ITALIA   AND   INDIA

Invest In Italy

10 reasons to invest in Italy

02.

Strategic logistic hub

Italy represents a strategic gateway to 500 million consumers across the European Union and to 270 million in Northern Africa and the Middle East and is the main thoroughfare linking southern Europe to central and eastern Europe. Transport networks include 6,000 km of motorways (AISCAT, 2016), 1,350 km of high-speed rail (RFI, 2017) and strategic ports for maritime freight and transshipment along the Italian coast and islands.

03.

Key manufacturing player

Italy is the 2nd largest manufacturing economy in Europe, the 5th largest globally (World Bank, 2017) and the 9th largest exporter in the world, selling goods worth EUR 448 Billion in 2017 (ISTAT, 2017), maintaining a 2.9% worldwide market share (WTO, 2017) and holding a rare export trade surplus for goods (EUR 47.5 Billion in 2017) among developed countries. Italy holds leading positions for trade surplus in 899 products out of 5,117 marketed goods (according to the most detailed breakdown of world trade by industry): 1st in 353 products, 2nd in 227 products and 3rd in 319 products (Fondazione Symbola, 2017).

04.

Made in Italy competitiveness

Investing in Italy means having access to unique expertise in leading sectors, such as robotics, fashion, design, and food.

Companies operating in Italy can also rely on extensive networks of SMEs and manufacturing clusters throughout the country, able to supply high-quality intermediate products specifically tailored to meet customers’ needs in a wide range of sectors (industrial machinery, metals, chemicals, plastics, paper, ceramics, textile, marine industries, etc.).

Continued global growth of the middle classes and the increasing numbers of tourist visits are resulting in increased demand for ‘Made in Italy’ products that are viewed as being prestigious and of high-quality.

05.

Skilled workforce

Italy’s skilled workforce offers an overall better cost performance than its comparable European partners. The labor cost in Italy is in fact below the Eurozone average and, on an hourly basis, labor costs in Italy are about 22% lower than in France and 16% lower than in Germany (Eurostat, 2017).

31 Italian universities are ranked in the top 500 academic institutions in the Times Higher Education World University Ranking (THE, 2017).

06.

R&D and innovation

Research and innovation are widely integrated into industrial processes with a long tradition of excellence in many fields of physics and engineering (e.g. robotics), life sciences (e.g. neurosciences), and social sciences and humanities (e.g. high-tech archaeological techniques).

Italian researchers, internationally recognized as highly productive in terms of articles and citations, actively participate and/or lead R&D European networks, such as the CERN physics laboratory, and top-level research infrastructures of transnational interest in sectors such as aerospace, systems biology, earth observation, nanobiotechnology, marine, and maritime research, etc.

Italy also ranks 5th in the EU for the contribution of high-tech and medium-tech products to the trade balance as % of total exports & imports of products, and 6th for design applications (Eurostat, Research & Innovation Performance Survey, 2014).

07.

Quality of life and cultural offer

Italian cities are overflowing with ancient monuments and treasures, and this – combined with its world-famous art, culture, music, food, and quality goods – gives Italy an unparalleled quality of life. Italy is ranked 1st worldwide for UNESCO World Heritage (53 sites as of end 2017). As a result, international tourist arrivals to Italy are more than 50 million annually, placing Italy 5th among the world’s top destinations (Untwo 2017).

As the 7th top global country brand relating to ‘experience’ (Nation Brand Index 2017), Italy inspires passion and interest over its heritage & culture, tourism and ‘Made in Italy’ goods. The ‘Made in Italy’ factor makes every brand unique and attractive.

08.

Pro investment incentives

Innovative investments: stimulate private investments in Industry4.0 technology drivers; increase private expenditure in research & development & innovation; expand open innovation relationships between mature companies and high-tech startups.

Skills: spread the I4.0 culture through educational and vocational training programs through Technological Clusters and Industrial PhDs; create Competence Centers and Digital Innovation Hubs.

09.

Open To FDI

According to the “FDI Confidence Index”, Italy ranked 10th overall in 2018, up from 13th in 2017 and 16th in 2016. Italy’s improvement was influenced by the several reforms enacted since 2014 to facilitate investments, including those to streamline labor policies and make starting-a-business easier (A.T. Kearney, 2018).

In 2016, Italy received USD 29 Billion of Foreign Direct Investments (including 181 investment projects), up from USD 19 Billion in 2015 and 135 projects (EY European Investment Monitor).

The Italian Association of Foreign Banks Index, measuring Italy’s attractiveness on data gathered from foreign managers and institutional investors, has increased from 33.2 in 2014 to 40.3 today.

