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THE AUTOMOTIVE AND CONSTRUCTION EQUIPMENT INDUSTRY ITALY Fact Pack

Swedish Trade Council in Italy 2006

1

CONTENT



Overview Italian Manufacturing Industry



Italian Automotive Industry



Italian Construction Equipment Industry



Recommendations



References

2

THE ITALIAN MANUFACTURING INDUSTRY PRODUCES FOR A VALUE OF SEK 7 600 BILLION 

5 largest manufacturing industries in Italy Machinery construction Thefood industry



Automotive



Chemicals Metal products 0

200

400

600

800 

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

Billion SEK

construction and food production stand for 20% of the total Italian manufactu

e: ISTAT, Eurostat

3

CONTENT



Overview Italian Manufacturing Industry



Italian Automotive Industry 

Passenger Cars



Commercial Vehicles



Suppliers



Italian Construction Equipment Industry



Recommendations



References

4

THE ITALIAN PRODUCTION OF CARS AND COMMERCIAL VEHICLES TOTALS SEK 407 BILLION - the latest statistics an upswing in Production of cars andindicates commercial vehicles billion 500 industry in Italy SEK value of production Trailers and containers SEK 14 billion

400 300

Vehicles Components andand engines accessories SEK 132 billion SEK 260 billion

200 100 0 2001

2002

Domestic

2003

Export

Growth mainly due to increasing exports of Italian automotive suppliers

rce: ISTAT

5

MORE THAN 1 MILLION VEHICLES ARE PRODUCED IN ITALY - Italy stands for about 5 % of the worldwide vehicle production VEHICLE MANUFACTURERS

COMMERCIAL VEHICLES (314 000 vehicles) LIGHT TRUCKS (270 000 vehicles) 

3 manufacturers 





Iveco (part of Fiat Group): 183 000 Sevel (Joint Venture between Fiat Auto and PSA): 81 000 Piaggio: 6 000

Source: Automobile Produktion

HEAVY TRUCKS (40 000 vehicles) 

1 manufacturer 



BUSSES (4 000 vehicles) 

Iveco (part of Fiat Group)

Trailer manufacturers      

Rolfo Merker (Margaritelli) Acerbi – Viberti Officine Cardi Menci & C. Pezzaioli Carozzeria

3 manufacturers 





6

Irisbus (part of Iveco): 3 200 Carozzeria Barbi (Volvo): 400 Breda Menarini Bus: 400

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

CONTENT



Overview Italian Manufacturing Industry



Italian Automotive Industry 

Passenger Cars



Commercial Vehicles



Suppliers



Italian Construction Equipment Industry



Recommendations



References

7

THE ITALIAN PRODUCTION OF PASSENGER CARS HAS PERFORMED POORLY BUT IS SHOWING SIGNS OF RECOVERY Passenger Car Production in Italy Development the last 5 years 

Vehicl 1500000 es

The Italian quote of the worldwide vehicle production has decreased from 8,2 % in 1999 to 4,7 % in 2004. 

1250000

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: 

1000000 750000

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. 

500000 250000 0 2001

2002

ws, ANFIA, Il Sole 24 Ore

2003

2004

2005 

Fiat is now however showing signs of a strong recovery and future prospects looks brighter. 8

FIAT’S PURCHASE DECISIONS FOR THE ITALIAN PRODUCTION IS CENTRALISED TO HEADQUARTER IN TURIN Manufactu Employe Business Purchase decisions rer es

Passenger Cars

Fiat Auto

180.000Passenger HQ, Turin, Italy (For all Italian production. cars Also has local HQs in Brazil and Turkey with Transporters authority to make purchase decisions)

Pininfarina

2.090Passenger 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

1.796Passenger cars

GM-Opel, HQ Europe, Rüsselsheim, Germany.

