L'Italo-Americano

THURSDAY, JUNE 25, 2026 www.italoamericano.org L'Italo-Americano 2 I taly is home to roughly 1 2 0 , 0 0 0 e x p o r t i n g companies. Of these, more than 118,000 are s m a l l a n d m e d i u m - s i z e d e n t e r p r i s e s ( S M E s ) , accounting for 98% of the total. This means that in an intensely c o m p e t i t i v e g l o b a l m a r k e t - place, the success of Italian exports and the strength of the Made in Italy brand depend not only on large corporations and multinational platforms, but also on thousands of determined entrepreneurs who believe in the value of their work despite operating with limit- ed resources and modest capital. Their contribution is remark- able: Italian SMEs generate approximately $328 billion in exports. Another figure deserves attention. Companies based in Southern Italy represent nearly one-third of all Italian busi- nesses, yet they account for less than one-tenth of the coun- try's manufacturing exports. This structural gap reflects the longstanding imbalance between the more developed North and a South that continues to lag behind, a divide that has his- torically constrained Italy's economic growth. Yet, looked at from another perspective, it also points to enormous untapped potential. With greater investment in the South, a reservoir of economic capacity that remains only partially expressed could expand significantly and become a powerful driver of growth for the entire country. Indeed, many businesses in Southern Italy have the poten- tial to become exporters if they receive the support needed to enter international markets. As Giuseppe Tripoli, Secretary General of Unioncamere, explained during the Obiettivo Export event organized by Italy's Ministry of Foreign Affairs and International Cooperation, the issue is largely one of per- spective: "For too long, Southern Italy has been portrayed as a region in need of recovery," he observed. Instead, it should be viewed as "a platform for growth." Over the past five years, Southern Italy's GDP has grown faster than the national aver- age (8.6% compared with 6.5%), while investment, tourism, Italy's export success is powered by its small firms From the Editor and manufacturing sectors, from mechanical engineering to apparel., ave outperformed many areas of Central and North- ern Italy. Industries such as agribusiness, pharmaceuticals, aerospace, and automotive manufacturing are also establish- ing an increasingly significant presence in international mar- kets. Put differently, the internationalization of Southern Italy could become a highly effective pillar of national economic policy if properly supported. That will require a willingness to invest now rather than postponing decisions, as has so often happened in the past. In this regard, it is important to highlight the role of SACE, Italy's export credit agency backed by the Ministry of Econo- my and Finance, in supporting the country's competitiveness over the next three years. SACE plans to make approximately $176 billion available in new commitments between 2026 and 2028, including $47 billion in 2026, $60 billion in 2027, and $68 billion in 2028. As SACE Chairman Guglielmo Picchi noted, "At a time when economics and geopolitics are increas- ingly interconnected, we are strengthening our commitment to supporting Made in Italy around the world and enhancing Italy's competitiveness by working in synergy with institu- tions, the financial system, and all the stakeholders of the national economic framework." If the capital is available, then economic policy must show greater determination in putting it to work. The plan is designed to support supply chains with strong export and internationalization potential. The key sectors identified include automation and industrial machinery, infra- structure and construction, the blue economy and shipbuild- ing, defense, and aerospace. Alongside these are strategic Made in Italy industries such as digital technologies and microelectronics, automotive manufacturing, agribusiness, chemicals, energy, steel and metallurgy, and textiles. There is, however, an important consideration regarding company size. Businesses that remain too small often lack the resources needed to finance research and development, acquire new technologies, protect patents, establish interna- tional branches, attract highly qualified managers, or sustain long-term investments before they begin to generate returns. While around 30% of Italian companies now use artificial intelligence tools, only 5% use them extensively. European data confirm the gap: in 2025, only 16% of Italian companies with at least ten employees were using AI technologies, com- pared with a European Union average of 20%. The objective, therefore, should not be limited to strength- ening companies that export directly. It should also involve reinforcing the broader Italian production ecosystem, includ- ing firms integrated into internationally oriented value chains. In this way, export support becomes a tool for enhancing the competitiveness of Italy's industrial sectors as a whole. The markets themselves provide evidence that the condi- tions for investment already exist. Foreign sales continue to grow despite tariffs, geopolitical tensions, and rising costs, while Italy's trade surplus reached $17.8 billion during the first four months of the year. Behind these encouraging fig- ures stands precisely the group of resilient medium-sized companies mentioned at the outset, businesses that consis- tently outperform many of their European competitors in terms of productivity. If size is not the decisive factor, then the real challenge lies elsewhere: in finding the determination to stop postponing what must be done today to secure tomorrow's economic growth. Simone Schiavinato, Editor Simone Schiavinato NEWS & FEATURES TOP STORIES PEOPLE EVENTS Member of FUSIE (Federazione Unitaria Stampa Italianaall'Estero), COGITO L'Italo-Americano Please send correspondence to P.O. Box 40156 Pasadena CA 91114 www.italoamericano.org L'Italo-Americano Newspaper (a 501(c)(3) non- profit organization), www.italoamericano.org, is the largest and longest-running Italian news- paper in America, not to mention the cultural and news resource for all things Italian in the US. A bilingual newspaper which represents an historical landmark for the Italian American Communities in the West Coast and throughout the US. L'Italo-Americano benefits from subsidies by the Italian Government, Memberships and Donations intended to support and not interrupt a mission that began in 1908 to preserve and promote the Italian language and culture in the USA Periodicals postage paid at Monrovia, California 91016, and additional mailing offices. PUBLISHER Robert Barbera Grande Ufficiale EDITOR IN CHIEF Simone Schiavinato ADMINISTRATIVE MANAGER Patrick Abbate EDITORIAL COORDINATOR Barbara Minafra COPY EDITOR Francesca Bezzone LOS ANGELES CONTRIBUTOR Silvia Nittoli SAN FRANCISCO CONTRIBUTOR Serena Perfetto SEATTLE CONTRIBUTOR Rita Cipalla CONTRIBUTING WRITERS Mariella Radaelli, Luca Ferrari, Francesca Bezzone, Luca Ferrari, Stefano Carnevali, Paula Reynolds, Teresa Di Fresco Nicoletta Curradi, Generoso D'Agnese, Jessica S. Levy, Fabrizio Del Bimbo, Anthony Di Renzo, Serena Perfetto, Kenneth Scambray, Chiara D'Alessio, Luca Signorini, Giulia Franceschini, Barbara Minafra © 2025 L'Italo-Americano Membership: One year $59 - Single copy $2.25 POSTMASTER: Send address changes to L'Italo Americano P.O. Box 40156 Pasadena CA 91114

• Cover