Piedmont's Manufacturing Struggles Amidst Weak Export Outlook for 2025
An analysis of industrial challenges in one of Italy's key manufacturing regions, exacerbated by difficulties in the automotive and textile sectors.
Piedmont, historically a powerhouse of Italian industry, is confronting a challenging start to 2025, compounded by diminishing prospects in two of its cornerstone sectors: automotive and textiles.
The latest forecasts from Turin’s Union of Industrialists highlight these challenges, with companies in the region reporting more pessimistic expectations for production and orders in the first quarter, especially till March.
"We've experienced a decline in industrial production lasting 21 months across Italy, and Piedmont and Turin are no exceptions," stated Marco Gay, President of the Union of Industrialists of Turin.
Despite these setbacks, Gay remains optimistic, especially about the region's commitment to investment.
"Investment propensity remains strong, with three-quarters of companies maintaining their investment trajectory, and notably, a quarter of them directing their focus towards new facilities in metalworking," he added.
The region's diverse industrial fabric provides both challenges and opportunities, as sectors like food and chemicals continue to thrive.
The automotive sector remains a significant concern.
"The mobility issue is a pan-European problem, as evidenced by the declining operational profits among the major automakers," Gay pointed out.
Innovation and investment towards technological neutrality are seen as crucial for overcoming these hurdles.
Industrial policies at local, national, and supranational levels are deemed critical by industry leaders to revitalize the sector.
An upcoming meeting with the region's various provincial industrial representatives aims to address these issues.
"We must focus swiftly on supporting the automotive supply chain, whose expertise is crucial across European networks," emphasized Gay.
Export activities are showing signs of distress, with indicators reflecting a negative shift of nine points, a downturn from late 2024. According to Unioncamere, both production and export performances have been negative over recent quarters.
From January to September last year, cross-border sales dropped to 45.6 billion euros, a decline from 47.3 billion euros during the same period in 2023, marking a year-over-year contraction of 3.5%.
The reduction sequences, -2% and -6.7% in the first two quarters, were followed by a -1.3% from July to September.
Production also mirrored this declining trend across the first three quarters of 2023.
"All provinces in Piedmont are reporting generally negative indicators, with few exceptions," noted Andrea Amalberto, President of Confindustria Piemonte.
The energy factor adversely impacts companies, as Italian industry already endures higher prices than other European countries.
"However, stockpiling secures the upcoming months, hence it's vital to prevent any form of alarmism," Amalberto advised.
The latest forecasts from Turin’s Union of Industrialists highlight these challenges, with companies in the region reporting more pessimistic expectations for production and orders in the first quarter, especially till March.
"We've experienced a decline in industrial production lasting 21 months across Italy, and Piedmont and Turin are no exceptions," stated Marco Gay, President of the Union of Industrialists of Turin.
Despite these setbacks, Gay remains optimistic, especially about the region's commitment to investment.
"Investment propensity remains strong, with three-quarters of companies maintaining their investment trajectory, and notably, a quarter of them directing their focus towards new facilities in metalworking," he added.
The region's diverse industrial fabric provides both challenges and opportunities, as sectors like food and chemicals continue to thrive.
The automotive sector remains a significant concern.
"The mobility issue is a pan-European problem, as evidenced by the declining operational profits among the major automakers," Gay pointed out.
Innovation and investment towards technological neutrality are seen as crucial for overcoming these hurdles.
Industrial policies at local, national, and supranational levels are deemed critical by industry leaders to revitalize the sector.
An upcoming meeting with the region's various provincial industrial representatives aims to address these issues.
"We must focus swiftly on supporting the automotive supply chain, whose expertise is crucial across European networks," emphasized Gay.
Export activities are showing signs of distress, with indicators reflecting a negative shift of nine points, a downturn from late 2024. According to Unioncamere, both production and export performances have been negative over recent quarters.
From January to September last year, cross-border sales dropped to 45.6 billion euros, a decline from 47.3 billion euros during the same period in 2023, marking a year-over-year contraction of 3.5%.
The reduction sequences, -2% and -6.7% in the first two quarters, were followed by a -1.3% from July to September.
Production also mirrored this declining trend across the first three quarters of 2023.
"All provinces in Piedmont are reporting generally negative indicators, with few exceptions," noted Andrea Amalberto, President of Confindustria Piemonte.
The energy factor adversely impacts companies, as Italian industry already endures higher prices than other European countries.
"However, stockpiling secures the upcoming months, hence it's vital to prevent any form of alarmism," Amalberto advised.
Translation:
Translated by AI
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