In 2016, mergers-&-acquisitions in Italy reached EUR 49 Billion, the highest level since 2001 (Chiomenti Report 2017).

10.

Public support to foreign investors

As one stop shop, the Italian Trade Agency takes care of the full investment cycle.

Preinvestment information: market and business environment; taxes, the legal system, and labor market; incentive programme framework and financial scouting.

– Business set-up: location scouting & site visit; authorizations; permits for foreign investors; Human Resources research; Liaison Office with Public Administration.

– After care: assistance for new projects and expansion.

Economic profile

With a GDP of over € 1.7 trillion and a population of over 60 million, Italy is the world’s 9th largest economy. Italy is one of only five countries in the world whose manufactured products have an export trade surplus (over € 47 mln).

Italy’s control over public finance has been among the most solid in the Eurozone in the last 7 years. Since 2012 the deficit has been consistently below the 3% ceiling, and Italy had the highest primary surplus on average (1.1%) during the 2009-2016 period.

Italy is also one of the world’s most iconic destinations, combining an unmatched cultural heritage and striking sceneries with one of Europe’s top performing and most diversified economy. Located at the center of the Mediterranean Sea and with 40 major ports and 42 airports, Italy is a strategic gateway for trade between Europe, North Africa, and the Middle East.

The export of goods and services continues to provide a decisive and positive contribution to the fate of the Italian economy: in the first half of 2018, in fact, it contributed to the formation of GDP by over 31%. And the forecasts are for a further increase in 2019 up to 32%.

Italy is the 2nd largest manufacturer in Europe; 5th top manufacturer in the world; 9th largest exporter worldwide, with almost € 500 billion of export annually (goods and services). Also, Italy is the first European producer of pharmaceutical goods. 

Aerospace

The sector occupies a leading position in the international context, 4th in Europe and 7th in the World.

Alongside prime contractors such as Leonardo, Fincantieri, GE Avio, Iveco, and Piaggio Aerospace, the national supply chain is made up of 80% by Small and Medium Enterprises (SMEs) concentrated mainly in five significant industrial Districts (Piedmont, Lombardy, Lazio, Campania and Puglia).

See more on Point of View – Aerospace.

Competitive Advantage

  • Over 50,000 employees (200,000 estimated for the entire supply chain)
    € 15.2 billion of turnover produced
    € 8.5 billion from exports
  • Italian exports in the world for aircraft, spacecraft and related devices exceeded € 5.4 billion
  • The sector is characterized by high labor productivity and capital intensity, long investment cycles and high levels of research and development spending, almost € 1.5 billion, which make this sector second in the Italian market in this field.

Source:  AIAD (2015 data)

Agrifood

The Italian Agrifood sector represents an excellence that stands out in terms of quality, food safety, technological innovation, sustainability, biodiversity and respect for tradition. Italy is, in fact, a Country characterized by great territorial and climatic differences that have been shaped in cultures, stories and traditions, exceptionally varied and unique. These characteristics have led to the formation of a large number of small companies, very often family-owned, which, faced with the impossibility of competing on foreign markets in terms of price reduction, have focused on enhancing the uniqueness of their products.

Competitive Advantage

  • Wide range of high-quality products and high safety standards
  • Products certified on the first position of international markets
  • Close links with the territory and with the Italian cultural heritage

Automotive

The national automotive supply chain, with over 2,300 companies, employs 160,204 direct employees and 93,288 indirect employees, for a total of 253,492 employees, that is 7% of those employed in manufacturing industry. Approximately 73% of Italian companies export part of their production. As about direct employees, Italy is the 5th country in the EU, after Germany, France, Poland and Romania. The turnover of production activities (direct and indirect) in the automotive sector is worth € 93 billion, that is 10.5% of the turnover of the manufacturing industry and 5.6% of GDP at current prices.

The presence of historical and renowned brands and car manufacturers make Italy a market of great interest.

See more on Point of View – Automotive.

Competitive Advantage

  • with a turnover of about € 52 billion in 2016 Italy represents the third main producer of chemicals in Europe. Almost 3 thousand companies are active in the sector employing about 108 thousand people. Being a country with a strong industrial basis, Italy represents a large market for chemicals accounting for about € 59 billion.
  • Italy is the leading producer of pharmaceuticals in the European Union. With € 31.2 billion the value of our production exceeds that of Germany and the other major EU countries
  • From 2007 to 2017 pharma export in Italy has grown (+107%) more than all big Eu countries and more than big European countries’ average

Chemical Pharma

Italy is historically one of the largest producers of active ingredients in the world (and accounts for 11% of total production). The Italian pharmaceutical raw materials industry is mainly concentrated on the production of active ingredients, which represent about 85% of total turnover.

