Share

Focus Bnl: all the numbers of Italian companies

FOCUS BNL: How Italian companies have changed in numbers during 2010 – The decline of industrial and construction companies – Comparison with other European countries.

Focus Bnl: all the numbers of Italian companies

During 2010 the number of active companies in Italy decreased by 11.401 units; the figure is the result of a sharp decline in the industrial sector (-11.063 businesses), an even greater decline in construction (-15.584 units) and a sharp increase in businesses active in services, which grew by 15.246 units in one year. Overall, this is the worst annual drop recorded since 2003 (i.e. since Istat made these data available) after that of 2009.

The positive contribution of services accrued almost exclusively in the micro enterprise segment (+15.374 enterprises) with a marginal increase in the large ones, which rose by 26 units. The increase in businesses in the micro services segment was matched by a growth in employees increased by 5.772 units, however not sufficient to offset the decline recorded in the other business segments of services, whose final contribution to the overall employment trend was negative (-12.127 employees in the year), such as industry (-164.484) and construction (-89.473). Overall, the employees of Italian manufacturing companies therefore fell by 266.084 units, equal to -1,6% compared to 2009 after the -2% of the previous year

The movements in 2010 leave the composition of the Italian production system practically unchanged by company size, micro-enterprises continue to cover a percentage of around 95% of the total, but a much smaller share of employees (48%). On the other hand, the large ones, which in numerical terms represent just 0,1% of Italian manufacturing companies, employ 19% of workers.

The industrial decline concentrated in manufacturing
In the industrial sector, the decline in the number of businesses was generalized, but the greatest contribution came from micro-enterprises which lost 7.817 units in one year, 2% of those active the previous year; the drop in small businesses was also heavy (-2.735, equal to 3,8% of those in business in 2009), while among medium-sized businesses the departure of 477 units reduced the number by an amount equal to 4,8% . The situation is different for large companies, which limited the decline to 34 units which, however, compared to the total, represent 2,2% of the segment. Among the industrial micro-enterprises that were penalized above all were those active in manufacturing: between 2009 and 2010 there were 9.041 fewer units, which overall resulted in a reduction of 31.855 employed.

The greatest drop was recorded in the metal product manufacturing sector: every 10 micro-enterprises closed in the manufacturing sector 4 (for a total of 3.845 units) operated in this sector 1. As a consequence, the contribution to the drop in employees was also very high : -11.683, equal to approximately 37% of all those lost in the world of manufacturing micro-enterprises. The number of micro-enterprises active in the manufacture of clothing items (-1.913 units), in the manufacture of products from non-metallic minerals (-1.036) and in the food sector (-784) also dropped significantly. There are very few sectors in which an increase in the number of micro production units has been recorded, including mechanics (+740 companies, with a contribution of +2.643 employees), vehicle manufacturing (+127 companies) and, albeit in a very content, pharmaceuticals (+20) and chemistry (+7).

In the world of very small manufacturing companies, 2010 also brought important changes in other indicators; compared to the previous year, the overall cost of labor and the amount of investments fell sharply; however turnover, added value, and added value per employee (one of the most common measures of productivity), recorded substantial average increases, however, the result of an extremely heterogeneous trend between sectors. The added value per worker in particular has increased by an average of 1.700 euros, with higher peaks in the manufacture of leather, rubber and metallurgy items. On the other hand, substantial declines were observed in pharmaceuticals and in the manufacture of means of transport. Among medium-sized industrial companies, the decline, which occurred exclusively in manufacturing, saw the peak in the metal product manufacturing sector, where 77 companies and 7.835 employees left the scene, in the machinery sector (-75 companies and -7.246 employees), in the textile sector (-54 companies and 4.659 employees) and in the non-metallic metalworking sector (-50 companies and 5.876 employees). Marginal increases are observed in the food sector (where, however, the number of employees decreases), paper and chemicals. Even among companies with 50-249 employees, 2010 brought an increase in productivity (added value per employee), on average equal to 10 thousand euros; but as in the case of micro-enterprises, an extremely heterogeneous trend can be observed between sectors. Lastly, among the large industrial companies, the decline (once again exclusively in the manufacturing sector, where production units fell by 39 units out of the 1.347 active in 2009) was more evident in the manufacture of metal products (-7 production units), in some textile sectors (9 companies in total), in the manufacture of motor vehicles and electronics (-5 each). Overall, manufacturing companies with over 250 employees in 2010 reduced the number of employees by 28.316 units, approximately 88% of what micro-manufacturing companies lost in the same period (31.855 employees).

