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1
THE AUTOMOTIVE AND CONSTRUCTION EQUIPMENT INDUSTRY
ITALY
Fact Pack
Swedish Trade Council in Italy
2006
2
Overview Italian Manufacturing Industry
Italian Automotive Industry
Italian Construction Equipment Industry
Recommendations
References
CONTENT
3
THE ITALIAN MANUFACTURING INDUSTRY PRODUCES FOR A VALUE OF SEK 7 600 BILLION
The total turnover of the Italian manufacturing industry is SEK 7 615 billion
the Swedish manufacturing industry’s turnover is SEK 1 357 billion
The most important sectors within the manufacturing industry are construction of machinery and food related production
There are approximately 540 000 companies active within the manufacturing industry in Italy
4.9 million employees The Italian industrial structure is dominated by
small companies. 83 % of the manufacturing companies employs less than 9 employees.
The average labour cost for an industry worker in Italy is SEK 198 per hour
0 200 400 600 800
Metalproducts
Chemicals
Automotive
The foodindustry
Machineryconstruction
5 largest manufacturing industries in Italy
Billion SEK
Machinery construction and food production stand for 20% of the total Italian manufacturing industry
Source: ISTAT, Eurostat
4
Overview Italian Manufacturing Industry
Italian Automotive Industry
Passenger Cars
Commercial Vehicles
Suppliers
Italian Construction Equipment Industry
Recommendations
References
CONTENT
5
THE ITALIAN PRODUCTION OF CARS AND COMMERCIAL VEHICLES TOTALS SEK 407 BILLION- the latest statistics indicates an upswing in value of production
0
100
200
300
400
500
2001 2002 2003
Domestic Export
Vehicles and engines
SEK 132 billion
Trailers and containersSEK 14 billion
Components and accessories
SEK 260 billion
billion SEK Production of cars and commercial vehicles industry in Italy
Growth mainly due to increasing exports of Italian automotive suppliers
Source: ISTAT
6
MORE THAN 1 MILLION VEHICLES ARE PRODUCED IN ITALY- Italy stands for about 5 % of the worldwide vehicle production
VEHICLE MANUFACTURERSVEHICLE MANUFACTURERS
3 manufacturers Iveco
(part of Fiat Group): 183 000
Sevel (Joint Venture between Fiat Auto and PSA): 81 000
Piaggio: 6 000
LIGHT TRUCKS(270 000 vehicles)LIGHT TRUCKS
(270 000 vehicles) 3 manufacturers
Irisbus (part of Iveco): 3 200
Carozzeria Barbi
(Volvo): 400 Breda Menarini Bus: 400
BUSSES(4 000 vehicles)
BUSSES(4 000 vehicles)
HEAVY TRUCKS(40 000 vehicles)HEAVY TRUCKS(40 000 vehicles)
1 manufacturer Iveco (part of Fiat
Group) Trailer manufacturers
Rolfo Merker (Margaritelli) Acerbi – Viberti Officine Cardi Menci & C. Pezzaioli Carozzeria
COMMERCIAL VEHICLES (314 000 vehicles)COMMERCIAL VEHICLES (314 000 vehicles)
PASSENGER CARS(723 000 vehicles)
PASSENGER CARS(723 000 vehicles)
4 manufacturers Fiat Group (Fiat, Lancia,
Alfa Romeo, Maserati and Ferarri): 700 000
Volkswagen Group (Lamborghini): 1 500
Pininfarina (Mitsubishi, Alfa Romeo and Ford): 14 000
Bertone (Opel): 7 500
Source: Automobile Produktion
7
Overview Italian Manufacturing Industry
Italian Automotive Industry
Passenger Cars
Commercial Vehicles
Suppliers
Italian Construction Equipment Industry
Recommendations
References
CONTENT
8
THE ITALIAN PRODUCTION OF PASSENGER CARS HAS PERFORMED POORLY BUT IS SHOWING SIGNS OF RECOVERY
The Italian quote of the worldwide vehicle production has decreased from 8,2 % in 1999 to 4,7 % in 2004.
In terms of volume this means a decrease of about 40 %. Compared with 2004 the production in 2005 decreased with about 13 %.
The problems can in part be explained by Investment in lower-cost production abroad.
Another reason for the decrease is the sluggish development and problems of Fiat Auto which have four major explanations:
Product range: Limited and underdeveloped. Insufficient investments in R&D and product development
International presence: Significant presence on to few foreign markets. Inability to take advantage of motorization in developing countries.