A significant portion of the production of the sector is destined for export and in particular one of the destination countries that absorbs a greater share of exports is North America, reflecting the fact that the Italian active ingredients industry has consolidated over time a position of qualified supplier for the most demanding markets in terms of product quality, thanks to its strengths that guarantee its reliability.

Competitive Advantage

  • with a turnover of about € 52 billion in 2016 Italy represents the third main producer of chemicals in Europe. Almost 3 thousand companies are active in the sector employing about 108 thousand people. Being a country with a strong industrial basis, Italy represents a large market for chemicals accounting for about € 59 billion.
  • Italy is the leading producer of pharmaceuticals in the European Union. With € 31.2 billion the value of our production exceeds that of Germany and the other major EU countries
  • From 2007 to 2017 pharma export in Italy has grown (+107%) more than all big Eu countries and more than big European countries’ average

Consumer Goods

Italian consumer goods are known all over the world: eyewear, fashion, jewelry, furniture and design are among the most requested in the world thanks to the high quality and innovative abilities of the Italian business sector.

Competitive Advantage

  • the electrical engineering sector recorded + 2.7% in 2017.
  • the electronics sector recorded a 7.8% increase in turnover in 2017.
  • export improved by 5,2% on average in 2017 thanks to the growing foreign demand.

Green Economy

Green Tech is the application of one or more of environmental science, green chemistry, environmental monitoring and electronic devices to monitor, model and conserve the natural environment and resources, and to curb the negative impacts of human involvement.

The term is also used to describe sustainable energy generation technologies such as photovoltaics, wind turbines, bioreactors, etc. Sustainable development is the core of environmental technologies.

Competitive Advantage

  • Bionergy installations increased by 3.3% in 2016
  • Italy is one of the most eco-efficient producers in Europe, producing 101 tons of CO2 for every million euros produced vs. 143 tons for Germany and 113 tons for the UK
  • 2nd producer of solar energy in Europe
  • 4th producer of hydroelectric energy in Europe

ICT

A growth that has not been recorded since 2005, the Italian digital market closed 2017 with a growth of 2.3% compared to 2016.

The total market value exceeded 68,700 million euros and the forecasts for the next three years 2018-2020 are based on optimism, with an average annual growth rate of 2.7% due to progressive increases from 2.3 % in 2018, 2.8% in 2019 and 3.1% in 2020.

It is the effect of a profound change in demand in all the main sectors, from Finance to Industry, to Distribution to Utilities.A question more attentive to the potential of the platforms that animate digital transformation

This is why the segments associated with the main Digital Enablers are growing in double digits, and will drive and drive the entire market, starting with software and services.

See more on Point of View – ICT

Competitive Advantage

  • 2th in the World for competitiveness in the Electronic components sectors (Source:  The Ranking of competitiveness of the Trade Performance Index 2016)
  • Italy has some of the world’s best engineering universities. Indeed, engineering is the 2nd highest course for enrolment in the country – 225,619 currently studying an engineering discipline  (Source: Ministry of Education)

Infrastructure

Located at the center of the Mediterranean Sea and with 40 major ports and 42 airports, Italy is a strategic gateway for trade between Europe, North Africa, and the Middle East.

Strategic Plan of the Italian Ministry of Infrastructures and Transport has developed 4 strategies to improve connectivity by:

  • prioritizing the most useful works
  • betting on intermodality to encourage the modal shift
  • improving the technological dimension of infrastructures and investing in a solid maintenance program
  • planning and financing a relevant investment plan in the urban areas

The New Public Procurement Legislation and Concession Contracts Code has transposed the public procurement and concessions European Directives. It regulates the planning, programming and designing activities, key stages for the tender station, the procedures for the award of contracts, identifying common basic principles for all types of contract to be followed,  such as transparency, cost efficiency, effectiveness, correctness, timing, and free competition.

A more efficient National Port System: the 58 main Italian Ports have now been organized into 15 new Port System Authorities, coordinated by the National Coordination Conference established at the Ministry of Infrastructures and Transport.

Competitive Advantage

  • Four out of nine European Core Network Corridors (TEN-T)  run across Italy
  • Capillary railway network, most of which (approximately 60%)  is part of strategic European corridors (TEN-T CNC)
  • 14 maritime ports are listed within priority nodes at European level (Core Network); no infrastructural capacity constraints to limit maritime traffic flows (in particular for transshipment container traffic)
  • 10 airports are listed within priority hubs at European level  (Core Network).