Among the service businesses, only the micro ones are on the increase

During 2010, as mentioned, the services sector recorded a strong increase in businesses, which was concentrated exclusively among the production micro-units (+15.374 units). In more detail, the figure is the result of an extremely different trend even among the micro-enterprises themselves. Driving the increase was above all the segment of "professional activities" (+9.403 companies, concentrated in particular between legal and accounting activities and management consultancy), that of real estate services (+7.738 micro-enterprises), that linked to health and social assistance (+7.165 businesses), accommodation and catering services (+3.229 businesses) and activities related to lotteries, betting, casinos (+1.306 units). Conversely, there are 9.670 fewer micro-enterprises in wholesale and retail trade, 2.378 fewer in transport and warehousing and 1.335 fewer in information and communication services. Despite the increase in the 0-9 employee segment (which brought with it 5.772 new employees) the services sector lost 12.127 employees, due to the decline in all the other business segments, and in particular among the medium-sized ones, which lost 10.937 employees in one year. The decline in this band was particularly heavy in trade, where employees fell by 9.557 units. As in the case of manufacturing, there was an increase in both turnover and value added in services.

The movement that took place between 2009 and 2010 led to an evident, albeit still slight, repositioning of the productive economy towards services. Compared to 2009, the weight of this sector has grown in terms of number of businesses, employees, total added value and above all investments, which have come to represent 61,9% of the total, from 57,4% in the previous year to the detriment above all of industry, whose weight went from 36,8% to 31,3%. In industrial companies, however, investments per employee remain higher than in services (10 euros against 8.100), as does the added value per employee, which drops from an average of 56.900 euros per employee in industry to 38.100 in services. However, this gap closes almost completely if we look at micro-enterprises alone, in this case the 28.600 euros of an industrial enterprise are set against the 27.700 euros of a service company. The gap, on the other hand, widens among large companies where industrial productivity is approximately 50% higher than that of services (90.100 euros per employee against 60.490). The gap between small and large enterprises in terms of productivity also in 2010 remains wide in all sectors. On average, the transition from the micro dimension to the lower range of the "small" ones (10-19 employees) allows a productivity gain of 40%; between a small and a medium-sized company, the profit is reduced to 30%, similar to what a medium-sized company would earn by going to a large size.

In comparison with the main European partners, large companies are missing
The comparison between the structure of the Italian production system and that of other European countries is especially interesting in the manufacturing sector. Even in 2010, the distinctive Italian element remains that of the low number of large companies. In our country, production units with over 250 manufacturing workers represent just 0,3% of the total; this is a value slightly higher than the Greek one, but lower, among the main European partners, than that of France, where there are 1.531 large companies (0,7% of the total), and above all of Germany, where the 3.953 large manufacturing enterprises are practically three times those present in Italy and represent 1,9% of the total. Even in the United Kingdom, large companies represent a larger portion of the production system (1,1%), as well as, among the main countries of Eastern Europe: in Poland (0,9%) and above all in Romania, where around 722 large companies were present out of a total of 48.933 (equal to 1,5%).

On the other hand, the Italian companies present in the micro band represent an average percentage (about 82%) of that of the main European countries, lower, for example, than the French figure (85,5%), and in line with the Spanish one (82%). but largely higher than the German figure which is just over 62%. Among the countries of the euro area, Greece boasts the primacy for the weight of micro enterprises out of the total (95%), while among the destination countries for production relocations in the last two decades, the Czech Republic leads the ranking with a weight of micro enterprises equal to 92,5%; the weight is lower in Romania (72,2%), while in Poland it reaches 87,5%. As a consequence, Italian manufacturing companies remain among the smallest in Europe, with an average size of 9 employees, against 20 in the United Kingdom, 15 in France, 11 in Spain and 33 in Germany, a country in which, moreover, it has been observed a notable contraction from the previous year's 37 employees. Among the countries of Eastern Europe, Poland has about 14 employees per manufacturing company, while Romania has the highest value after Germany: 23 employees.

The dimensional gap between Italian and French and German companies widens above all among the large production units; in this segment, each Italian firm has an average of 713 employees, 191 fewer than a German and 174 fewer than a French one. This smaller weight of large firms is also reflected in terms of overall added value achieved by them: in Germany firms with over 250 employees, they realize 65,4% of the total added value, in France 54,7%, while in Italy only 32,3%. Even among the countries of Eastern Europe, the contribution of large companies is significant: in Romania this business segment covers 58,6% of the manufacturing added value, in Poland 58,1%, while in the Czech Republic 55,7% %. As a natural consequence, the Italian companies in the smaller segments cover higher percentages than their European partners, this is evident above all in the 20-49 segment, where an Italian value of 15,8% is matched by a German one of 5,2% and a French one of 9,6%. The imbalance of the production structures of France and above all Germany towards a firm size greater than the Italian one is perhaps also due to greater economies of scale that the transition from one size to another entails, above all in the higher classes. In Germany, a manufacturing company that goes from medium to large gains 50% of added value per employee, in France the increase, still in manufacturing, is equal to approximately 36%, while in Italy it does not reach 13%.

comments