Sales and After Sales network: Underdeveloped in terms of service quality and customer satisfaction.
C-segment: Wrong market positioning of the Fiat Stilo has jeopardized the presence in a segment with very high volumes.
Fiat is now however showing signs of a strong recovery and future prospects looks brighter.
0
250 000
500 000
750 000
1 000 000
1 250 000
1 500 000
2001 2002 2003 2004 2005
Passenger Car Production in Italy Development the last 5 years
Vehicles
Source: STC, interviews, ANFIA, Il Sole 24 Ore
9Source: Kompass, interviews
Manufacturer Employees
Business Purchase decisions
Fiat Auto 180.000 Passenger carsTransporters
HQ, Turin, Italy (For all Italian production. Also has local HQs in Brazil and Turkey with authority to make purchase decisions)
Pininfarina 2.090 Passenger cars The respective OEM for which Pininfarina produces mainly makes purchase decision at HQ. They also have representatives at the plant for day to day decisions.
Bertone 1.796 Passenger cars GM-Opel, HQ Europe, Rüsselsheim, Germany.
Volkswagen Group (Lamborghini)
350 Passenger cars HQ of Lamborghini, S. Agata Bolognese (Bologna), Italy
FIAT’S PURCHASE DECISIONS FOR THE ITALIAN PRODUCTION IS CENTRALISED TO HEADQUARTER IN TURIN
Pass
enge
r Car
s
10
THERE ARE A TOTAL OF 13 CAR MANUFACTURING PLANTS IN ITALY- Most of them are operated by Fiat Auto
Source: Automobile Produktion, interviews
Manufacturer Plants Models and focus Production volume
Fiat GroupFiatLanciaAlfa RomeoMaseratiFerrari
Cassino Chivasso Maranello (Ferrari) Melfi Mirafiori Modena (Maserati) Pomigliano Termini Imerese
Fiat: (Croma, Stilo, Punto, Idea,
Multipla)Lancia:
(Y, Lybra, Musa, Thesis) Alfa Romeo:
(166, 147, 148, 156, 159, 169, Brera, C-Cross
Over,GT Coupe) Ferrari:
(355/456GT/550/FXX) Maserati:
(Quattroporte,Coupè Cambiocorsa; ITCA body-in-
whites)
700 000
Volkswagen GroupLamborghini
Sant’ Agata Bolognese
Lamborghini :(Gallardo,
Murcielago)
1 500
PininfarinaNo own brands
Bairo Canavese Crugliasco San Giorgio
Canavese
Mitsubishi: (Colt, Pinin Pajero)
Alfa Romeo: (8C Competizione, Spider)
Ford :(Focus, StreetKa)
14 000
BertoneNo own brands
Crugliasco Opel :(Astra)
7 500
Fiat GroupCassino
PininfarinaBairo Canavese
PininfarinaSan Giorgio Canavese
Fiat GroupChivasso
PininfarinaGrugliasco
BertoneGrugliasco
Fiat Group(Maserati)Modena
Fiat GroupMelfi
Fiat GroupMirafiori
Fiat Group(Ferrari)Maranello
Fiat GroupPomigliano
Wolkswagen Group (Lamborghini)Sant’ Agata Bolognese
Fiat GroupTermini Imerese
11Source: STC, Interviews
After many years of losing market shares and reporting huge losses, Fiat’s car business is showing signs of an impressing turn around. After the divorce with GM in 2005, and after showing losses of EUR 2 bln in 2004, Fiat Auto is now reporting a 70 % fall in losses compared with a year earlier.
Fragmentation of market
Fragmentation of market
GlobalizationGlobalization
Fiat is picking up speed
Fiat is picking up speed
Increased competition and continuous price reductions is moving Fiat’s production abroad and switching its loyalty with its Italian suppliers towards a higher dependence on suppliers from countries with lower costs.
Fiat’s new chief executive Sergio Marchionne has ended the company’s traditional strategy of pinning its hope to the next new car. Fiat will now try to compete in more market segments by creating a larger range of models.
This fragmentation of market leads to the need of using common platforms for various models in order to create flexibility. Suppliers will thus have to be able to deliver whole modules to car factories.
