Made in Piedmont flies around the world. According to the periodic Monitor of industrial districts edited by Intesa Sanpaolo, the export trend of Piedmont's industrial districts in the second quarter of 2019 was positive: foreign traffic increased by 199 million euros, corresponding to an increase of 7,4%. The Piedmontese districts stood out by outperforming both the Italian districts (up by 2,8%) and the Piedmontese manufacturing sector (down by 1,6%, penalized by the decline in the automotive sector) and reached the historical maximum of exports (2,9 billion euros) and trade balance (1,9 billion euros) for the quarter. The data relating to the second quarter of 2019, together with the brilliant results of the first quarter allowed the Piedmontese districts to close the first six months of the year with an exceptional result: all the Piedmontese industrial districts achieved growth in exports, six of which with a double-digit growth rate.
Export growth in the first half of 2019 was 7,9%. Instead, it refers only to the second quarter of 2019 9 out of 12 districts are growing. The Goldsmith district of Valenza, with an increase in the value of exports of 107 million euros (+20%), provided the greatest contribution to the growth of the Piedmontese districts in the second quarter of 2019. After a first quarter of decline, in fact, the exports of the district restarted, bringing Valenza back to first place among the Italian gold districts. Despite the significant contribution of Valencia, the growth of Piedmontese exports cannot be completely attributed to this district. In fact, even excluding Valenza, the Piedmontese industrial districts would have recorded a growth of 2019% in the second quarter of 4,3. The food & beverage districts are all growing on foreign markets: Piedmontese hazelnuts and fruit (+29,5%), Langhe, Roero and Monferrato wines (+13,3%), Alba and Cuneo desserts (+10,7%), Vercelli rice (+7%) and Coffee, confectionery and Turin chocolate (+3,7%).
The mechanical districts were less brilliant: Machine tools and industrial robots in Turin (-5,5%), Textile machinery in Biella (-2,7%), Taps and valves in Cusio-Valsesia (+1,7%). The industrial refrigerators of Casale Monferrato are an exception, which thanks to the increase in traffic to the United States, the United Kingdom and Switzerland managed to close the quarter with an export growth of 13,6%. Exports of Omegna housewares are down (-4,1%). On the other hand, the fashion system, represented by Tessile di Biella, was substantially stable, with exports reconfirmed at 558 million euros. Exports are doing well both to traditional outlet markets (+7,9% the trend change in the second quarter of 2019), and to new markets (+6,2%). Exports to more distant markets grew more (+13,1%), less those to the closest commercial outlets (+5,5%).
In particular, the results were excellent in: France, United States, Hong Kong, Japan, Germany, Spain, Austria, Latvia and Croatia. On the other hand, Switzerland (in a physiological slowdown after the leaps of recent years), the United Kingdom, China, Australia and Poland are in decline. The picture for the last part of 2019 is uncertain due to the slowdown in the German economy and the multiple tensions present on the international markets. From 18 October next, the United States will impose tariffs between 10% and 25% on about 7,5 billion of imports from the EU, affecting imports of civil aircraft and various agri-food products. The United States is the fourth largest market for the Piedmontese industrial districts, with a weight of 8,8% on total exports in 2018. Compared to the currently widespread list of products subject to new duties, the Piedmontese district most affected by the provision will be that of the Langhe, Roero and Monferrato wines , for which the United States currently represents the first market, with a share of 20,4%.
The risk of a rise in US duties on imports of cars and components, on the other hand, is postponed to November and could also have important repercussions on the Italian and Piedmontese automotive supply chain. At the same time, the climate of tension between the United States and China remains, despite the resumption of negotiations. The risk of a UK no-deal exit is also high. In recent days moreover, tensions in the Middle East further intensified. Added to these risks are the anti-government protests and riots in Hong Kong and the tensions between Japan and South Korea. In a context that has become volatile and no longer one of widespread growth, the risk is that the export trend of the Piedmont districts could polarize between districts capable of seizing the change and growth opportunities that may emerge in some areas of the world and others that will not be able to act quickly and will remain trapped in the eventual closures and/or tensions of their main outlet markets.
