THE ITALIAN WAY: CAPITAL EQUIPMENT AND SUSTAINABILITY

The capital equipment sector has been tested by the pandemic. With more than 13,000 companies, the sector generates added value of around €59 billion and contributes over 1% of Italy’s GDP. The sector however shows a good resistance thanks to innovation in supply chains and exports, valid levers on which it can restart.

The sixth The Italian Way event, focused on capital equipment and sustainability, was held on 21 July in Bologna in partnership with Federmeccanica and Fondo Metasalute, Italian capital machinery federation and the Italian health fund dedicated to steelworkers. 

Joining the discussion on how to restart the sector were Andrea Casini, Co-CEO Commercial Banking Italy UniCredit; Andrea Burchi, Regional Manager Centre North UniCredit; Alberto Dal Poz, President Federmeccanica; Luigia Mirella Campagna, Industry Expert UniCredit; Lucio Poma, Scientific Manager Industry and Innovation Nomisma SpA; Elio Catania, President Digital technical group Confindustria and President Quid Informatica S.p.A.; Antonello Marcucci, President Umbra Group and Advisory Board Member Centre North UniCredit; Carmelo Giuffré, Founder and Managing Director IRRITEC S.p.A and Advisory Board member UniCredit Sicily; Antonella Candiotto, General Manager Galdi srl and member General Council of Federmeccanica; Michele Poggipolini, Executive Director Poggipolini Spa and President young entrepreneurs Confindustria Emilia. 

1 The sector has been impacted by the crisis

Capital equipment constituted the largest segment of the manufacturing sector. It is made up of 13,000 companies that generate an added value of almost €59 billion a year and contribute to more than 1% of Italy’s GDP. It is a very cyclical sector and the economic impact of the heath emergency has been very negative. In 2020, we expect a drop in revenues of around 30-35%.

2 Exports: pros and cons in the post-Covid era

After Germany and China, Italy is the third-largest exporter in the world of capital instruments. The drop in global demand determined by the pandemic jeopardises foreign revenues. However, the large number of export markets (the top10 countries represent only 50% of the sector’s export levels) have allowed the sector to achieve a good differentiation in sales for each geographical area.

3 The sub-sectors hit by the Covid emergency 

The hardest hit sub-sectors are machine and textile industry tools, clothing and leather, metalworking machines. Less impacted are the sub-sectors of robotics, packaging, food & drink and paper processing machines.

4 The pillars to restart: innovation, supply chains and diversification

This crisis will impose the search for new entrepreneurial models to build a new beginning. The most strategic themes for the sector remain: innovation (the crisis has accelerated the path towards digitalisation and sustainability); supply chains (the pandemic has highlighted the importance of proximity and the need to have access to a network of distributors); and, lastly, the diversification of products, markets and sales channels.