“Made in Italy”: morphology, role and
economic data on industrial districts
Prof. A.Sinatra
a.a. 2011/2012
The performances of the Italian
industrial system
Italy shows exceptional performances in the fields of consumer products
such as textiles, clothing, footwear, eyewear, furniture and interior design,
that economic theories were reserved for countries with low production costs
(labor).
The numbers are impressive:
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•
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40% of the global exports of the ceramic industry comes from Sassuolo;
Biella and Prato rule the wool industry with a quarter of the world exports
The women's hosiery of Castel Goffredo controls the 40% of the global
exports
15% of the world exports in the following sectors: silk (Como), jewellery
(Arezzo and Vicenza) eyewear (Belluno), marble (Carrara).
..a paradox!
The tie between these goods and their innate Italian characteristics
(their Italianism) does not only reflect the life-style, but also the
product of a particular “road to an industrial development”,
which draws its strengths from local institutions, social networks,
organizational forms and entrepreneurship, which history lies in
the sediment of the Italian industrial districts.
Made in Italy’s “4A”
The industries where the Italian economy has peaks of excellence may refer to
three basic systems and the mechanic-automation specialized industry in
support of each one of them. From this interpretation comes the expression "Le
4 del Made in Italy“ (Made in Italy’s “4A”)
Fashion
mechanic-automation
Food
Forniture
The Italian industrial structure
Is there a typical Italian business model?
The Italian industrial structure includes:
•
A small group of very big companies with a long tradition history,
deeply rooted in some important families (Agnelli, Pirelli, Falck, etc.)
supported by financial institutions (MedioBanca, Assicurazioni
Generali, etc.).
•
A group of big companies formerly controlled by the italian
government supervision (now privatized or in a privatization process)
as Telecom Italia, Enel, Finmeccanica, which aspire to become global
corporations.
•
A dynamic system of SMES that cater mostly to foreign markets,
specializing in the typical fields of the Made in Italy and operating
within the industrial districts.
The Italian industrial structure:
the classification schemes 1/3
What is the meaning of large, medium or small
enterprise: the employment policy
•
In Italy we consider the following levels:
• Small companies: < 50 employees
• Medium companies: 50 < employees < 500
• Large companies : >= 500 employees
•
According to the European Union :
• Small companies: < 50 employees
• Medium companies: 50 < employees < 300
• Large companies : >= 300 employees
The Italian industrial structure:
the classification schemes 2/3
What is the meaning of large, medium or small enterprise:the mixed
method
•
Used by the office of the “Studi Mediobanca e Unionacamere” (2004)
• Small companies: 1-49 employees and less than 13 mil € turnover
• Medium companies: 50-499 employees and 13< turnover < 260 mil
€
• Large companies: more than 500 employees and more than 260 mil
€ turnover
•
According to this classification the small companies represent the 62%
of value added in the manufacturing industry, the medium ones the
14% and the large ones the 24%.
The Italian industrial structure:
the classification schemes 3/3
The large companies: the classification of enterprises according to the Edison
Foundation
 It adds specific levels of turnover to the occupational requirement
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“Grandi Pilastri” (big pillars): companies with more than 10 billion
€ turnover
“Pilastri”(pillars): companies with turnover between 2 and 9,99
billion €
“Colonne”(columns): companies with turnover between 0,5 and
1,99 billion €
Italy has only 4 “Grandi Pilastri”; 22 “Pilastri” and 86 “Colonne”. But only 43
are part of the 4 sectors of excellence of the Made in Italy
The Italian industrial structure of
“Made in Italy” 1/2
The Made in Italy typical sectors do not include any “Grande Pilastro“, 5
“Pilastri” and 36 “Colonne”.
LUXOTTICA
BARILLA
FERRERO
MERLONI
BENETTON
The Italian industrial structure of
“Made in Italy” 2/2
 Basic role of SMEs for the manufacturing italian industry
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•
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90,7% employment
77,6% export
The majority of these companies is located in the so-called
"industrial districts”
Examples of industrial districts in the
textile-fashion sector..
 The footwear of Asse del Sempione or of Vigevano
 The wool clothing of Prato and Biella
 The knitwear of Carpi (MO)
 The eyewear of Belluno
 The silk of Como
 The sport shoes of Montebelluna (TV)
 The women’s hosiery of CastelGoffredo (MN)
Examples of industrial districts in
the interiors-furniture sector..
 The kitchens of Pesaro
 The furniture of Alto Livenza (PN)
 The sofas of Matera, Altamura and
Santeramo
 The interiors of Brianza
Examples of industrial districts in arts..
 The dolls of Canneto sull’Oglio (MN)
 The gold jewelry of Arezzo, of Valenza Po or of Vicenza
 The glass of Murano
 The musical instruments of Cremona or Castelfidardo
(Marche)
Examples of industrial districts in
ornamental materials..
 The marble of Carrara
 The slate of Lavagna (Liguria)
 The ceramics of Civita Castellana (VT)
 The marble and granite of Valpolicella (VR)
 The granite of Gallura
 The fired roof tiles of Possagno (TV)
 The ceramic tiles of Sassuolo
 The porphiry of Val di Cembra (Trentino)
Examples of industrial districts in
food products..
 The truffles of Acqualagna and Alba;
 The ham of Parma or of San Daniele (Friuli);
 The sheep products of Thiesi (Sardegna);
 The preserves of Nocera Inferiore (Campania);
 The olive oil of Imperia.
