How was the end of 2022 for the sector of machinery manufacturers and distributors represented by ARGI?

The Argi Observatory is the tool through which the association carries out market research, but we have not yet released the data for 2022. So there are no official numbers available, but we can pass on what is the sentiment gathered from the members, which for the most part testify to the excellent results of 2022. The rebound effect generated after the fall of 2020 (of which we all know the causes) opened up a 2021 characterized by great growth. This rebound effect continued in 2022, without being particularly affected by the Russian-Ukrainian conflict, but somewhat limited by the components and materials shortage that became very evident in the early and middle part of the year, creating backlogs that are being recovered only in present days. After all, it was a positive 2022 that could have been more so in physiological terms had it not been for the issue of raw materials.

Which types of investments were the best (roto, offset, digital, machinery types)?

To talk about this, it is necessary to take stock of the 'incentives' situation with respect to investments in machinery, both considering known instruments (Sabatini Law) and all other possibilities connected to the Industry 4.0 and Digital Transition plan. The last few years were characterised by the momentum resulting from these measures that were implemented by the following governments. Definitely companies decided to invest, I believe according to their own industrial and business development plans. Therefore, on technologies or machinery that could be functional to their development plan. If we want to make a specific distinction based on what we heard from our members, we can say that investments in machinery with higher purchase costs (offset, roto) had more appeal, because on such investments the percentage of financing (tax credit) had very significant values. As a consequence, investments on digital machinery, for example, were put as a second step even for those who were planning to renew their entire fleet.

Which are the trends, based on machinery investment, evidenced by the market?

Trends can be summarised as: convergence of markets and applications, demand for effect printing, innovative materials, use of systems that meet the principles of sustainability (energy, materials, inks, waste). A mix of elements that originates from the changing demand of those asking for printed products (brands). This led the converting market (printers) to make choices that must take into account how each investment might respond to the above-mentioned principles. For this reason, today we have more and more printing factories where different printing technologies co-exist: from offset to digital, from flexo to rotogravure. The range of offers (this is very evident for online printers) covers product types that some time ago used to be destined for completely different markets. Today, on the contrary, they are converging.

General figures show how the papermaking sector is continuing to perform better than graphics, is this also true for machinery industry?

This trend is now destined to become normality. Commercial printing applications used to be the only opportunity in the hands of brands to spread and promote their products (directly or via distribution channels). We know that this is no longer the case, because electronic communication is now a well-established channel. We might also argue about the effectiveness of the message, the ROI of operating on different channels, but the coexistence of several channels already explains why printing has obviously dropped. Certainly in volumes, but this lead to an increase in the unit value of the product, precisely because of the search for more engaging and effective prints. On the other hand, papermaking can now express a new role other than that of simple container or packaging. It represents the physical touch-point with consumers, and it is not replaceable by electronics (although with the metaverse we are trying to replicate sensations). For this reason, new solutions and innovations are also appearing on the machinery side in order to create integrated, and therefore more efficient, production processes.

What do you expect from the new government and the NRRP?

The confirmation that our industry is an essential sector for the development of the country's economy and business continuity. Because without printing we would all remain blind with respect to our surroundings. And it is right to think of supporting this industry both in its digital transition and in its path towards sustainability and low environmental impact.

What about 2023?

I believe that 2023 can be a positive continuation of 2022 also thanks to the possibilities provided by the Budget Law 2023 (and then by the Milleproroghe Law) on delivery times for machinery relating to Industry 4.0 funds. Then it will be necessary to evaluate and verify the response of the industry once the driving force of financial incentives will be exhausted. We expect the market to stabilise, although we are aware that some niches will find interesting areas for growth. Moreover, let’s not forget that the search for technological innovation is always ongoing and that in 2024 we will have the eagerly awaited Drupa, where further announcements will certainly be made, thus creating opportunities for printers to evaluate further expansions and upgrades of their technologies. The recovery of trade exhibitions in general, together with the quality of visitors that has not disappeared after the pandemic - as it was clearly confirmed by the numbers of Print4All 2022 - are a sign of optimism and of the desire to give Printing an increasingly strategic and prominent role. So we have great expectations for Labelexpo 2023, Drupa 2024, Print4All 2025.