FIAT IS SHOWING SIGNS OF AN IMPRESSING TURN AROUND AFTER YEARS OF POOR PERFORMANCE
Trends within the Italian passenger car industry
12
Overview Italian Manufacturing Industry
Italian Automotive Industry
Passenger Cars
Commercial Vehicles
Suppliers
Italian Construction Equipment Industry
Recommendations
References
CONTENT
13
ITALIAN PRODUCTION OF COMMERCIAL VEHICLES WHICH IS HEAVILY DOMINATED BY LIGHT TRUCKS IS INCREASING
0
50 000
100 000
150 000
200 000
250 000
300 000
350 000
2001 2002 2003 2004 2005
Light Trucks Heavy Trucks Buses
Commercial Vehicle Production in Italy Development the last 5 years
Vehicles After an exceptional, and statistically distorting,
beginning of the 21st century because of fiscal stimulations the Italian production of commercial vehicles has since the slight downturn in 2003 been steadily increasing for more natural reasons
Overall the increase in production from 2003 reached 6 % (CAGR 2 %).
The increase is driven by strong performance of light trucks whose production boomed in 2004 growing with 4,6 %.
The increase is in part explained by the strong performance of Fiat and Iveco depending on successful releases of new models (especially by penetrating more segments of the LCV market) and a very aggressive marketing policy.
The increase has also been driven by domestic demand because of Italian companies need to renew obsolete car fleets.
Source: STC, Interviews, ANFIA, UNRAE
14Source: Anfia,Kompass,interviews
Manufacturer Employees Business Purchasing decisions
IVECO
(Fiat Group)31.511 Light Commercial
Vehicles, Heavy Trucks, Busses
HQ, Turin, Italy
Sevel
(Joint venture between Fiat Auto and PSA )
5.200 Light Commercial Vehicles
Plant is managed by Fiat , in agreement with PSA dedicated people. Therefore purchase decisions are mainly taken at Fiat Auto HQ in Turin.
Piaggio 3.500 Light Commercial Vehicles
HQ, Pontedera, Italy
Irisbus
(Fiat Group)1.393 Busses HQ, Turin, Italy (Fiat Group)
HQ, Lyon, France (Irisbus)
BredaMenarini Bus 310 Busses HQ, Bologna, Italy
Carrozzeria Barbi(produces trucks for Volvo)
82 Busses HQ, Mirandola, Italy HQ of Volvo, Torslanda, Sweden
THE ITALIAN PRODUCERS FIAT AND IVECO BOTH MAKES PURCHASE DECISIONS AT HEADQUARTERS IN TURIN
Com
mer
cial
veh
icle
s
15
THE ITALIAN COMMERCIAL VEHICLE INDUSTRY IS DOMINATED BY FIAT AND FIAT CONTROLLED IVECO
Source: Automobile Produktion, interviews
Manufacturer Plants Models and focus Production volume
Sevel(Joint venture between Fiat Auto and PSA)
Val di Sangro Citroen: (Jumper)
Fiat: (Ducato) Peugeot:
(Boxer)
183 000
IVECO Suzzara Brescia Bolzano
Iveco: (Daily,Eurocargo, Stralis)
81 000
Piaggio(Produces own brand and for Daihatsu)
Pontedera Piaggio:(Porter)
Daihatsu: (Hijet)
6 000
Irisbus(Controlled by IVECO and part of Fiat Group)
Valle Ufita Irisbus:(Cityclass, Citelis,
Midway, Midys, Arway, Evadys)
3 200
Carrozzeria Barbi(produces for Volvo)
San Giacomo Roncole
Volvo: (Genesis)
400
Breda Menarini Bus
San Donato Breda Menarini Bus:(M231C, M231M,
M240N, M240L, Avancity, M340, M240LI,
M200E, M231CNG, M240CNG, M240EI)
400
IrisbusValle Ufita
IvecoSuzzara
Carrozzeria BarbiSan Giacomo Roncole
Breda Menarini BusSan Donato
Sevel(Fiat Auto and PSA)Val di Sangro
IvecoBrescia
PiaggioPontedera
16Source: STC, Interviews
The Italian producers of commercial vehicles are performing strongly The production and sales of Italian commercial vehicles has been functioning as a role model for the production of passenger cars.
The production has been rising thanks to intelligent product releases and the positive trend shows no signs of bringing to a halt.
