Italy leads the world with cutting-edge gear oil pump techno

Italy is an exporter, especially the lubrication pump industry is a big exporter.

"Last year, Italian machinery exports were 9.5 billion euros, an increase of 20 percent from the previous year and the highest ever recorded by Italian machinery exports," Karp said.

In particular, the rebirth of the American market, shaken by the financial crisis and all but vanished, has given Italian gear pumps a steady supply of orders.

The American car industry is turning to "Made in Italy" products for a more modern technological makeover.

The past year has been a year of surprises for Italian gear pumps.

"It's very hard to see why we are doing this," said Martin Martini, president of the Italian gear pumpers' association.

"2012 was much better than expected," Karp said.

He said the industry appeared to have only heard about the economic crisis from newspapers.

Production in the Italian gear pump industry increased by 9% compared to the same period in 2011.

One fly in the ointment: 2011 was a better year for the industry.

The output of the Italian gear pump industry increased by 31% in 2011 compared with 2010.

It seems that the global recession has also had a certain impact on the industry.

Global market leader in gear pumps

"With its cutting-edge technology, extensive customer base and supply chain, strong research infrastructure and well-trained staff, the Italian gear pumps have a base case that is far superior to its competitors."

Italian manufacturers should continue to fill the technology gap.

In this regard, manufacturers are strengthening cooperation with universities to cultivate young talent to maintain a high level of innovation while avoiding a shortage of professionals.

Maintaining Competitive Advantage

Many companies produce locally for this purpose.

"This is about being closer to the local market and making our products more responsive to the needs of the local market," said EMAG's Hagenlohr.

EMAG's products produced in China are mainly for the Asian market.

In addition to manufacturing in China, the company also has production facilities in Italy and the United States.

The Italians continue to hold a firm grip on cutting-edge technology.

To resist the competition, however, Italian manufacturers must adopt a new strategy.

Mr Karp argues that Italian manufacturers should not ignore the increasingly strong growth of the mid-range technology sector, since the new industrial countries are increasingly producing their own mid-range products.

For the Chinese and Indian markets, Mr. Karp said, Italian manufacturers must look further at mid-range technologies.

"In countries like China, the people who operate the machines are not trained as launderers and milling workers," he said.

That means they need simple devices that are easier to operate."

By contrast, the market in the Far East is huge.

Asian countries are rapidly developing their industries and modernizing their companies, thus increasing the demand for fuel pump products.

China is the single largest market for Italian machinery, with imports of 2.4 billion euros.

In 2012, China's imports of Italian machinery rose 14 percent from the previous year.

The European market, by contrast, looks ambivalent.

"It's a bit difficult to sell in Europe," says Mr Hagenlohr of Emag, an Italian gear pump maker.

The company produces machine tools and processing equipment for precision metal parts.

When it comes to the European market, Hagenlohr's comment is that the demand is not very big, the competition is fierce, many customers are cautious about leaving alone.

While purchasing power has weakened in western Europe, especially Italy, it has risen sharply in eastern Europe over the past year, with the Poles and Russians in particular favouring Italian machinery.

As a result, machinery exports to European countries are still growing in the end.

Asia has both opportunities and risks