Interview with Metallurgica Locatelli’s owner: a bleak period for the metalworking industry

In the dynamic landscape of the metal processing industry, Metallurgica Locatelli, led by Giovanni Locatelli, is grappling with unprecedented challenges. In this interview, we delve into the recent months - a period marked by exceptional difficulties - to gain a deeper understanding of the company's perspective on the market and to glimpse into the future.

Mr. Locatelli, let's begin by discussing the recent general context. What has been Metallurgica Locatelli's experience from June 2023 to date? How do you assess the overall performance of the sector in recent months?
As early as June, we were discussing the challenging period our sector is undergoing. July can be considered in line with the previous months: marked by significant commercial efforts to ensure a certain level of work continuity. The workload was very calm, with no short-term improvement prospects. The struggles persisted into September, making it one of the most challenging months for production and sales. However, October surpassed even September, emerging not only as the weakest month of the year but also as one of the most arduous periods in the company's history.

What are factors that have negatively impacted performance?
Too many uncertainties of all kinds are creating very complex situations that will lead to an extended period of stagnation. Reasons and causes remain the same, correlated with the economic and financial system and, ultimately, with the lack of purchasing power of the middle class, preventing spending and hindering economic activity. This climate of instability and standstill persists, and is likely to linger until the end of the year, if not beyond. Due to the cruel law of very weak demand, prices are plummeting, forcing us at times to forgo orders from important clients.

Looking ahead, how do you foresee the near future for Metallurgica Locatelli and the metallurgical industry in general?
The forecasts for the end of the year anticipate sales difficulties and increasingly low order quantities. It's sad to say, but we will have to go through the last months of 2023 and the beginning of 2024 in a severe economic recession. The concern now is for the lack of a stable future and steady order volumes, as well as the aggressiveness of our competitors, who, to avoid losing orders, are willing to work at a serious loss.

What is the strategy moving forward to navigate through this recession?
What can make a difference today is quality. Our entire organizational structure and the attention of all collaborators must be focused on maintaining the highest standards, during the production process and beyond. Any critical issues must be nipped in the bud.

We thank Mr. Locatelli for sharing with the readers of expometals.net his realistic view of the present and future of the wire drawing industry.

Founded in 1920 in Lecco, Northern Italy, Metallurgica Locatelli specializes in drawing low carbon steel wires. The constant focus on quality, organizational evolution, and continuous technological improvement represent the driving values of the company.