L'Italo-Americano

L'Italo-Americano THURSDAY, AUGUST 10, 2023 www.italoamericano.org 6 NEWS & FEATURES TOP STORIES PEOPLE EVENTS Florida and Texas with 12, Kentucky and Pennsylvania with 11, Indiana and Michi- gan with 10. Another intriguing aspect h i g h l i g h t e d b y t h e s t u d y commissioned by the Italian Embassy pertains to the geo- graphical origin of Italian investors. "From Lombardy a l o n e , " t h e s t u d y r e a d s , " c o m e a s m a n y a s 6 4 2 i n v e s t o r s p r e s e n t w i t h a t least one affiliated company i n t h e U S , a c c o u n t i n g f o r over a third of the total; fol- lowed by Veneto with 316 investors, Emilia-Romagna with 297, and Piedmont with 151. The combined weight of these four regions amounts to over three-quarters of the investing entities, over two- thirds of the affiliated com- panies, and about 90% of the employees and revenue of the affiliated companies (for these last two variables, Piedmont provides the most s i g n i f i c a n t c o n t r i b u t i o n , thanks to the activities of the Fca-Stellantis group)." P r o f e s s o r M a r c o A . Mutinelli , who has been studying the strategies of Italian multinationals for years, explains to L' Italo- Americano what the report reveals, our strengths, and the sectors to focus on. He emphasizes the power of the "Made in Italy" brand and the significance of Italian origins for those operating i n t h e U S m a r k e t . T h e research was commissioned by the I t a l i a n E m b a s s y a n d c o n d u c t e d b y t h e Department of Mechanical and Industrial Engineering at the University of Bres- cia under the guidance of Professor Mutinelli, who has co-authored many "Multina- tional Italy" reports promot- ed by ICE. Beyond the numbers a n d g r o w i n g p e r c e n t - ages, the study showcas- es the vitality of the Ital- ian system. Businesses are thriving, investing in significant markets, and eager to expand. What are our strengths? The US market is the pri- mary global market in many sectors. Naturally, it attracts major companies that have m a d e s i g n i f i c a n t i n v e s t - m e n t s o v e r t h e p a s t t w o decades, such as Fiat, Enel, Leonardo, Luxottica, etc. H o w e v e r , m e d i u m - s i z e d businesses, the real heart of the Italian economy espe- c i a l l y i n m a n u f a c t u r i n g , have also been very active. W e ' r e t a l k i n g a b o u t b o t h s e c t o r s w e t r a d i t i o n a l l y associate with the idea of "Made in Italy" (personal and home goods: fashion, eyewear, home furnishings, food, and beverages) and businesses operating in B2B markets producing machin- ery, equipment, and compo- nents. Initially, these com- panies followed their major clients in location choices, but now, having secured a prominent position in their market niches, they aim to establish a direct presence in the main markets. While the strengths of "Made in Italy" are well-known, these companies excel in offering c u s t o m i z e d s o l u t i o n s t o their clients and the quality of their products, position- ing them in a more upscale and sophisticated market segment compared to their larger, more standardized international competitors. I n y o u r o p i n i o n , which sectors should we focus on, and what do these companies need to invest in a commercial p a r t n e r s h i p w i t h t h e US? The vastness of the US m a r k e t o f f e r s i m m e n s e opportunities to any well- positioned company looking to broaden its horizons. The presence and role of Italian companies on international markets are often underesti- mated, but those who work with them recognize their value and capabilities. It's crucial to support Italian companies, both to better inform the public and local p o l i c y m a k e r s a b o u t t h e strengths of an industry that doesn't enjoy the visibility of major companies (think of German, Swiss, or French industries) and to introduce t h e m t o t h e l o c a l m a r k e t t h r o u g h i n f o r m a t i o n a n d contacts. The risk is that people associate "Made in Italy" primarily with fash- i o n , f u r n i t u r e , a n d f o o d when, in reality, our excel- lences are much more wide- spread across various sec- tors. H o w w o u l d y o u describe the economic state of the West Coast: multinationals focus on electronics, automotive, food, eyewear, and tires. W h a t o t h e r m a r k e t s could be successful? T h e s e c t o r s y o u m e n - tioned are vast and full of opportunities, which Italian companies can exploit even more, perhaps by investing i n p r o d u c t i o n a c t i v i t i e s , given the strong support the US government is providing to its manufacturing indus- try. The goal is to reduce the c o u n t r y ' s m a s s i v e t r a d e deficit and dependence on i m p o r t s , e s p e c i a l l y f r o m China. However, there are equally important sectors where Italian companies can f i n d g r e a t o p p o r t u n i t i e s : e q u i p m e n t , m a c h i n e r y , installations, and compo- nents - the sectors I high- lighted earlier - where many I t a l i a n c o m p a n i e s e x c e l . There are also significant opportunities in services, a sector where Italian compa- nies have rarely made a sig- n i f i c a n t i n t e r n a t i o n a l impact. There are signs of a growing Italian presence in these sectors. What role do Italians play in California, that is, how important is the Italian origin of many entrepreneurs working w i t h U S - p a r t i c i p a t e d companies? H a v i n g a s t r o n g l o c a l community of managers and entrepreneurs with Italian roots can only have positive effects on the presence of our companies in the US. It m e a n s i t c a n b e e a s i e r t o find managers for their sub- sidiaries, managers who are already deeply familiar with t h e l o c a l m a r k e t a n d i t s rules. This reduces the risks inevitably associated with i n v e s t i n g a b r o a d . A t t h e same time, these managers and entrepreneurs usually maintain a strong connec- tion with their country of o r i g i n , w h i c h c a n l e a d t o new opportunities for Italian companies not yet signifi- cantly present on the West Coast and, more broadly, in the US. Ambassador Zappia says that "Italy has always been a reliable partner for the US. We aim to grow investments in both directions. The Embassy, under the guidance of the Farnesina, consistently works towards this goal" Continued from page 4 Professor Mutinelli lead the University of Brescia research commissioned by the Italian Embassy in the USA (Photo courtesy of Marco A. Mutinelli)

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