Volkswagen Group (Lamborghini)

urce: Kompass, interviews

350Passenger cars

HQ of Lamborghini, S. Agata Bolognese (Bologna), Italy

9

THERE ARE A TOTAL OF 13 CAR MANUFACTURING PLANTS IN ITALY - Fiat Most of them are operated by Fiat Auto Manufactur Plants Models and focus Productio Group Pininfarina Bairo Canavese Pininfarina San Giorgio Canavese Pininfarina Grugliasco Bertone Grugliasco

er

Chivasso

Fiat Group Mirafiori Fiat Group Cassino Fiat

Fiat Group (Ferrari) Maranello Fiat Group (Maserati) Modena Wolkswagen Group (Lamborghini) Sant’ Agata Bolognese Fiat

Fiat Group Fiat Lancia Alfa Romeo Maserati Ferrari

       

Cassino Fiat: Chivasso (Croma, Stilo, Punto, Maranello Idea, Multipla) (Ferrari) Lancia: Melfi (Y, Lybra, Musa, Thesis) Mirafiori Alfa Romeo: Modena (166, 147, 148, 156, (Maserati) 159, 169, Brera, CPomigliano Cross Over,GT Coupe) Termini Imerese Ferrari: (355/456GT/550/FXX) Maserati: (Quattroporte,Coupè Cambiocorsa; ITCA body-in-whites)

700 000

Group Melfi

Group Pomigliano

Fiat Group Termini Imerese

mobile Produktion, interviews

n volume

10

Volkswagen Group Lamborghini



Sant’ Agata Bolognese

Pininfarina No own brands

  

Bairo Canavese Crugliasco San Giorgio Canavese



Lamborghini : (Gallardo, Murcielago)

1 500

Mitsubishi: (Colt, Pinin Pajero) Alfa Romeo: (8C Competizione, Spider) Ford : (Focus, StreetKa)

14 000

FIAT IS SHOWING SIGNS OF AN IMPRESSING TURN AROUND AFTER YEARS OF POOR PERFORMANCE 

Trends within the Italian passenger car After many years of losing market shares and reporting huge losses, Fiat’s car business is showing signs of industry 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.

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.

Globalization





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.

Fragmentation of market

urce: STC, Interviews

11

CONTENT



Overview Italian Manufacturing Industry



Italian Automotive Industry 

Passenger Cars



Commercial Vehicles



Suppliers



Italian Construction Equipment Industry



Recommendations



References

12

ITALIAN PRODUCTION OF COMMERCIAL VEHICLES WHICH IS HEAVILY DOMINATED BY LIGHT TRUCKS IS INCREASING Commercial Vehicle Production in Development the last 5 years Italy

Vehicl

350000 es



300000 250000 200000

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 

150000



100000 

50000 0 2001

2002

2003

Light Trucks

rce: STC, Interviews, ANFIA, UNRAE

2004

Heavy Trucks

2005

Buses



13

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.

THE ITALIAN PRODUCERS FIAT AND IVECO BOTH MAKES PURCHASE DECISIONS AT HEADQUARTERS IN TURIN Manufacturer Employe Business Purchasing decisions es

Commercial vehicles

IVECO (Fiat Group)

31.511Light HQ, Turin, Italy Commercial Vehicles, Heavy Trucks, Busses

Sevel (Joint venture between Fiat Auto and PSA )

5.200Light 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

3.500Light Commercial Vehicles

HQ, Pontedera, Italy

Irisbus (Fiat Group)

1.393Busses

HQ, Turin, Italy (Fiat Group) HQ, Lyon, France (Irisbus)

BredaMenarini Bus

rce: Anfia,Kompass,interviews

310Busses

HQ, Bologna, Italy 14

THE ITALIAN COMMERCIAL VEHICLE INDUSTRY IS DOMINATED BY FIAT AND FIAT CONTROLLED IVECO Manufacturer Plants Models and Productio focus

