November 27, 2022

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Italy’s GDP grows and leads the G7, but pay attention to how aid is distributed | Melina Gabanelli

It will be hard to avoid the recession coming to Europe, but in the meantime Italy scored better than the other G7 countries. Thanks to the confidence boost given to the markets by the authority of the Draghi government for 20 months. With the many small and medium-sized businesses where entrepreneurs do their work, crisis response is with their own power by innovating new ways and mobilizing accumulated profits in growth stages. We owe them above all if the country survives.


Businessman who takes risks

there Gekko Taiki Sha A family business in Cinesolo, Balsamo, with 250 employees, it produces complete car paint divisions for car manufacturers. Since the European Commission announced that diesel and petrol cars will not be registered from 2035, Europe is considered too risky by many investors. Last April, Geiko’s Japanese partner (Taiki-sha actually) decided to leave Europe. Under an earlier agreement, the owner A. Reda Arabania to sell him his share (51%). At that point, he will close the company and send the employees home. The decision was to fund the family’s resources to acquire shares of the Japanese (who then remained shareholders with 14.5% access to Geiko Technologies). In short: approx 30 million investment in a complete crisis and to ease the group’s accounts the honorary president gave up his wages (total €400,000) for five years. Part of this amount (€1,000 net) was put into the salaries of all employees to counteract the price hike.
There is, too Masmec From Bari, a family company founded 40 years ago, with a turnover of 35 million euros and 290 employees, until a few years ago it produced only automatic machines and lines for assembling and testing components for cars with internal combustion engines. This type of business now covers only 20% of the turnover. For another 60% of Masmec, electric vehicle manufacturers are engaged, while it enters into the medical device sector for the last 20%. Changing production lines made it necessary to create one New headquarters with investments of 24 million. They partially gained access to European money, but they took the bulk of it out of their own pockets, and to keep up with this, they invest every year 15-20% of their revenue in research and development.

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ride change

Taking risks and sensing changes before others, innovating new products and services: this is what entrepreneurs do. Roberto Cimberio Company, The Simbiriu Spa It is about 100 years old and employs 200 employees in Lake Orta and produces valves. They are made of brass, but they are always valves that are not innovative in themselves. In 2015, Cimberio decided to get them to connect with digital technology. Controlling valves remotely, and doing so through a smart algorithm, means regulating heating and cooling flows. In this way, energy consumption in old buildings can be reduced without the need for renovation. Since digital skills are essential, he has started a close collaboration with a startup, Enersem, incubated at Polihub in Milan Bovisa, with 15 engineers. Initially, the company started with European financing 1.7 million, then the family put another 8.3 out of their own pocket. Then the results came with the first important commands. The Grana Padano Protection Consortium uses its own regulating system to maintain a constant temperature in the old warehouses. And now hotels are installing them, too. There are still plenty of sleepless nights – says Simpirio – but the goal is getting closer, which is to bring this technology into homes.


company community

Those with less broad shoulders also need the help of employees to respond to a crisis. Especially in energy-intensive activities, where shifts often need to be reorganized to focus production by making the most of factories. In the Argo de BaranzatiIn the suburbs of Milan rubber gaskets are produced. The 50 employees have always worked two shifts, but since September to adjust to energy prices, they’ve also introduced the night shift so factories aren’t closed. Since there weren’t enough orders to saturate every day of the week, they stayed put Friday And the The staff agreed to consider it vacation Thus, facing the difficulties faced by the company. This way the bills settled. Now with the price of gas down, they expect to get back to normal and have profits to redistribute at the end of the year.

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Share profits with employees

Of course, if we all tighten our belts, the company should be willing to redistribute more when all goes well. For example, the construction is sailing at full speed, thanks also to the payment of the environmental bonus. In the Genesio Setten of Oderzo, in the province of Treviso, they could simply give a bounty, as many do. instead of the company Decided to redistribute 20% of profits to 140 employees annually. The new system will start in 2023 based on the profits of 2022. The evaluations of the technical departments are then reviewed with representatives of workers and employees. Regarding the merit of each award, the award can range from a minimum of 100 euros to more than a thousand. The parameters considered are quantitative but also qualitative: ability to cooperate, fairness and reliability.


steadfast italy

One would think that those mentioned here are exceptional cases, which do not reflect the health of our production system. But not so. The data shows that Italy is getting up to date with the risk of a recession more prepared than many other countries. Economist Marco Fortes of the Edison Foundation has highlighted this on several occasions: Our factory has become more productive than the German factory.



The situation on the fiscal front is quite different: we currently have one of the highest debts in Europe, equal to 150% of GDP.. It means that we cannot afford to increase public spending. Inflation is a concern, driven by gas prices that are now around 100 euros per megawatt-hour: in August it reached a peak of 300 euros, but it is far from 20-30 euros in the pre-crisis period. Moreover, gas, in the end, may not be sufficient and rationing scenarios are not excluded. In this context, the government is preparing to define the budget law. Requests for assistance multiply from the productive categories. But among the ranks of those who really need, there are also sectors and companies that can do it on their own, as already happened during the Covid emergency when pharmaceuticals and major retailers were backed by public aid. Even today, repayment is expected for all energy-intensive companies regardless of financial strength.


Help with data transit

Rigorous selection of companies to support is critical. For two reasons. One: markets can tolerate new deficit-financed spending that is poorly funded to provide assistance to those who don’t need it (the UK’s recent experience teaches us). Two: providing public assistance so that it doesn’t make the increase in energy prices seem too much, even to companies that can do it on their own, doesn’t really push them to do everything they can to reduce consumption. It also applies to families. Finally: To help people who are unable to face the crisis in a real and just way, it is necessary to take responsibility for crossing all databases with invoices for which relief is sought.

November 7, 2022 | 06:47

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