Customized services
Customized services
Consolidation of market
Consolidation of market
Increasing production
volumes
Increasing production
volumes
In order to achieve economies of scale and to share fixed costs the industry has been consolidating The most significant example is that Irisbus, formerly a joint venture between Iveco and Renault, is now a wholly
owned subsidiary of Iveco (Fiat Group).
Today not only the large companies are looking for flexible, individualized solutions; even medium sized businesses are increasingly looking for customized financing deals, particularly when it comes to leasing solutions.
THE POSITIVE TREND WITH A RISING PRODUCTION OF COMMERCIAL VEHICLES SHOWS NO SIGNS OF STAGNATING
Trends within the Italian commercial vehicle industry
17
Overview Italian Manufacturing Industry
Italian Automotive Industry
Passenger Cars
Commercial Vehicles
Suppliers
Italian Construction Equipment Industry
Recommendations
References
CONTENT
18
THERE ARE ABOUT 1 700 AUTOMOTIVE SUPPLIERS IN ITALY- But the medium size of companies is rather small
Totally there are about 1 700 suppliers to the automotive industry active on the Italian market.
The suppliers are located in the northern parts of Italy, close to the HQ of Fiat Auto and the most important car plants:
Close to a third of all suppliers are based in the region of Piedmont where Turin and the HQ of Fiat is located.
The Italian suppliers are generally small or medium sized companies:
The average number of employees for an Italian supplier is about 70
The largest Italian suppliers to the automotive industry are Pirelli, Sogefi, Brembo and Magnetti Marelli.
Traditionally Italian suppliers are especially strong in engineering and design. Low High
Geographical concentration of automotive suppliersItalian automotive suppliers
Source: STC, interviews, ANFIA
19
EVEN DUE TO A CONSOLIDATION OF MARKET THE NUMBER OF ITALIAN AUTOMOTIVE SUPPLIERS IS STILL HIGH
Source: Anfia,interviews
Cables, bus systems, embedded systems
Magneti Marelli Sistemi Elettronici
Delphi Italia Automotive Systems
Valeo
Power train, exhaust systems, engines
Magneti Marelli Powertrain
Delphi Italia Automotive Systems
Dayco Europe Fiamm Automotive
Batteries
Cockpit, seats, dash-board, air conditioning
Lear Corporation Delphi Italia
Automotive Systems Valeo Intier T.R.W Automotive
Italia S.p.A Johnson Controls Italia
T1 SUPPLIERS(examples of the largest ones)
T1 SUPPLIERS(examples of the largest ones)
Electrical systemsElectrical systems Interior equipmentInterior equipment PropulsionPropulsion BodyBody Running gearRunning gear
Body, roof, glass, doors, lighting etc.
Automotive Lighting Rear Lamps Italia (Magneti Marelli)
Lear Corporation Valeo
Suspension, brakes, axles, steering, tires
Magneti Marelli Sistemi Sospensioni
Sogefi Pirelli Tyre Carraro Brembo Delphi Italia Automotive Systems T.R.W Automotive Italia Bosch -Tecnologie Diesel e
Sistemi Frenanti
20Source: Kompass, interviews
Manufacturer Employees Business Italian headquarter
Pirelli Tyre 21.500 Tyres Milan
Magneti Marelli Holding S.p.A
20.000 Powertrain, suspension,lighting, electrical systems
Turin
Sogefi 6,171 Engine and cabin filtration. Suspensions components.
Mantova
Lear Corporation 3.000 Seat systems, electronic products and air-conditioning,
Grugliasco
T.R.W Automotive Italia
2.260 Brakes, suspension Moncalieri (Turin)
Brembo 2.000 Brakes Curno
Bosch- Tecnologie Diesel e Sistemi Frenanti Italia
1.942 Diesel engine injection pumps. Brakes components.
Modungo (Bari)
TIER ONE SUPPLIERS: DETAILED INFORMATION (1/2)
T1 S
uppl
iers
21Source: Kompass, interviews
Manufacturer Employees Business Italian headquarter
Dayco Europe 1.164 Power transmission, air-intake and engine cooling
Airasca (Turin)
Valeo 1.130 Lighting, electrical systems, motors, engine cooling etc
Santena (Turin)
Delphi Italia Automotive Systems
885 Chassi, steering systems, powertrain, safety systems
Collegno (Turin)
Johnson Controls Italia 200 Electronic components for air conditioners.
