Angelo Lovati: “We’re working, but it will take a few years to recapture the earning levels of 2007”.
Overseas markets rally,but Italy’s domestic market continues to “languish”. It’s the kind of reco- very that, though stated cautiously, “should continue, since demand is not tied to a few clients, but there’s a system that is showing signs of stirring”. This is how Angelo Lovati, head of “Lovati Fra- telli” in Assago, Italy, past president of Gimav and now a director of Federmac- chine, views the performance of the flat glass sector at this juncture and foresees possible dynamics, in light of the condi- tions that were established after the Düsseldorf fair in September of 2010. “Without question, that event marked a turning point – he explains – because it was there that the beginning of a change came about and has moved ahead”. So much so that, as far as Lovati is concer- ned, we’re booked with orders until April and, in talking with my colleagues, it se- ems they’re in the same boat.
“Of course – he clarifies – we’re not at pre-crisis le- vels, when orders spanned the next 6-7 months, but businesses have begun to invest again”. Lovati points out several indicators: recovery in the parts market, for example, as well as the waiting times imposed by one’s own component sup- pliers. “After restructuring, manufactu- rers have trouble responding quickly to the growing demand, which stretches out delivery times”. If, from one perspec- tive, this is an element that reinforces the concept of a recovery, for the flat glass industry it also has a negative connota- tion.
“The prices of components are going up – continues Lovati – but they weigh heavily on a sector, ours, whose profit margin has already been cut to the bone”. So, recovery, yes; but one that is already tinged with some elements of uncertainty.
On the European scene, the driver is Germany (while the rest of the EU countries continue to “lag”); Poland is re- covering, and so is Romania, partially. From Russia, on the other hand, there are no major indicators, just as the USA remains a giant question mark. “The si- tuation in the ‘States – confirms Lovati – is still very calm and I don’t know if and when it will start to pick up”.
Asia, instead, is back on track; and Chi- na continues to sprint; performance in the Middle East seems most promising from Abu Dhabi, Qatar, and Bahrain. Brazil, too, is looking good. In terms of product innovation, “the flat glass indu- stries have been very innovative and are well-prepared for the recovery. Our hope now – concludes Lovati – is for the grow- th trend to continue, even though it will take at least a couple years to get back to the sales levels of 2007”.
Overseas markets rally,but Italy’s domestic market continues to “languish”. It’s the kind of reco- very that, though stated cautiously, “should continue, since demand is not tied to a few clients, but there’s a system that is showing signs of stirring”. This is how Angelo Lovati, head of “Lovati Fra- telli” in Assago, Italy, past president of Gimav and now a director of Federmac- chine, views the performance of the flat glass sector at this juncture and foresees possible dynamics, in light of the condi- tions that were established after the Düsseldorf fair in September of 2010. “Without question, that event marked a turning point – he explains – because it was there that the beginning of a change came about and has moved ahead”. So much so that, as far as Lovati is concer- ned, we’re booked with orders until April and, in talking with my colleagues, it se- ems they’re in the same boat.
“Of course – he clarifies – we’re not at pre-crisis le- vels, when orders spanned the next 6-7 months, but businesses have begun to invest again”. Lovati points out several indicators: recovery in the parts market, for example, as well as the waiting times imposed by one’s own component sup- pliers. “After restructuring, manufactu- rers have trouble responding quickly to the growing demand, which stretches out delivery times”. If, from one perspec- tive, this is an element that reinforces the concept of a recovery, for the flat glass industry it also has a negative connota- tion.
“The prices of components are going up – continues Lovati – but they weigh heavily on a sector, ours, whose profit margin has already been cut to the bone”. So, recovery, yes; but one that is already tinged with some elements of uncertainty.
On the European scene, the driver is Germany (while the rest of the EU countries continue to “lag”); Poland is re- covering, and so is Romania, partially. From Russia, on the other hand, there are no major indicators, just as the USA remains a giant question mark. “The si- tuation in the ‘States – confirms Lovati – is still very calm and I don’t know if and when it will start to pick up”.
Asia, instead, is back on track; and Chi- na continues to sprint; performance in the Middle East seems most promising from Abu Dhabi, Qatar, and Bahrain. Brazil, too, is looking good. In terms of product innovation, “the flat glass indu- stries have been very innovative and are well-prepared for the recovery. Our hope now – concludes Lovati – is for the grow- th trend to continue, even though it will take at least a couple years to get back to the sales levels of 2007”.
