In the second quarter of 2017 the export of the 147 Italian industrial districts mapped by Intesa Sanpaolo maintained a good growth profile, recording an increase at current prices of 4,3% on the second quarter of 2016. The levels of exports and the trade balance reached new records, rising respectively to 25,2 and 16,8 billion of Euro. The districts are confirmed as central to the Italian productive landscape and alone represent almost 70% of the trade surplus of the entire manufacturing industry.
The growth concerned a large part of the district-intensive sectors and involved 94 of the 147 districts monitored, a historically high number. In terms of intensity of growth, the districts of the engineering sector once again stand out (+5,6% the tendential variation), also driven by the recovery in producer prices which above all affected the more upstream phases of the production process. The Metalli of Brescia, the Metalmeccanica of Lecco, the Mechanics instrumentale of Vicenza and the Metalmeccanica of the Lower Mantua were particularly brilliant. Once again the Italian engineering districts achieved better results than their German competitors. This is an important result for a sector that is also benefiting from the boost in demand from the domestic market, revitalized, after difficult years, by the Industry 4.0 plan.
Signs of acceleration have affected the districts that produce consumer goods in the fashion system (+6,7% the tendential variation). The goldsmith's shop of Valenza, the leather goods and footwear of Florence, the leather goods and footwear of Arezzo and the clothing of Empoli stood out. In particular, Valencia stands out, by far the best district in the second quarter of 2017: its exports rose to 660 million euros, 220 million more than the previous year, thanks above all to the jump in flows to France (+ 176 million) which can be traced back to the start of production at the Bulgari plant, part of the French group LVMH.
The pace of the other district supply chains was slower: growth rates of around 2,5% involved the district areas specialized in the agro-food and furniture industry; the increase in flows from the districts that produce intermediate goods for fashion and construction products and materials was just positive.
In the agri-food sector the picture is varied: we note the recovery of the dairy sector, while wines, meats and cured meats and the agricultural sector continue to give positive results. However, after a period of growth, foreign sales of the pasta and desserts chain are down. The sales of the sectors belonging to the canned food chain maintain the negative trend. Finally, the districts specialized in the production of olive oil continue to suffer from the difficult 2016 agricultural year.
Piedmont, Tuscany, Lombardy and Veneto lead the regional ranking for the increase in absolute value of district exports. In terms of intensity of growth, the districts of Puglia and, above all, of Abruzzo also stood out, brilliant again after years of severe crisis. The Marches are more in difficulty, whose districts show widespread declines and are most likely still feeling the effects of the earthquake that hit these territories last August. The losses suffered by the range hoods and household appliances hub in Fabriano were particularly intense, penalized by the ongoing restructuring.
The good momentum experienced by the district areas can be explained by a widespread recovery in exports, with the exception of direct flows to some Middle Eastern countries, held back by relatively low prices of energy raw materials. In particular, some important commercial destinations have once again become driving forces: among the traditional markets, France, Switzerland, Germany and the United States; among the new markets are China and Russia. Overall, exports from Italian districts to these countries rose by 850 million euros, more than 80% of the total increase. Exports to Brazil then resumed, thanks to the driving force of Mechanics Instrumental of Bergamo and Bresciano.
The high competitiveness of the Italian productive fabric on foreign markets is evident not only from the positive dynamics of the industrial districts, but also from the export performance of the high-tech poles: in the second quarter of 2017, the 22 Italian technological poles mapped by Intesa Sanpaolo in fact recorded a double-digit growth trend (+13,9%), driven by biomedical (+12%) and pharmaceuticals (+24%). In particular, the biomedical pole of Padua and the pharmaceutical poles of Lombardy and Tuscany were highlighted.
In the last part of 2017, exports from industrial districts and technological poles will be able to continue to grow at sustained rates, in the presence of demand conditions that will remain favorable in most of the main outlet markets. The only exception is represented by the countries of the Middle East. Several world economies in 2017 show signs of acceleration, starting with the euro area which still absorbs 40% of district exports. Russia and Latin America, after some difficult years, then returned to growth. China is also expected to record an increase in GDP of just under 7% this year as well. The recent strengthening of the euro, which rose to 1,2 dollars per euro, represents only a partial brake on the dynamics of district exports. Over the last few years, in fact, Italian district enterprises have learned to compete successfully on world markets, in the presence of much more penalizing exchange rate conditions.
2017 will also be a positive year for the districts more oriented towards the internal market and, above all, for the supply chains activated by investment goods. The availability of good financing conditions and the Industry 4.0 plan are, in fact, supporting the investment plans of Italian companies, with a significant impact on the order book of Italian metalworking companies.
Attachments: District Monitor November 2017