Milan
TIER ONE SUPPLIERS: DETAILED INFORMATION (2/2)
T1 S
uppl
iers
22
TurinDelphi Italia Automotive Systems
ValeoLear Corporation Italia
T.R.W Automotive ItaliaDayco Europe
Magneti Marelli Sistemi Sospensioni
MilanMagneti Marelli Sistemi Elettronici
Pirelli TyreJohnson Controls Italia
CurnoBrembo
TolmezzoAutomotive Lighting Rear Lamps Italia (Magneti Marelli)
Montecchio MaggioreFiamm Automotive Batteries
MantovaSogefi
BolognaMagneti Marelli Powertrain
BariBosch - Tecnologie Diesel e Sistemi Frenanti
FOR STRATEGIC REASONS THE T1 SUPPLIERS ARE MOSTLY FOUND NEAR THE HQs AND PLANTS OF THE OEMs
Source: STC
23
MANY T2 SUPPLIERS ARE SMALL, LOW VALUE ADDING FIRMS THAT FACE HARD COMPETITION FROM LOW-COST COUNTRIES
Cables, bus systems, embedded systems
ITT Industries Friction Products
ASK Industries
Power train, exhaust systems, engines
Fonderie Mario Mazzucconi
SKF Industrie Metelli Ufi Filters
Cockpit, seats, dash-board, air conditioning
Gammastamp Conceria Pasubio
T2 SUPPLIERS (examples of the largest ones)
T2 SUPPLIERS (examples of the largest ones)
Electrical systemsElectrical systems Interior equipmentInterior equipment PropulsionPropulsion BodyBody Running gearRunning gear
Body, roof, glass, doors, lighting etc.
Automotive Lightning Italia Rear Lamps (Magneti Marelli)
Olsa Federal Mogul
Operations Italy
Suspension, brakes, axles, steering, tires
Gruppo Sogefi Metelli Federal Mogul
Operations Italy Sila Holding
Industriale
Source: Anfia, Automobil Cluster
24
Manufacturer Employees Business Italian headquarter
Sogefi 6.171 Filters, suspension and precision springs
Mantova
ITT Industries Friction Products
1.000 Electronic components Barge
SKF Industrie 944 Bearings Villarperosa (Turin)
Automotive Lighting Italia Rear Lamps
800 Lighting Tolmezzo
Gammastamp 730 Components for safety belts, doors etc
Bianzé
Metelli 420 Brake parts, engine parts, transmission
Cologno Monzese (Monza)
TIER TWO SUPPLIERS: DETAILED INFORMATION (1/2)T2
Sup
plie
rs
Source: Anfia, Automobil Cluster, Kompass
25
Manufacturer Employees Business Italian headquarter
Fonderie Mario Mazzucconi
388 Components for engines, transmission and brakes etc
Bergamo
ASK Industries 300 Car audio e antenna systems, amplifiers, cables etc
Reggio Emilia
Conceria Pasubio 250 Leather for carseats Arzignano, Padua
Ufi Filters 230 Filters Nogarole Rocca (Verona)
Federal Mogul Operations Italy
135 Components for lighting, friction and power cylinder systems
Turin
Olsa 51 Interior and exterior lighting components
Turin
TIER TWO SUPPLIERS: DETAILED INFORMATION (2/2)T2
Sup
plie
rs
Source: Anfia, Automobil Cluster
26Source: STC, interviews
Strategic cost reduction actions
Strategic cost reduction actions
Product portfolio specialization
Product portfolio specialization
Customer portfolio diversification
Customer portfolio diversification
ITALIAN SUPPLIERS HAVE DIVERSIFIED THEIR CUSTOMER BASE, AND SPECIALISED THEIR PRODUCT PORTFOLIOS
Trends within the Italian automotive supplier industry
Many Italian automotive suppliers have traditionally had Fiat Group as their single client. There is now a clear tendency for suppliers to diversify their customer portfolio with non-Italian customers.
Italian suppliers are now performing very well because of increasing exports and less dependence on Fiat Group.
Delocalization of Italian automotive suppliers: Production facilities established in low-cost countries (mainly for labor intensive operations)
Increase of sourcing volumes from low-cost countries Production capacity and workforce down-sizing
Italian automotive suppliers are slowly becoming more specialized (i.e. creating product portfolios with focus on core products, technologies and competences).
With these more specialized product portfolios suppliers are at the same entering similar non-automotive industrial sectors.