Industrial districts in Italy
The “third Italy”..
Italian Industrial Districts..
This economic model is known as the industrial district:
a limited territorial system where a rich permeation has been created
over time between the daily life and the production activities of its
inhabitants.
Drivers:
a) historical and natural heritage;
b) artisanship – path dependency;
c) agglomeration of firms;
d) close community;
e) interplay between society and business.
Italian Districts in the World..
 Industrial Districts are present not only in Italy. They have been
identified in Japan, USA, Germany, France, Spain, Portugal,
Denmark, Sweden, Brazil, Mexico, India, even if…
 …the
Italian case has stimulated an international debate,
involving not only academicians, but also politicians and
entrepreneurs, and imposing itself as a development model
worldwide.
 The economic role played by the Industrial Districts in the Italian
economy is evident in the light of their relevance with respect to
the manufacturing industries as a whole.
Recent picture of Made in Italy..
 Made in Italy and typically Italian industrial districts are still the
wealth of this Nation, but in order to maintain such wealth it is
necessary to react to the global competition and internal
weaknesses with appropriate strategies.
 Until 1990 the global market for “Made in Italy” symbols was
growing at a rate of 10% per year. This was an almost-paradoxal
situation since demand was higher than the offer.
 Among 1996 and 2000 “Made in Italy” had again a sort of
«golden age», but the new millenium has started with a deep
crisis for typically Italian productions. 2003 has been so far the
worst year in competitive terms on a global scene.
 As showed in the following data, today, “Made in Italy” has to face
important and urgent strategic issues…
Today’s
Strategic Issues of Made in Italy 1/2
 Is the average Italian company size (small) an impediment to the
overall development and growth of the system?
 Is the model of industrial districts still capable of generating a
competitive edge worldwide?
 Is the specialization of Italy in traditional industries (the paradox
of Made in Italy) sustainable in the long run?
 Whether and how Italy may overcome a Made in Italy anchored on
traditional industries?
Today’s
Strategic Issues of Made in Italy 2/2
 Can Made in Italy still shift the basis of its competitive advantage
from material (manufacturing) to immaterial elements (style)?
 After 40 years of absolute leadership in traditional sectors, Italy is
facing a new competition coming from low-cost countries.
 District companies in the Made in Italy industries are excellent in
continuous incremental product and process innovation, but
they face difficulties in sustaining R&D projects.
“Made in Italy”
National Observatory Report 2012 Italian Regions
Prof. A.Sinatra
a.a. 2011/2012
Districts of Observatory: summary of the most
important phenomena from the Report III
The Report 2011 showed the alternation of a brief revival
and some structural problems in the regions.
Some positive signs, such as the increase in turnover and
export, are very important but the forecasts for 2012 still do
not portend the start of the recovery.
Districts of Observatory: summary of the most
important phenomena from the Report III
However, what matters is once again the ability of the
regions not only to face the permanent recession, but
also to anticipate the trends and to show the capacity
for interrelation and cooperation between businesses,
as a way to attract investments, to get to new markets
and to reach sustainability.
Districts of Observatory: summary of the
most important phenomena from the Report III
Strategic vision of the regional business: returning again to
eco-compatibility not only by investing in the production
level but also by inserting specialized staff:
The "green way" is not an imposed cost or a stratagem but
a characteristic element of the production processes, the
driving force to increase competitiveness required in order
to get to the international markets.
Districts of Observatory: summary of the
most important phenomena from the Report III
The grow is not only caused by the new investments in
innovation but also by a cultural shift that starts, first of all,
from the entrepreneurial class and the major players
operating in the local dimension.
Districts of Observatory: summary of the most
important phenomena from the Report III
"We must think about the manufacturing industry - so
important for a country like Italy - more than in terms of
sectors of industries or individual companies, as a reality of
localized industries that makes significant part of its
competitiveness from the happy union of a production
structure with a historical, infrastructuring and cultural
consolidation in the long term”.
(Becattini, Sole 24 Ore December 29, 2011)
The industrial districts in numbers
The numbers of Italian industrial districts *-Years 2008
and 2009
Industrial districts:
exports and markets
Main sales markets of the district companies in 2010
and in 2011 (in% of the total of the respondent
companies)
Industrial districts: investments
Investments by the companies in the district
(in% of the total enterprises)
Industrial districts: investments
Reasons why the district companies intend to
ask a bank loan in the first six months of 2012
(in% of the total enterprises that intend to ask credit resources, net of non-responses)
The competitive model of the
district systems
Market strategies followed by the District
companies in 2012
(in% of the total enterprises; multiple answers)
Industrial districts: profitability
Industrial districts today:
a perspective
Districts: evolution of turnover
(% change in turnover; median values)
Industrial districts today:
a perspective
Districts: evolution of the margins and rotation rate of
capital invested (median values)
Industrial districts today:
a perspective
NET operating margins in% of turnover (median values)
Industrial districts today:
a perspective
Districts: evolution of ROI and ROE
(median values)
Districts in a stronger growth
January-September 2011 (expressed in €)
Export per sector of the 101 main Italian
manufacturing districts towards EU
countries: January-September 2011
Industrial districts today:
innovation and internationalization
District and district business not according to the indicator of innovation (val.)
Imprese distrettuali e non, e processi di internazionalizzazione (val. %)
Strategic Issues of Made in Italy
Q&A?
Prof. Alessandro Sinatra
A.A. 2011/2012