member companies. Sales by the glass processing arm are achieved by companies working in the mechanical, chemical, plastics, rubber and other industries. A common denominator in the entire chain is the final customer, the one who produces and processes the glass. Among Italian suppliers of glass processing machinery and accessories, who are famous worldwide for their high-tech products, there is a strong export drive: about 75% of production is for the international marketplace. Exports have come to a standstill as a result of subdued economic activity worldwide: after years of continued growth, 2009 ground to a halt at -28.18% over the previous year. This overall downturn has been offset however by a potential upswing in first semester 2010. Attendance at leading international exhibitions for the industry, which has always been promoted by GIMAV, is obtaining encouraging results in the countries that are driving the recovery. First among these are China and Brazil. In 2009, China became the third major export market for the industry, representing double digit increases in total sales over 2008 (+16.79%) for GIMAV member companies. The growth continued into early 2010 with the country delivering 10% GDP growth rates on average. However, very few Chinese producers of glass processing machinery can offer complete lines: most are able to produce only one or few types of machines, obliging Chinese technicians to resort to a mix of machinery from different suppliers. This is one of the major strengths of Italian companies, which offer complete lines of high tech machinery for high quality production. Despite Italy“s ups and downs over recent years albeit with encouraging signs, it represents 5.73% of total imports of glass processing machinery into China. Good news is also coming from Brazil, the largest buyer of Italian products in all of Central and South America in 2009. Last year it was by far the largest buyer, accounting for 4.95% of total exports by the industry, outranking the US, which fell to 3.76% due to the crisis. The Brazilian glass industry has been experiencing a surge in growth: glass consumption has been rising steadily, reaching +37% in 2008/2009, and is tipped for 22% growth in 2010. This is how GIMAV director Renata Gaffo, views this special moment: The signs of recovery coming from some markets in early 2010 seem to indicate a pickup in demand. Our companies are being called to make every effort to tackle the worst crisis in the past 70 years. By drawing on the very same features that determined its success in the past – an extensive, wide-ranging sales network, the ability to generate customer loyalty, operating flexibility in response to demand, prompt technical assistance – this special Made in Italy sector can make inroads into emerging markets and regain lost ground on traditional ones.

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