Date:
8 February 2017
Statement by Federico Ghidini, President of the Young Entrepreneurs of Confindustria Lombardia
Milan, 8 February 2017 – The fourth quarter of 2016 concludes a year of slow but steady growth for the Lombard industrial system. In particular, data from the Unioncamere and Confindustria Lombardia analysis of the manufacturing industry show a 0.3% cyclical increase in production compared to the previous quarter, a 0.6% growth in turnover, a sudden drop in foreign orders (-1.1%), an increase in domestic orders (+1.5%), and a negative employment balance (-0.2%). Overall, 2016 closed with an average production growth of 1.3% compared to the previous year.
Against this backdrop, a new element of significant uncertainty has emerged compared to the recent past: the decline in foreign orders. It is clear that there are elements of instability in global trade that are undermining world trade growth, from the unknowns surrounding the trade policy to be adopted by Trump, to the start of Brexit negotiations, and the spread of neo-protectionism.
Fortunately for Lombardy, the decline in foreign orders in the final quarter of 2016 was offset by a strong recovery in the domestic market. In the face of global uncertainty, it is hoped that this recovery will become structural and consistent, in order to provide businesses with the necessary impetus to then tackle foreign markets. As also highlighted by the Q4 2016 data, the foreign component remains a decisive factor in the total turnover (40.3%) of our companies—a percentage that allowed businesses to endure throughout the many years of crisis, demonstrating just how fundamental all activities related to the internationalisation of our companies are.
Despite the negative balance, the employment data reveal a renewed dynamism in the regional labour market. We are witnessing an increase in both entries into and exits from the labour market. For Confindustria Lombardia, this is an interesting phenomenon, as it is a symptom of a labour market that is transforming. This dynamism should also be associated with the further decline in the use of the Wage Guarantee Fund (CIG), which currently stands at 11.1 (compared to 28.5 in 2013).
As young Lombard entrepreneurs, we therefore wish to look to the future of our businesses: the Lombard system is facing several challenges, all of which share the common goal of developing competitiveness.
To be competitive, a region must be attractive to international companies and foreign direct investment, as well as being capable of presenting itself as a system in foreign markets to promote its excellence. Internationalisation today means going beyond mere export activity: it requires attracting investment, developing joint ventures, and creating public-private partnerships. Lombardy has many cards to play, thanks to its characteristics as an international hub that is naturally attractive for investments, skills, people, businesses, startups, and European agencies.
Another decisive factor for the success of our businesses is people and their skills. Human capital of excellence is, in fact, the foundation of a region's ability to be competitive.
With this in mind, as Confindustria Lombardia, we are committed to a project in collaboration with the regional school system to promote awareness of the educational paths that best meet the needs of the Lombard production sector, in order to foster a connection between the training system and the business world. This is because skills must be created with the future labour market in mind.
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