Signs of Domestic Recovery in Italy’s Textile Machinery Industry Amid Global Headwinds and Strategic Transition
On July 31, 2025, the Association of Italian Textile Machinery Manufacturers (ACIMIT) released its quarterly industry report for Q2 2025. The data shows that despite a marginal overall decline in orders, Italy’s domestic textile machinery market has shown initial signs of recovery. This positive shift may offer a glimmer of hope to a sector still navigating complex global challenges and internal structural shifts.
According to ACIMIT’s figures, the index of orders for the second quarter stood at 47.1 points (base year 2021 = 100), representing a minor 1% decline compared to the same period in 2024. However, within this modest decrease lies a meaningful detail: a significant rebound in domestic demand. Orders from the Italian market surged by 38% year-on-year, reaching 70.9 points, effectively offsetting a 7% drop in foreign orders, which fell to 43.8 points. This divergence between domestic and foreign markets has redefined the dynamics of the sector this quarter.
This upward tick in domestic performance comes as a welcome contrast to the previous quarter. In Q1 2025, the industry experienced a sharp 29% drop in the order index, falling to 41.8 points. The collapse was even more pronounced within Italy, where domestic orders plummeted by 57%, hitting a historical low of 30.5 points. Orders from abroad declined 25% to 43.3 points, further compounding industry concerns. At that time, the order backlog was sufficient to cover just 3.6 months of production. Compared to this, Q2 showed some relief, with backlog increasing slightly to 3.9 months of guaranteed production.
Nonetheless, this modest improvement has not yet translated into a robust revival of production. The average utilization of production capacity during the first half of 2025 stood at only 55%, a clear sign of underused infrastructure and subdued confidence. Projections for the second half of the year are slightly more optimistic, with expected utilization rates climbing to around 60%. Still, this remains below historical norms and far from the levels needed for healthy industry growth.
Marco Salvadè, President of ACIMIT, noted that while the domestic rebound is promising, the situation remains fragile. “Demand in Italy is still weak,” he said. “The increase recorded between April and June will need to be confirmed over the course of the year.” He further emphasized that the industry cannot rely solely on this short-term uptick and that sustained internal demand is necessary to anchor any long-term recovery.
Externally, the situation is more complex. Salvadè voiced concerns about multiple headwinds affecting foreign trade. Chief among them is the United States’ imposition of a 15% import tariff on European textile machinery. Coupled with a sharp depreciation of the euro against the U.S. dollar, these factors pose significant challenges to Italian exporters. “Depending on how other countries supplying textile machinery to the U.S. are treated in terms of tariff policies, Italian manufacturers could face a competitive disadvantage,” Salvadè remarked.
While the United States remains a critical export market—being Italy’s fourth-largest destination in 2024 with over €112 million in exports and a further 3% growth recorded in the first four months of 2025—the future remains uncertain. The geopolitical climate is far from stable, and trade tensions may escalate further. Beyond the U.S., two traditionally strong markets—China and Turkey—are also underperforming. From January to April 2025, Italian exports to China dropped by 32%, while those to Turkey plunged by 47%. These steep declines in key regions significantly contributed to the 7% decrease in foreign orders and reinforce the need for market diversification.
Looking beyond the headline numbers, the industry is undergoing a deeper transformation. Italian textile machinery manufacturers are accelerating their pivot toward green and digital technologies, in line with the European Union’s sustainability goals and regulatory mandates. Many firms are investing in energy-efficient equipment, fiber recycling solutions, and intelligent production systems to remain competitive. These innovations are expected to not only improve environmental performance but also create new commercial opportunities in emerging markets with growing demand for sustainable production tools.
The green transition is not merely a matter of compliance but a potential source of competitive advantage. Italian machinery, known for its quality, customization, and technological sophistication, is well-positioned to lead in this area. ACIMIT has actively supported member companies in their sustainability efforts, organizing seminars, joint research projects, and promotional campaigns to highlight the industry's commitment to innovation and circular economy principles. These efforts are increasingly vital in winning contracts with eco-conscious clients and institutions.
