More than 48 companies analysed, from which it emerged that between 2008 and 2015 there were almost 6 percentage points of growth for companies in districts compared to non-district areas. THE industrial districts in short, they drive Italian manufacturing, growing by almost 2% annually in the last two years: they command the ranking of the top 15 agri-food and fashion companies, while as many as 8 – more than half – are located in the North-East.
This is what emerges from the Annual Report on the economic and financial situation of the district enterprises, presented today by the Studies and Research Department of Banca Intesa Sanpaolo. The Report analyzes the company financial statements of the last six years (2008-14) of almost 13.000 companies belonging to 147 industrial districts and of 35.250 non-district companies active in the same specialized sectors.
The Report presents the estimates on the financial results of companies in 2015 and the forecasts for the two-year period 2016-17. Finally, the analysis dwells on some important innovations that are affecting the district production fabric and which in the future can contribute to the relaunch of the district territories, through the affirmation of a new class of highly competitive and dynamic medium-sized enterprises.
Results 2014-15
DISTRICT COMPANIES TURNOVER GROWTH ACCELERATED AND AT HIGHER RATES THAN NON-DISTRICT COMPANIES
In the two-year period 2014-15, the turnover at current prices of district businesses grew by an average of 1,9% for the year, showing a better trend than in non-district areas. Between 2008 and 2015 they are almost 6 percentage points more growth for district businesses compared to non-district areas. Furthermore, the districts have completely recovered what they lost during the crisis and have returned to the turnover levels of 2008. On the contrary, outside the district boundaries the gap is still significant.
In the districts, then, it resulted better the evolution of employees compared to non-district areas: the most dynamic district firms showed a higher growth in employment; even the district enterprises in the most difficulty have shown a greater employment retention. In districts, for example, a fifth of companies between 2008 and 2014 recorded an increase in employees of more than 38%, five percentage points more than in non-district areas. These results can also be explained by the district organisation, which favors mobility within the districts (between one firm and another) and the transition from firms in difficulty to firms in expansion.
A new, successful generation of medium-sized businesses is emerging
In the districts we have witnessed the affirmation of one new medium-sized business class, capable between 2008 and 2014 of significantly increasing turnover (+10%), of increasing its employees (+5% approximately), of strengthening its levels of labor productivity and profitability, also leveraging on a structure more solid assets.
It is above all thanks to the drive of these companies that the districts have shown good results evolution of productivity, managing to almost entirely offset the increase in labor costs per employee, unlike what was observed in non-district areas.
This new winning generation of medium-sized enterprises together with the consolidated lead groups are driving the performance of many areas of district excellence. By sorting the industrial districts by growth and income performance, it is possible to obtain a ranking of 15 best districts. All Italian production chains and macro-areas are represented: the agro-food (6) and fashion system (4) districts and the districts of the North-East (8) and Center (4) prevail. At the top and very close are two Veneto districts, the eyewear of Belluno and the Prosecco of Conegliano-Valdobbiadene.
Competitiveness factors of the districts
The Report focuses on the strategic factors that can contribute to the structural maintenance of better results in districts compared to non-district companies. Over time, in fact, we have witnessed the progressive accumulation of one greater ability to export, make foreign direct investment, register patents and trademarks. Districts are confirmed as privileged places for the diffusion and adoption of complex behaviors and catalysts of technological, organizational and market innovation.
In the districts, in fact, it is not only the share of companies that export is higher (38,4% vs. 29,4%), but the percentage of companies with export activities and having internationally registered trademarks is even higher (32,7% vs. 25,8%). Furthermore, among the districts the presence abroad with subsidiaries is more intense (24,9 investee companies for every 100 companies in Italy; in non-district areas it stops at 18) and the commitment on the innovation front is more important (about 50 patents for every 100 companies vs. 42).
Many district areas continue to offer productive externalities: some have become the almost exclusive seat of certain productions; others have seen new investments by medium-large national operators and have attracted the interest of foreign multinationals. The activities of tanning, footwear, goldsmithing, eyewear, musical instruments, tiles, knitwear, clothing and textiles are highly concentrated in the districts: more than 50% of the companies in these sectors are district-based.
In particular, in the districts they continue to play an important role local institutions, which have contributed to renewing the external economies for single enterprises, located in the district and not transferable from one place to another. The contribution of the institutions, which is the subject of a specific study in the Report, can range from the construction of infrastructures to the management of development projects abroad, from the provision of research services to the implementation of training initiatives.
Building on the success of Exhibition the Report focuses on the districts of theagro-industry. The district provinces are characterized by a higher concentration of PDO-PGI certified crops and livestock, a greater diversification of agricultural activity (such as agritourism for example) and a higher orientation towards the production and use of renewable energy. Furthermore, the average age of farm managers is lower than that of non-district provinces, while the percentage of diploma holders and university graduates is higher, with a higher degree of specialization in agricultural disciplines.
Therefore, the attraction of the highly specialized Italian territories, also confirmed by the reshoring process which sees a partial return to the districts of previously outsourced productions. Furthermore, acquisitions by foreign multinationals continued, attracted by the rich heritage of local expertise.
Forecasts for the two-year period 2016-17
IN 2016-17 AVERAGE ANNUAL TURNOVER GROWTH RATES AT 2,7%
The presence of new highly dynamic actors and positive externalities will represent important competitiveness factors for industrial districts, which should also show better performance than non-district areas in the coming years. In the two-year period 2016-17, according to Intesa's forecasts, there should still be a positive evolution in the turnover of district companies, spread to all the main production chains. An important support to the turnover dynamics will come from the internal market. Expectations for 2016 see, in fact, good stability in consumption and a strengthening of investments, thanks above all to the boost coming from the purchase of machinery, favored by the significant obsolescence of the existing stock and by the so-called Super Depreciation.
In two-year period 2016-17 the recovery phase of unit margins will continue, spread to all district sectors, favored by the evolution of operating costs and by the selection processes under way in the sectors most in difficulty. Furthermore, there will be an easing of tensions on the debt sustainability front, also thanks to the presence of particularly favorable credit conditions.
