page 2 of 2 2007.04.23

Italian Textile Machinery Is Recovering

An in-depth sector review
The study has provided some points for reflection in this sense, having, as a focus for this fifth study, competitive strategies that Italian companies are urged to implement to give them a greater chance of continuing to play a leading role on the world market. The study, conducted by Prometeia, provided a snapshot of the Italian textile machinery industry, based on corporate financial statements and world trade flows in the period 1990-2005.
Although the analysis concluded with 2005 figures, the study highlights how the Italian textile machinery industry is undergoing a process of major change and the negative effects this has had on the balance sheets of Italian companies, hitting profit margins across the board. Competition remains fierce among businesses in the industry, and the rapid changes happening in the textile-clothing industry globally have made business an ever harder challenge.
“Our industry has been tested by particular difficulties” Banfi points out, “such as downsizing on western markets and the emergence of the East, generating also local competition, but there is an additional hurdle. I am referring to phenomena such as appreciation of the euro against the dollar, which has weakened Italy’s standing on many foreign markets, and the recent rise in interest rates that makes it even harder for companies to obtain financing from banks. But some other obstacles lie beyond economic aspects and could easily be overcome by a steadfast political resolve: this is the case, for example, of the age-old problem of issuing visas, or the numerous obstacles erected by red tap getting in the way of training for foreign engineers in Italy.”
The study has revealed how focusing on the product remains the key to success for Italian manufacturers of textile machinery. But researchers at Prometeia caution against straightforward optimism. In the future, in fact, quality products will increasingly need to be accompanied by corporate policy optimising the innovation process for customers scattered around the world, who have different or even contrasting needs.
After the study was presented, a round table was organized to consider the issue of how the needs of customers located in different areas can be identified. Some textile machinery businessmen, Rino Morani (Itema Group), Alberto M. Sacchi (Htp Unitex) and Renato Zanca (Mesdan) used the occasion to share their experience in developing long-haul networks that reach far beyond the industrial district.