Iveco Suzzara

Iveco Brescia

Piaggio Pontedera

mobile Produktion, interviews

Irisbus Valle Ufita

Carrozzeria Barbi San Giacomo Roncole Breda Menarini Bus San Donato Sevel (Fiat Auto and PSA) Val di Sangro

Sevel (Joint venture between Fiat Auto and PSA)



Val di Sangro

IVECO

  

Suzzara Brescia Bolzano

Piaggio (Produces own brand and for Daihatsu)



Irisbus (Controlled by IVECO and part of Fiat Group) Carrozzeria Barbi (produces for Volvo)

Citroen: (Jumper) Fiat: (Ducato) Peugeot: (Boxer)

183 000

Iveco: (Daily,Eurocargo, Stralis)

81 000

Pontedera

Piaggio: (Porter) Daihatsu: (Hijet)

6 000



Valle Ufita

Irisbus: (Cityclass, Citelis, Midway, Midys, Arway, Evadys)

3 200



San Giacomo Roncole

Volvo: (Genesis)

400

Breda Menarini Bus: (M231C, M231M, M240N, M240L, Avancity, M340, M240LI, M200E, M231CNG, M240CNG, M240EI)

400

Breda Menarini  San Donato Bus

15

n volume

THE POSITIVE TREND WITH A RISING PRODUCTION OF COMMERCIAL VEHICLES SHOWS NO SIGNS OF STAGNATING Trends within the Italian commercial vehicle industry



The Italian producers of commercial vehicles are performing strongly 

Increasing production volumes



In order to achieve economies of scale and to share fixed costs the industry has been consolidating 

Consolidation of market



Customized services

urce: STC, Interviews

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.

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.

16

CONTENT



Overview Italian Manufacturing Industry



Italian Automotive Industry 

Passenger Cars



Commercial Vehicles



Suppliers



Italian Construction Equipment Industry



Recommendations



References

17

THERE ARE ABOUT 1 700 AUTOMOTIVE SUPPLIERS IN ITALY - But the medium size of companies is rather of Geographical concentration Italian automotive suppliers automotive suppliers 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: 



The Italian suppliers are generally small or medium sized companies: 





Close to a third of all suppliers are based in the region of Piedmont where Turin and the HQ of Fiat is located.

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.

Source: STC, interviews, ANFIA

Low 18

High

EVEN DUE TO A CONSOLIDATION OF MARKET THE NUMBER OF ITALIAN AUTOMOTIVE SUPPLIERS IS STILL HIGH T1 SUPPLIERS (examples of the largest ones)

Electrical systems Interior equipment

Propulsion

Body

Running gear

Cables, bus systems, Cockpit, seats, dashPower train, exhaust Body, roof, glass, Suspension, brakes, embedded systems board, air conditioning systems, engines doors, lighting etc. axles, steering, tires  Magneti Marelli  Lear Corporation  Magneti Marelli Sistemi  Magneti Marelli  Automotive Sistemi Elettronici Sospensioni  Delphi Italia Powertrain  Delphi Italia Lighting Rear Automotive Systems  Delphi Italia  Sogefi Automotive Systems Lamps Italia  Valeo  Pirelli Tyre Automotive Systems  Valeo  Intier (Magneti  Dayco Europe  Carraro  T.R.W Automotive Italia Fiamm Automotive Marelli)  Brembo S.p.A Batteries  Lear  Delphi Italia Automotive  Johnson Controls Italia Systems 

Source: Anfia,interviews

19

Corporation Valeo

 

T.R.W Automotive Italia Bosch -Tecnologie Diesel e Sistemi Frenanti

T1 Suppliers

TIER ONE SUPPLIERS: DETAILED INFORMATION (1/2) Manufacturer Employe Business es

Italian headquarter

Pirelli Tyre

21.500Tyres

Milan

Magneti Marelli Holding S.p.A

20.000Powertrain, suspension, lighting, electrical systems

Turin

Sogefi

6,171Engine and cabin filtration. Suspensions components.