27
Overview Italian Manufacturing Industry
Italian Automotive Industry
Italian Construction Equipment Industry
Manufacturers
Suppliers
Recommendations
References
CONTENT
28
THE ITALIAN PRODUCTION OF CONSTRUCTION EQUIPMENT TOTALS ABOUT SEK 43 BILLION- the industry grew with more than 8% in 2005
0
10
20
30
40
2002 2003 2004 2005
Domestic Export
Earthmoving Equipment
SEK 29 billion
Tower Cranes SEK 3 billion
Road Equipment SEK 3 billionbillion SEK Production machine and construction vehicles in Italy
Growth mainly a result of increases in exported volumes
Source: Committee for European Construction Equipment
Concrete Equipment
SEK 6 billion
Crushing, Washing, Sizing Equipment SEK 2 billion
29
TOTALLY THERE ARE ABOUT 300 COMPANIES ACTIVE WITHIN THE CONSTRUCTION EQUIPMENT INDUSTRY IN ITALY- But many companies are small and only active locally
Source: UCoMESA , Anima
CONSTRUCTION EQUIPMENT(examples of the largest companies in the industry)
CONSTRUCTION EQUIPMENT(examples of the largest companies in the industry)
ROADROAD
Bitelli (Catepillar Italia) Antec Marini CNH (Fiat Group) Fiori SpA
Graders, asphalt pavers, asphalt mixers
MININGMINING
Solimec Casagrande
Wheel loaders, drills, haulers
Komatsu Italia SpA CNH (Fiat Group) Astra Veicoli Industriali
(Owned by IVECO and part of Fiat Group)
Merlo SCAI SpA (Hitachi) Fiori SpA Macmoter SpA Euromach Srl
EARTH MOVINGEARTH MOVING
Excavators, wheel loaders, backhoe loaders, Skid steer loaders, haulers
LIFTINGLIFTING
Marchetti Autogru Raimondi Merlo Terexlift Amoc Veba Srl
Mobile cranes, forklifts
30Source: Kompass, UCoMESA, Anima,
Manufacturer Business Turnover (EUR m)
Employees Plant Purchasing decisions
CNH (Fiat Group) Escavators, skid steer loaders, backhoe loaders
€ 9 796 m 2.704 Modena HQ, Modena, Italy
Astra Veicoli Industriali
Dump-trucks, tractors € 211 m 480 Piacenza HQ, Piacenza, Italy
Merlo Telescopic handlers € 195 m 500 Cervasca HQ, Cervasca, Italy
Marini Asphalt pavers, paver finishers, cold milling planers etc
€ 85 m 370 Alfonsine HQ, Alfonsine, Italy
Bitelli (Caterpillar Italia)
Asphalt pavers and cold planers € 75 m 265 Minerbio HQ, Minerbio, Italy
Terexlift Lifting platforms € 50 m 130 Umbertide HQ, Umbertide, Italy
Casagrande Hydraulic Crawler Drills, piling equipment, crawler cranes
€ 39 m 250 Fontanafredda HQ, Fontanafredda, Italy
Raimondi Cranes € 32 m 42 Legnano HQ, Legnano, Italy
Amoc Veba Srl Truck cranes € 13 m 100 Poviglio HQ, Reggio Emilia, Italy
CONSTRUCTION EQIPMENT OEMs: DETAILED INFORMATION (1/2)
31Source: Kompass, UCoMESA, Anima,
Manufacturer Business Turnover (EUR m)
Employees Plant Purchasing decisions
Marchetti Autogru Cranes € 12 m 70 Piacenza HQ, Piacenza, Italy
Fiori Excavators, loaders, mixers, dumpers, backhoe loaders
€ 16.2 m 49 Finale Emilia (Modena)
HQ, Finale Emilia (Modena), Italy.
