Mollificio Bergamasco: market analysis and future challenges

The end of the year provides an opportunity to reflect on the dynamics of 2024 and forecast upcoming trends. Letizia Zoia, Marketing Manager at Mollificio Bergamasco, shares her insights on the Italian and global manufacturing markets.

Let’s talk about the market outlook: what are your prospects for Q1 2025?

Unfortunately, forecasts for the first quarter of 2025 remain cautious, with weak demand persisting. While there are some positive signs for the global economy, such as GDP growth and upward revisions by the European Commission, the Italian manufacturing sector struggles to regain momentum. Factors like global economic uncertainty, geopolitical tensions, stricter export regulations, and increasing competition from international players continue to weigh heavily. However, there is hope for a stronger recovery ahead.

What are the main challenges for the Italian metalworking sector?

The Italian metalworking industry faces structural difficulties, evidenced by declining production levels. For example, vehicle production dropped in 2023, followed by a further 12.4% decline in early 2024. This downturn is accompanied by increasing "industrial desertification," with historical Italian industrial groups being acquired by Turkish investors and a strong influx of private equity funds in large companies and SMEs. These shifts raise concerns about the sector’s long-term sustainability and ability to remain globally competitive. Significant challenges lie ahead.

Speaking of which, how can local businesses stay competitive in a globalized market?

Maintaining competitiveness is increasingly difficult, particularly as industrial hubs shift beyond Italy and Europe. A shrinking domestic market and the loss of technical and managerial expertise threaten the innovation that has always defined Italian industry. For subcontractors, maintaining relationships with companies that continue to invest in innovation is critical. However, there is concern that an excessive focus on green initiatives, while important, may not suffice without robust industrial support. Future success will depend on the ability of key clients to drive the industrial ecosystem with targeted investments and a strong push toward innovation.

What challenges are businesses facing with raw materials?

The raw materials market is becoming increasingly complex. Copper prices are rising amid persistent imbalances between demand and production. Similarly, the steel sector faces significant difficulties due to declining demand from high-consumption industries like construction, mechanical engineering, metal products, and automotive. The combination of reduced demand and fragile production underscores the need for new investments to restore competitiveness. Additionally, market volatility, as seen in precious metals like gold and silver, adds another layer of uncertainty for the entire sector.

So, how can businesses tackle these challenges?

An analysis of 2023 highlights the need for a strategic shift, focusing on product development and innovation as priorities. Adopting a clear vision and fostering collaboration across the industrial supply chain is essential. Mollificio Bergamasco is already moving in this direction, emphasizing targeted investments, synergies, and long-term strategies. In an uncertain landscape, cooperation among businesses, institutions, and investors is no longer optional. A strong network and innovative approach are critical to overcoming current challenges and building a more competitive and stable future. Mollificio Bergamasco is ready to face these challenges with determination and clear strategic objectives.

The year 2024 closes with a mix of bright spots and ongoing challenges. While there are signs of economic recovery, structural difficulties and market uncertainties persist. Despite this, Mollificio Bergamasco remains a trusted leader in the spring manufacturing industry.

About Mollificio Bergamasco

Mollificio Bergamasco is an Italy-based manufacturer of compression, extension, torsion, double torsion, and spiral springs. With extensive industry experience and a strong commitment to innovation and quality, the company provides tailored solutions, confirming its role as a reliable partner for businesses seeking maximum efficiency and competitiveness.