Latest reports released on 13 November 2009 from Bloomberg show Italy has emerged from recession and GDP has grown by 0.6%.
The recovery of Germany and France, the country’s largest export markets, also sounded a note of optimism.
Mechanical machinery and equipment
Italy’s engineering sector, covering mechanical machinery and equipment, is now the second largest in the EU and fast catching up with leading manufacturer Germany. It produced 18.7% of machinery in the EU in 2008 and also made significant gains in Russia, Africa and South America.
The sector is dominated by small, family-owned businesses, with the average size of workforce being around 13 people, which is the lowest in Europe. There are over 41,000 manufacturing and engineering companies in Italy and while some claim the sector’s strength lies in the very personal and ‘small is beautiful’ approach of a family business, others claim that this is a risky strategy as old-fashioned attitudes and family loyalties may impede progress in a global market.
Considering Italy has very few mineral resources and has to import most of its raw material, its metal industry is a large and important one in the nation’s economy, particularly regarding exports
Italy’s growing success in the sector has been through focussing on its strengths – quality of design and steady output of mid-range engineering products from small, flexible companies with their sites firmly set on the world markets.
Basic metals and fabricated metal products
Considering Italy has very few mineral resources and has to import most of its raw material, its metal industry is a large and important one in the nation’s economy, particularly regarding exports. Half of the country’s iron output comes from the Isola d’Elba off the coast of Tuscany.
Italy has 50,000 businesses and 850,000 workers in the metal industry, the majority in the north. In the iron and steel industry many of the large companies are in the centre and south of the country.
Transport equipment
Italy’s automobile industry is the country’s largest employer with an estimated (2004) 196,000 employees. The automobile sector is dominated by Fiat which ranks number ten in the world’s top motor vehicle manufacturing companies, although as a country Italy ranks only 17th in terms of motor vehicle producing countries.
Fiat went into partnership with US auto manufacturer Chrysler in May 2009, a clear indication that is now seeking to conquer international markets after its dominance of the domestic one. It also intends to bring the Alfa Romeo back to the US market.
The company posted its highest ever profits in the last quarter of 2008, defying the global downturn. As well as production and export of iconic luxury brands like Lamborghini, Ferrari and Maserati, the transport export sector also includes city cars, passenger vehicles, transport vehicles, trailers, and auto parts and accessories.
The government’s introduction of incentives to trade in older cars for more energy efficient ones has resulted in new car registrations rising by 16% in October.
Chemical products and synthetic fibres
This is a crucial sector for Italy With a turnover of €57bn it is the fourth largest chemical producer in the EU. There are three thousand companies in the sector employing around 126,000 people.
Of the 200 or so industrial districts in Italy, almost all have some connection with the chemical industry. The main concentration of Italy’s chemical business is in the north of the country, which accounts for 68% of the chemical companies. Lombardy (Lombardia) alone accounts for almost half of that percentage and is the top region in Europe in terms of number of companies in the chemical industry and second largest region in terms of employees.
