Industry - Italy's Export Industries - The Top Five

Latest reports released on Nov 13 from BloombergOf the 200 or so industrial districts in Italy, almost all
show Italy has emerged from recession and GDPhave some connection with the chemical industry.
grew by 0.6 percent. The recovery of Germany andThe main concentration of Italy's chemical business is
France, the country's largest export markets, alsoin the north of the country, which accounts for 68%
sounded a note of optimism.of the chemical companies. Lombardy (Lombardia)
Mechanical machinery and equipmentalone accounts for almost half of that percentage
Italy's engineering sector, covering mechanicaland is the top region in Europe in terms of number of
machinery and equipment, is now the second largestcompanies in the chemical industry and second largest
in the EU and fast catching up with leadingregion in terms of employees.
manufacturer Germany. It produced 18.7% ofItalian association Fedechimica conducted a recent
machinery in the EU in 2008 and also made significantsurvey on why foreign companies appreciated doing
gains in Russia, Africa and South America.business with the Italian chemical industry and the top
The sector is dominated by small, family-ownedfactors included: the quality of human resources, the
businesses, with the average size of workforce beingmarket size and quality of customers, the quality and
around 13 people, which is the lowest in Europe.reliability of equipment suppliers and the quality of
There are over 41,000 manufacturing and engineeringR&D.
companies in Italy and while some claim the sector'sThe spread of ownership in the Italian chemical
strength lies in the very personal and 'small isindustry is 41% Italian SMEs, 23% medium and large
beautiful' approach of a family business, others claimItalian companies and 36% foreign companies.
that this is a risky strategy as old-fashioned attitudesIn June 2009 Italian oil and gas group ENI announced
and family loyalties may impede progress in a globalit was investing 700 million euros in the industry
market.between 2009 and 2012.
Italy's growing success in the sector has beenElectrical Equipment, Electrical, Electronic and Optical
through focussing on its strengths - quality of designApparatus
and steady output of mid-range engineering productsEstimates put the value of the global electronics
from small, flexible companies with their sites firmlymarket at $2 trillion per year, $275 billion of that is on
set on the world markets.semiconductors. The sector has suffered from the
Basic metals and fabricated metal productsglobal economic crisis, but analyst firm Gartner
Considering Italy has very few mineral resources andreported in October 2009 that the industry is
has to import most of its raw material, its metalshowing signs of recovery, although this will not
industry is a large and important one in the nation'sstabilise until 2010, with mobile phones expected to
economy, particularly regarding exports. Half of thelead the recovery.
country's iron output comes from the Isola d'Elba offItaly's electronics industry suffered a decline at the
the coast of Tuscany.end of 2008 and the first quarter of 2009, but a
Italy has 50,000 businesses and 850,000 workers inrecent report by the ISAE (Istituto di Studi e Analisi
the metal industry, the majority in the north. In theEconomica) on how the industry itself felt about
iron and steel industry many of the large companiesrecovery showed that companies in the centre and
are in the centre and south of the country.south of Italy felt more optimistic about the future.
Transport equipmentThis was probably because they were less affected
Italy's automobile industry is the country's largestby the international market while the larger
employer with an estimated (2004) 196,000companies in the north west and north east had
employees. The automobile sector is dominated bybeen harder hit and so were more cautious. That
Fiat which ranks number ten in the world's top motorsaid, the signs of recovery are more widespread in
vehicle manufacturing companies, although as athe north.
country Italy ranks only 17th in terms of motorAnother report from the Servizio Studi e Ricerche di
vehicle producing countries. Fiat went into partnershipIntesa Sanpaolo focussed on the vital role of human
with US auto manufacturer Chrysler in May 2009, aresources in the electronics industry. The sector
clear indication that is now seeking to conqueremploys 6.8% of Italy's manufacturing workforce
international markets after its dominance of theand has the highest percentage of workers in the EU
domestic one. It also intends to bring the Alfa RomeoThe sector has seen a 10% rise in the number of
back to the US market. The company posted itshighly skilled white collar workers in the last ten years
highest ever profits in the last quarter of 2008,from 20% in 1997 to 30% in 2007, higher than other
defying the global downturn. As well as productionmanufacturing industries. Add to this the high
and export of iconic luxury brands like Lamborghini,percentage of high sklilled blue collar workers and the
Ferrari and Maserati, the transport export sector alsoelectronics industry in Italy has one of the most
includes city cars, passenger vehicles, transporthighly skilled workforces in Europe, with the
vehicles, trailers, and auto parts and accessories.exception of Garmany.
The government's introduction of incentives to tradeItaly continues to invest in renewable energy and
in older cars for more energy efficient ones hasthis, combined with the government's aim to invest in
resulted in new car registrations rising by 16% inthe south of the country has led to some interesting
October.developments. Northern Italian photovoltaic and solar
Chemical products and synthetic fibrespower plant construction company Enerqos plc of
This is a crucial sector for Italy With a turnover of 57Milan, has a one billion euro contract with NextEnergy
billion euros it is the fourth largest chemical producerCapital and is building four solar in Puglia, in the heel of
in the EU. There are three thousand companies in theItaly's boot. The company also has a licence for
sector employing around 126,000 people.projects in Sicily.