Lear Corporation

3.000Seat systems, electronic Grugliasco products and air-conditioning,

T.R.W Automotive Italia

2.260Brakes, suspension

Moncalieri (Turin)

Brembo

2.000Brakes

Curno

Bosch- Tecnologie Diesel e Sistemi Frenanti Italia

1.942Diesel engine injection pumps. Modungo (Bari) Brakes components.

urce: Kompass, interviews

20

Mantova

TIER ONE SUPPLIERS: DETAILED INFORMATION (2/2)

T1 Suppliers

Manufacturer Employe Business es

Italian headquarter

Dayco Europe

1.164Power transmission, air-intake Airasca (Turin) and engine cooling

Valeo

1.130Lighting, electrical systems, motors, engine cooling etc

Santena (Turin)

Delphi Italia Automotive Systems

885Chassi, steering systems, powertrain, safety systems

Collegno (Turin)

Johnson Controls Italia

200Electronic components for air Milan conditioners.

urce: Kompass, interviews

21

FOR STRATEGIC REASONS THE T1 SUPPLIERS ARE MOSTLY FOUND NEAR THE HQs AND PLANTS OF THE OEMs Tolmezzo Curno Brembo

Automotive Lighting Rear Lamps Italia (Magneti Marelli)

Milan Magneti Marelli Sistemi Elettronici Pirelli Tyre Johnson Controls Italia

Montecchio Maggiore Fiamm Automotive Batteries Bologna Magneti Marelli Powertrain Mantova Sogefi

Turin Delphi Italia Automotive Systems Valeo Lear Corporation Italia T.R.W Automotive Italia Dayco Europe Magneti Marelli Sistemi Sospensioni

Source: STC

Bari Bosch - Tecnologie Diesel e Sistemi Frenanti

22

MANY T2 SUPPLIERS ARE SMALL, LOW VALUE ADDING FIRMS THAT FACE HARD COMPETITION FROM LOW-COST COUNTRIES T2 SUPPLIERS (examples of the largest ones)

Electrical systems Interior equipment Cables, bus systems, embedded systems  ITT Industries Friction Products  ASK Industries

Source: Anfia, Automobil Cluster

Propulsion

Body

Running gear

Body, roof, glass, Cockpit, seats, Power train, Suspension, doors, lighting etc. dash-board, air exhaust systems, brakes, axles,  Automotive conditioning engines steering, tires Lightning Italia  Gammastamp  Fonderie  Gruppo Sogefi Rear Lamps Mario  Conceria (Magneti Marelli)  Metelli Mazzucconi Pasubio  Federal Mogul  Olsa  SKF Industrie  Federal Mogul Operations  Metelli Operations Italy Italy  Ufi Filters  Sila Holding Industriale

23

T2 Suppliers

TIER TWO SUPPLIERS: DETAILED INFORMATION (1/2) Manufactur Employe Business er es

Italian headquarter

Sogefi

6.171Filters, suspension and precision springs

Mantova

ITT Industries Friction Products

1.000Electronic components

Barge

SKF Industrie

944Bearings

Villarperosa (Turin)

Automotive Lighting Italia Rear Lamps

800Lighting

Tolmezzo

Gammastamp

730Components for safety belts, doors etc

Bianzé

Metelli

420Brake parts, engine parts, transmission

Cologno Monzese (Monza)

e: Anfia, Automobil Cluster, Kompass

24

T2 Suppliers

TIER TWO SUPPLIERS: DETAILED INFORMATION (2/2) Manufactur Employe Business er es

Italian headquarter

Fonderie Mario Mazzucconi

388Components for engines, transmission and brakes etc

Bergamo

ASK Industries

300Car audio e antenna systems, amplifiers, cables etc

Reggio Emilia

Conceria Pasubio

250Leather for carseats

Arzignano, Padua

Ufi Filters

230Filters

Nogarole Rocca (Verona)

Federal Mogul Operations Italy

135Components for lighting, Turin friction and power cylinder systems

Olsa

Source: Anfia, Automobil Cluster

51Interior and exterior lighting components

25

Turin

ITALIAN SUPPLIERS HAVE DIVERSIFIED THEIR CUSTOMER BASE, AND SPECIALISED THEIR PRODUCT PORTFOLIOS Trends within the Italian automotive supplier industry



Customer portfolio diversification

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. 