Euromach Excavators € 3.5 m 24 Montichiari (Brescia)
HQ, Brescia, Italy
Macmoter Excavators, skid track loaders, dozers, prime movers
€ 3 m 53 Modigliana (Forlì Cesena)
HQ, Modigliana (Forlì), Italy
Komatsu Wheel loaders, escavators, skid steer loaders
n/a n/a Vicenza HQ, Vicenza, Italy
Antec Steer skid loaders, cold planers n/a n/a Peschiera Borromeo
HQ, Peschiera Borromeo, (Milan), Italy
Soilmec Rotary rigs, drilling equipment n/a n/a Cesena HQ, Cesena, Italy
CONSTRUCTION EQIPMENT OEMs: DETAILED INFORMATION (2/2)
32
THE ITALIAN CONSTRUCTION EQUIPMENT INDUSTRY IS CONCENTRATED TO THE REGION EMILIA ROMAGNA
FontanafreddaCasagrande
VicenzaKomatsuBrescia
EuromachMilanAntec
Raimondi
CervascaMerlo
PiacenzaMarchetti Autogru
Astra Veicoli IndustrialiPoviglio
Amoc Veba
ModenaCNHFiori
ModiglianaMacmoter
AlfonsineMariniMinerbioBitelli
CesenaSoilmec
UmbertideTerexlift
33
Overview Italian Manufacturing Industry
Italian Automotive Industry
Italian Construction Equipment Industry
Manufacturers
Suppliers
Recommendations
References
CONTENT
34
MOST OF THE ITALIAN SUPPLIERS TO THE CONSTRUCTION EQUIPMENT OEMs ARE SMALL AND MEDIUM SIZED COMPANIES
Source:STC, interviews
Cables, sensors, semi conductors, control units
Undercarriage and bodyPower train, engines, exhaust systems, axles
SUPPLIERS(examples of the largest ones)
SUPPLIERS(examples of the largest ones)
Electrical systemsElectrical systems Propulsion and running gear
Propulsion and running gear Steel constructionSteel construction HydraulicsHydraulics
All kind of hydraulic cylinders
AccessoriesAccessories
All kind of accessories
Siemens Vdo TradingRobert Bosch
Bosch Rexroth C.A.M.I HydrocontrolHomberger Safim SpA
Italscania SpA Perlini International
SKF Italia Cararro SpA Bosch Rexroth SAIM Europe Srl
Berco SpA Cobo Case del Sedile Isringhausen Webasto product Italy
35Source: STC, Kompass, interviews
Manufacturer Employees
Business Purchasing decisions
SKF Italia 3649 Propulsion and running gear HQ, Turin, Italy
Berco 3000 Accessories HQ, Ferrara, Italy
Carraro 913 Propulsion and running gear HQ, Padua, Italy
Robert Bosch 476 Electrical systems HQ, Milan, Italy
Isringhausen 400 Accessories HQ, Novara, Italy
C.O.B.O. 300 Accessories HQ, Brescia, Italy
Perlini International 300 Steel construction HQ, Verona, Italy
Hydrocontrol 175 Hydraulics HQ, Bologna, Italy
CONSTRUCTION EQUIPMENT SUPPLIERS: DETAILED INFORMATION (1/2)
Con
stru
ctio
n eq
uipm
ent s
uppl
iers
36
Manufacturer Employees
Business Purchasing decisions
Italscania 79 Steel construction HQ, Trento, Italy
Homberger 52 Hydraulics HQ, Genoa, Italy
SAFIM 52 Hydraulics HQ, Modena, Italy
CAMI 35 Hydraulics HQ, Padua, Italy
Siemens VDO Trading 30 Electrical systems HQ, Milan, Italy
Webasto product Italy 25 Acessories HQ, Milan, Italy
Case del Sedile 18 Acessories HQ, Modena, Italy
SAIM Europe n/a Propulsion and running gear HQ, Milan, Italy
Bosch Rexroth n/a Propulsion, running gear and Hydraulics
HQ, Milan, Italy
CONSTRUCTION EQUIPMENT SUPPLIERS: DETAILED INFORMATION (2/2)
Con
stru
ctio
n eq
uipm
ent s
uppl
iers
Source: STC, Kompass, interviews
37
THE SUPPLIERS TO THE CONSTRUCTION EQUIPMENT OEMs ARE CONCENTRATED AROUND MILAN IN THE REGION OF LOMBARDY
TrentoItalscania
BresciaCobo
PadovaC.A.M.I.Carraro
VeronaPerlini International
ModenaCasa del sedileSafim
FerraraBerco
MilanSiemens Vdo Trading
Robert BoschWebasto Product Italy
Bosch RexrothSaim
TurinSKF Itallia
GenuaHomberger
BolognaHydrocontrol
VareseIsringhausen
Source: STC, interviews
38Source: STC, interviews
In 2005 the Italian production of construction machinery increased with more than 7.5 %. In the coming years a further growth is foreseen, relying on a steady demand both from the Italian market (thanks to the realization of large construction projects) and from foreign markets.