Life Science

In the last 25 years, the life science sector has been a leader (with a market share of around 15%), thanks to the recognized quality of the product and the technologies used that has allowed it to establish itself on extremely strict and controlled markets such as the American, European and Japanese.

 

See more on Point of View – Life Science

Competitive Advantage

  • 1st Country by number of Advanced Therapy products authorized by the EU (3 out of 5)
  • Worldwide medtech sales are forecast to grow at an annual compound growth rate of 5.1 percent, reaching US$521.9 billion by 2022.

Machinery

Thanks to the progress made in the fields of design, construction and techniques, the Italian industry has conquered a world-leading position: exports represent a characteristic vocation of the various sectors.

The Italian initiatives also aim to broaden the geographical range of interventions, in a logic of economics of scale and dissemination of acquired experiences, with the inclusion of targeted initiatives also in “minor” markets not yet touched by promotional activities. At the same time, the sectors to be promoted are extended to present not only instrumental mechanics but Italian technology as a whole.

Competitive Advantage

  • with 5,150 companies, 191,500 employees and a turnover that, in 2017, amounted to 46.6 billion euro (+ 9.7% compared to 2016), the Italian industry exports 68% of production across the border.
  • the made in Italy of the sector is appreciated by users all over the world for the very high technological standards and the high personalization of the offer.

Real Estate

Visit the website: https://www.investinitalyrealestate.com/it

The constant improvement of macroeconomic indicators and the huge amount of liquidity available to the financial system are the main factors that lie at the base of the Italian real estate market’s current growth.

We offer you a portal dedicated to the presentation of offers in public investments, public investee companies or public-private companies, companies to Italian and foreign operators: https://www.investinitalyrealestate.com/it/

The portal offers diversified investment opportunities, divided into two macro-categories: on the one hand properties ready for an already defined enhancement, such as historic buildings suitable to be transformed into prestigious offices or “charming” hotels; on the other, real estate development operations – for example, properties to be transformed or areas to be built – whose valorisation can be directed towards the most adequate and sustainable solutions, by comparison with the market of potential users and investors.

Competitive Advantage

  • the Italian Real Estate market continues its relaunch, thanks to a return of direct investments, a pillar of family allocation
  • foreign investors continue to have a central role, with an incidence on transactions of 70%, equal to 7.6 billion Euros in investments in 2017.
  • in 2017 investments have increased by 20% compared to the previous year, while the share of Italian investments over the European total – according to the estimates – amounts to 3.8% (against the 3.6% in 2016).

Business Environment

With a GDP of over € 1.7 trillion and a population of over 60 million, Italy is the world’s 9th largest economy. Italy is one of only five countries in the world whose manufactured products have an export trade surplus (over € 47 mln).

Italy’s control over public finance has been among the most solid in the Eurozone in the last 7 years. Since 2012 the deficit has been consistently below the 3% ceiling, and Italy had the highest primary surplus on average (1.1%) during the 2009-2016 period.

Italy is also one of the world’s most iconic destinations, combining an unmatched cultural heritage and striking sceneries with one of Europe’s top performing and most diversified economy. Located at the center of the Mediterranean Sea and with 40 major ports and 42 airports, Italy is a strategic gateway for trade between Europe, North Africa, and the Middle East. 

The export of goods and services continues to provide a decisive and positive contribution to the fate of the Italian economy: in the first half of 2018, in fact, it contributed to the formation of GDP by over 31%. And the forecasts are for a further increase in 2019 up to 32%.

Italy is the 2nd largest manufacturer in Europe; 5th top manufacturer in the world; 9th largest exporter worldwide, with almost € 500 billion of export annually (goods and services). Also, Italy is the first European producer of pharmaceutical goods. 

Competitor comparison

 Sources: 1. ITA elaborations on ISTAT data, 2. Fondazione Edison on data from the WTO and UNCTAD/WTO Nation Brands Ranking; 4. Farminustria; 5. Blumine on data UN-Comtrade

A hourly labor cost below the Eurozone average. This is how Italy was placed at the end of 2017 according to the latest data released by Eurostat. In Italy, the hourly cost for the entire economy, excluding agriculture and public administration, has slightly exceeded 28 euros at the end of last year, compared to 30.3 euros in the Eurozone average and much below levels of the main partners such as Germany (34.1 euros) or France (36 euros).

Confronting Italy with its main competitors one can see that Italy enjoys a more favourable position.

Investment Guide

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Manufacturing Guide

Interested in the manufacturing sector in Italy? Download the guide below, and feel free to contact us for more information!