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Work, businesses return to Italy: goodbye relocation

Italian companies are starting to return to their homeland after years in which, due to the crises, they have chosen to relocate production to Eastern European countries or to China - The quality of Made in Italy is once again a more important tool than cutting costs to compete internationally

Work, businesses return to Italy: goodbye relocation

Italian companies return to Italy. After years in which manufacturing emigrated abroad, setting up a massive phenomenon of delocalisation which resulted not only in the loss of numerous jobs, but also in a worsening of the quality standards of Made in Italy products, the trend seems finally having begun to reverse its course, thanks to the return home of numerous companies.

Between the end of the 90s and the early 2000s, there was a widespread belief that there were only two ways to compete globally: reduce labor costs and considerably lower energy costs. From 2008 to 2012, at the height of the crisis, these two factors no longer represented an industrial strategy, but a real need. There was only one way to do this: to move the headquarters of one's company beyond national borders, to countries where less money was spent, both for workers' wages and for production in the most general sense of the term. In the four-year recession, 80% of Italian companies chose to relocate, moving above all to Eastern European countries such as Bulgaria, Poland, Romania and Hungary.

2016 seems to be the year of change. Although the problems concerning the tax wedge and the cost of energy have not been eliminated in a structural way, many companies have decided to change their plans, focusing precisely on that quality that only localization on the national territory can guarantee. Competitiveness is maintained by insisting on a brand that has always been synonymous with excellence: Made in Italy.

As Il Sole 24 Ore points out, the latest examples of "return to the homeland" are Natuzzi, Ciak Roncato, Fiamm, Danfoss, Argo Tractors, And Camincie.

The Cer, Centro Europa Ricerche, has published a report, created in collaboration with Unindustria, on the reshoring of Italian manufacturing.

Based on data updated to June 2015, there were 101 companies that had relocated production to Italy, returning from China (34,6%) and Eastern Europe (26,7%).

Returning to Italy are above all the companies active in the textile-fashion clothing sector, the leading sector of Made in Italy (43% of returns) followed by those that deal with electrical and electronic equipment (21%) and by mechanical companies ( 8,9%).

As previously stated, despite the first positive signs there are, there are still many companies that experience difficulties in returning to Italy, first of all, the cost of labor and the existing obstacles to the activation of production return processes.

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