In addition to sustainability, internationalization remains a strategic priority. Recognizing the risks of over-dependence on a few key markets, Italian manufacturers have intensified efforts to tap into emerging economies. ACIMIT has announced that 23 Italian textile machinery companies will participate in Colombiatex 2025 in Medellín, Colombia. This country has emerged as the second-largest destination for Italian textile machinery in South America, with imports from Italy reaching €13 million in 2023. Similarly, markets like Pakistan, Brazil, Turkmenistan, and several Southeast Asian nations are being actively explored for new partnerships.
Turkmenistan, for instance, is experiencing annual growth in textile machinery imports of approximately 7.3%, with projections indicating continued demand growth at a rate of 5.5% over the next few years. These new markets represent significant opportunities, especially for Italian firms offering mid-to-high-end solutions that balance quality with operational efficiency.
Meanwhile, ACIMIT is enhancing the visibility of Italian technology through integrated trade promotion. For the first time, the association hosted an official booth at Milano Unica, one of the world’s premier high-end textile fairs. The initiative aimed to bridge Italian machinery producers with textile fashion brands, fostering deeper integration within the national supply chain and showcasing Italy’s full industrial ecosystem—from machinery to final product. Such initiatives are helping to position Italy as not just a producer of machinery, but as a systems integrator capable of offering end-to-end value.
Yet, challenges persist in cost competition. Italian manufacturers face intensifying competition from global players, especially China, Germany, and Japan. These countries are ramping up their presence in strategic markets and offering more affordable options, sometimes at the expense of performance or customization. In response, Italian firms are doubling down on their unique value proposition—offering tailor-made, reliable, and high-efficiency systems backed by strong after-sales service. However, cost pressures remain real, especially in price-sensitive markets.
The structural imbalances within the sector—exemplified by the gap between production capacity and actual demand—highlight the need for supportive public policy. ACIMIT has repeatedly called on the Italian government to introduce streamlined and effective capital investment incentives. The current administrative procedures for accessing support are considered cumbersome, with many firms reporting delays in funding that ultimately deter investment. Simplified tax credit schemes or fast-track financing for modernization could make a tangible difference in the sector’s recovery.
When comparing recent data to previous years, it becomes clear that while some metrics are improving, the industry remains well below pre-pandemic performance levels. In Q2 2024, the order index stood at 49.8 points—still 17% below 2023—with foreign orders down by 22% and domestic orders up by 25%. At that time, the average capacity utilization was around 61%, and production backlog covered 4.3 months. Today’s figures, with lower utilization and a slightly shorter backlog, underscore how much recovery work still lies ahead.
In conclusion, the Q2 2025 report from ACIMIT paints a nuanced picture. On the one hand, the strong rebound in domestic orders signals potential stabilization after several challenging quarters. On the other hand, the broader context remains troubling: sluggish foreign demand, trade-related barriers, underutilized capacity, and an uncertain geopolitical environment all weigh heavily on the outlook.
Yet, within these challenges lie opportunities. The pivot toward sustainability and digital transformation could unlock new avenues of growth, especially in green-conscious or industrializing markets. Meanwhile, renewed attention to emerging regions and collaborative efforts within Italy’s industrial ecosystem may strengthen the country’s position globally.
For these reasons, the next few months will be critical. Will the domestic demand continue its recovery trajectory? Can international markets rebound or be effectively replaced by new ones? Will policy-makers act decisively to support investment and modernization? The answers to these questions will determine not just the fate of the textile machinery sector, but also the broader resilience and adaptability of Italian industrial innovation.
While the road ahead remains uncertain, one thing is clear: the Italian textile machinery industry is at a crossroads—cautiously hopeful, strategically adjusting, and ever determined to stitch together a stronger, more sustainable future.