09   Giugno   2017

Ceramics year 2016

Italian ceramic industry investments rise to 400.4 million euros (+14%), 7.4% of annual turnover. Sales of ceramic tiles manufactured in Italy top 5.4 billion euros (+5.9%). Exports reach 4.6 billion euros (+6.3%), while the domestic market (829 million euros) picks up following years of decline. Manufacturing activities outside Italy generate 855.6 million euros, consisting of 16 operations in North America and Europe. The ceramic sanitaryware, refractory materials and tableware sectors report a combined turnover of more than 776 million euros and employ 5,809 people.

According to statistical surveys for the Italian ceramic industry presented at the 2017 Confindustria Ceramica Members’ Meeting, the 225 ceramic tile, sanitaryware, tableware and refractory materials manufacturing companies in business in 2016 employed a workforce of 24,765 people and reported a total turnover of 6.193 billion euros (+6%).

Ceramic tiles produced in Italy.
In 2016 there were a total of 147 ceramic tile manufacturers operating in Italy (3 fewer than in 2015). These companies employed a workforce of 18,956 people (-1.0%), produced 416 million square metres of tiles (+5.4%) and posted sales of 414.5 million square metres (+4.5%). Italian sales picked up after an eight-year contraction and totalled 82.8 million square metres (+3.2%), a figure that is however less than half that of the pre-crisis market. Exported volumes increased to 331.7 million square metres (+4.8%). This brings the total turnover of ceramic companies operating in Italy to 5.4 billion euros (+5.9%), consisting of 4.6 billion euros from exports (up 6.2%, corresponding to 85% of turnover) and 829 million euros from domestic sales.
Investments grew for the third year running, reaching 400.4 million euros in 2016 (up 14% on 2015 following the previous 22.7% increase on 2014). The investments in the Italian ceramic tile industry are now the highest in the entire manufacturing sector at 7.4% of annual turnover. ./.

Contributing factors include the recovery in competitiveness through the use of more advanced technologies for Italian ceramic products, modernisation of factories and production lines and the resulting confidence in the sector’s prospects. Sector companies are already stepping up investments in the current year thanks to tax incentives focused on the Factory 4.0.

International production on the part of Italian companies.
In 2016 there were a total of 16 Italian-owned companies operating outside Italy, the same number as last year. Controlled by nine Italian ceramic groups, these companies employed 3,283 people (+6.2%) and produced 85 million square metres of tiles (+3.2%). Total turnover amounted to 855.6 million euros (+8%), of which 474.5 million euros was generated by operations in Europe (+2.6% to a 55.4% share) and the rest by sales in North America (+15.5% to 381 million euros). 79.5% of total turnover was generated by sales in the same market where the factory is located.

Ceramic sanitaryware. 
There were a total of 33 ceramic sanitaryware manufacturers operating in Italy in 2016, including 30 located in the Civita Castellana area of the province of Viterbo (analysis conducted in collaboration with the Civita Castellana Ceramic Centre). The industry employed a total workforce of 3,124 people nationwide (-2.5%) and produced 4.09 million pieces (+8.5%). Turnover totalled 332.9 million euros (-0.7%), including exports of 149.8 million euros (45% of the total, higher than in previous years).

The refractory materials industry.
The 35 companies producing refractory materials in Italy employed 1,957 people (6.1% fewer than in 2015) and reported production volumes of 399,300 tons (+7%) and sales of 409,600 tons (+5.8%). Domestic sales totalled 261,500 tons (+7%), corresponding to 64% of total sales volumes.
The total turnover of 395.6 million euros (+4.3%) consisted of 253.1 million euros from domestic Italian sales (+5.1%), 81.7 million euros from exports within the EU (+5.9%) and 60.7 million euros from exports outside the EU (-1.0%).

Ceramic tableware.
The 10 industrial-level Italian companies (a figure that remains unchanged with respect to 2015) employed a total workforce of 728 people (+1.1%) and produced and sold 11,900 tons of finished products. Domestic sales made up 75% of the total. 2016 turnover stood at more than 47.9 million euros (+0.6%), about 68% of which was generated in Italy.
Since anti-dumping duties on imports of Chinese ceramic tableware and porcelain to Europe were introduced in 2013, there has been a 26.15% fall on purchases from China.

Comment by Confindustria Ceramica Chairman Vittorio Borelli
“The ceramic sector is consolidating its structure at a time of major investments in new technologies aimed at maintaining its world leadership within a positive if increasingly competitive international scenario,” said Confindustria Ceramica Chairman Vittorio Borelli.  “Despite the rise in US interest rates, the anticipated growth in world GDP (+3.2%) and international trade (+3.1%) in 2017 are reassuring signs for an industry focused on international markets like ours. The main topic on the Italian ceramic industry’s agenda is the antidumping measures applied to Chinese tile imports to Europe, currently under review while awaiting a further five year extension in accordance with the regulations in force. Instead our industry is concerned about the European Commission's bill regarding the review of the antidumping law in which the granting of Market Economy Status (MES) to China might cause uncertainty in the procedure and make antidumping activities less effective.”

Another major issue is that of energy. “As regards the general costs of the electrical energy system, we trust in the recent declarations by the Minister for Economic Development Carlo Calenda concerning adaptation of article 39 to include a Trade Intensity parameter,” continued Vittorio Borelli. “As for system competitiveness, we also greatly appreciated the announcement made by the Minister of Infrastructure Graziano Delrio last week in Sassuolo confirming the imminent signing of the Addendum completing the procedure for construction of the Campogalliano-Sassuolo motorway link road and commencement of work in May 2018.”

“Following the positive signs first observed in 2016, the Italian construction market is continuing to recover and sales of ceramic tiles are picking up, largely thanks to extension of tax breaks relating to the so-called “earthquake bonus” and condominiums. Another positive sign is the fact that Cersaie 2017 due to be held in Bologna in September is fully sold out and that the 2018 edition will extend over several new halls in the Bologna exhibition centre. Future competitiveness is dependent on young generations,” concluded Vittorio Borelli. “With this in mind, the Association has organised training activities together with eight institutes of higher education in the province of Modena and a number of faculties of Architecture and Engineering and Design Schools across Italy.”