The industrial machinery sector and the opportunities in international trade «LMF Lamiafinanza

“The 2021 data on exports of the Italian industrial machinery market are promising: last year, this sector actually closed at € 6.3 billion (+ 22.1%). Exports amounted to € 3,360 million (+ 17.4%) and had a positive trend in almost all exporting countries except China: in Germany sales increased to 256 million euros (+ 38.4%), in the USA 251 million (+ 9.7%), in China 154 million (-5.3% %), in Poland 118 million (+ 29%) and in France 117 million (+ 1.2%) “declares Marta Bonati, Country Manager for Ebury, a fintech company specializing in international payments and foreign currency charges, solutions to currency risk management and import financing.

An analysis of the data also shows that an increasing trend is also expected for 2022: in 2022, production will grow by + 10.9% (compared to 2021), driven by exports, which will reach 3,620 million euros (+ 7.7%) and the increase in deliveries from domestic producers, which will increase to EUR 3,395 million (+ 14.5%).

With more than 860,000 employees, the sector plays a leading role, capable of generating 28% of the added value of our production and 4.7% of national GDP. This market segment brings together heterogeneous realities, among which those in mechanical engineering stand out: of the sector’s 120 billion exports, 80 come from the products of this supply chain. A real excellence recognized internationally, with turnover volumes second only to Germany’s.

Trade with EU and non-EU countries is therefore fundamental to an entrepreneurial structure such as the Italian one, which consists mainly of industrial districts with micro-enterprises and SMEs, whose export vocation is the engine of growth. However, commercial exchanges with non-euro area countries also expose companies in this sector to the risks associated with the exchange rate and relative volatility, especially in the current highly uncertain geopolitical context. For example, fluctuations in exchange rates may lead to a depreciation of the foreign currency that a company has agreed with its customers as a means of payment, and thus to a reduction in the euro equivalent of revenue. The work with currencies other than the euro therefore exposes the company to greater uncertainty and represents a volatility factor for the financial result at the end of the year.

Faced with this diversity of events that can make foreign charges and payments uncertain, it is advisable to contact professionals working in companies that specialize in managing international flows and hedging currency risk. The Fintech world can actually support companies operating in this market through ad hoc solutions:

  • through some fintech platforms, it is possible to receive funds from abroad directly in their own currency, make payments in multiple currencies around the world and send money to suppliers, employees and business partners very quickly, reducing the resulting risk exposure;
  • it is possible to obtain credit lines, with repayment options up to 150 days later, to finance international imports, pay suppliers in advance and be supported with working capital; this allows for sufficient cash flows to accelerate the growth of the company across borders;
  • Through time-limited or flexible contracts, it is possible to “lock in” the exchange rate and use it in the future to protect your business from the volatility of the foreign exchange market.

“Having reliable partners is therefore essential to better manage the risks involved in entering new markets, to expand business opportunities and increase one’s competitiveness,” concludes Marta Bonati.

Categories: Companies | Tags: trend, trade, credit, growth, supply chain, fintech, management, companies, opportunities, payments, production, trends

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