Weight of exports as part of total sales increases
Weight of exports as part of total sales increases
Increasing competition from far east countriesIncreasing competition from far east countries
Continuous growth in produced volumes
Continuous growth in produced volumes
Italian companies have been losing market shares to Asian producers, who are pushing down general price levels. In order to meet the competition Italian companies are working on differentiating their product offering and increasing
the quality of the after sales service.
Italian production of construction equipment is heavily dependent on sales to foreign markets. Today close to 70 % of production is sold abroad and the weight of exports continues to grow since exports
increases more than domestic demand.
THE GROWTH OF THE ITALIAN PRODUCTION OF CONSTRUCTION EQUIPMENT IS EXPECTED TO CONTINUE- In large parts based on increasing foreign demand
Trends within the Italian Construction Equipment industry
39
Overview Italian Manufacturing Industry
Italian Automotive Industry
Italian Construction Equipment Industry
Recommendations
References
CONTENT
40
WHEN DOING BUSINESS IN ITALY LOCAL PRESENCE CAN MANY TIMES PROVE TO BE A GREAT ADVANTAGE
Be prepared that time of payment is among the longest in Europe. Italian customers will be resistant to accepting a time of payment under 60 days; this should be considered when negotiating with the Italian counterpart.
Local presence important
Local presence important
Fragmented value chains
Fragmented value chains
Late paymentsLate payments
Country specific recommendations for doing business in Italy
The value chain in Italy is often fragmented. Many actors are involved in the distribution network and the use of local agents can often be an effective way to reach the end customer.
Local presence is often a great advantage. Italian companies are used to working closely with their counterpart and local presence with an Italian speaking representative is often an important success factor.
Forming a company in Italy is a very bureaucratic process and assistance in this process is highly recommended. Deals with agents and distributors should be overseen by legal adviser since regulations differ a lot from Swedish practise.
Differing rules and regulations
Differing rules and regulations
Source: STC, interviews
41
THE ITALIAN AUTOMOTIVE INDUSTRY IS LOOKING FOR SUPPLIERS COMPETITIVE IN BOTH PRICE AND TERMS OF DELIVERY
DeliveryDelivery
PricePrice
Closeness to customer
Closeness to customer
Industry specific recommendations for doing business with the Italian automotive industry
Lead time and frequency of delivery are important selection criteria. Supply-mix flexibility and sequenced-in-line supply capabilities are also key success factors when competing for doing business with Italian automotive companies.
Price competitiveness is very important and it is generally viewed as an advantage if the prospective supplier has its own manufacturing facility in a low cost country.
Local presence with manufacturing-, logistics- (e.g. warehouse) or commercial premises as close as possible to the customer’s manufacturing plants or purchase decision centres can be a key selection criterion when the Italian automotive company chooses supplier.
Source: STC, interviews
42
Overview Italian industry
Italian Automotive industry
Recommendations
References
CONTENT
43
STC IN ITALY CAN SUPPORT SWEDISH COMPANIES IN ALL ACTIVITIES FROM MARKET ANALYSIS TO BUSINESS START-UP
Evaluation of market characteristics and market potential. Identification and evaluation of business opportunities, customers and sales channels. Analysis of, and benchmark with, established competitors. Identification of possible trade laws and regulations affecting the specific product or service.
Business support office
Business support office
Partner search Partner search
Market analysisMarket
analysis
Business start-up
Business start-up
Identification and evaluation of potential distributors, agents and suppliers. Initiate and conduct discussions with potential partners. Arrangement and realization of business meetings.
Local sale- and Key Account support. Back-office support: Economic administration, customer service, administration of personnel.
Formation of Italian subsidiary. Recruitment / head hunting Property search Assistance in merger & acquisition
Source: STC
44
STC IN ITALY HAS A VAST EXPERIENCE OF HELPING SWEDISH FIRMS DOING BUSINESS WITH THE ITALIAN AUTOMOTIVE INDUSTRY
COMPANY PROFILE
Manufacturer of vehicle racking systems for service vans.
Producer of aftermarket body panels.
Manufacturer of car covers that protects the varnish.
Developer of electronic systems and software for automobiles,
trucks and buses.
Examples of Swedish companies STC in Italy have worked with on the Italian market
Source: STC
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