Product portfolio specialization

Italian automotive suppliers are slowly becoming more specialized (i.e. creating product portfolios with focus on core products, technologies and competences). 



urce: STC, interviews

 

With these more specialized product portfolios suppliers are at the same entering similar non-automotive industrial sectors.

Delocalization of Italian automotive suppliers: 

Strategic cost reduction actions

Italian suppliers are now performing very well because of increasing exports and less dependence on Fiat Group.

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

26

CONTENT



Overview Italian Manufacturing Industry



Italian Automotive Industry



Italian Construction Equipment Industry 

Manufacturers



Suppliers



Recommendations



References

27

THE ITALIAN PRODUCTION OF CONSTRUCTION EQUIPMENT TOTALS ABOUT SEK 43 BILLION - the industry grew with more than 8% in 2005 Production machine and construction vehicles in Italy Road Equipment SEK 3 billion Concrete Equipment

billion SEK 40

SEK 6 billion

30

Tower Cranes SEK 3 billion

20

10

Earthmoving Equipment

0 2002

2003

Domestic

2004

SEK 29 billion

2005

Crushing, Washing, Sizing Equipment SEK 2 billion

Export

Growth mainly a result of increases in exported volumes

mmittee for European Construction Equipment

28

TOTALLY THERE ARE ABOUT 300 COMPANIES ACTIVE WITHIN THE CONSTRUCTION EQUIPMENT INDUSTRY IN ITALY - But many companies are small and only active EQUIPMENT locally (examplesCONSTRUCTION of the largest companies in the industry)

EARTH MOVING Excavators, wheel loaders, backhoe loaders, Skid steer loaders, 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

Source: UCoMESA , Anima

MINING Wheel loaders, drills, haulers  

Solimec Casagrande



   

29

LIFTING

ROAD

Mobile cranes, forklifts

Graders, asphalt pavers, asphalt mixers Bitelli (Catepillar

Marchetti Autogru Raimondi Merlo Terexlift Amoc Veba Srl

   

Italia) Antec Marini CNH (Fiat Group) Fiori SpA

CONSTRUCTION EQIPMENT OEMs: DETAILED INFORMATION (1/2) Manufactur Business er

Turnover Employe Plant es (EUR m)

Purchasing decisions

CNH (Fiat Group)

Escavators, skid steer € 9 796 m 2.704 loaders, backhoe loaders

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 € 75 m planers

265

Minerbio

HQ, Minerbio, Italy

Terexlift

Lifting platforms

€ 50 m

130

Umbertide

HQ, Umbertide, Italy

Hydraulic Crawler Drills, € 39 m piling equipment, rce: Kompass, UCoMESA, Anima, crawler cranes

250

Fontanafred HQ, Fontanafredda, da Italy

Casagrande

30

CONSTRUCTION EQIPMENT OEMs: DETAILED INFORMATION (2/2) Manufactur Business er

Turnover Employe Plant es (EUR m)

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 HQ, Finale Emilia (Modena) (Modena), Italy.

Euromach

Excavators

€ 3.5 m

24

Montichiari HQ, Brescia, Italy (Brescia)

Macmoter

Excavators, skid track loaders, dozers, prime movers

€3m

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

n/a

Cesena

HQ, Cesena, Italy

rce: Kompass, UCoMESA, Anima, Soilmec Rotary

rigs, drilling

n/a

31

THE ITALIAN CONSTRUCTION EQUIPMENT INDUSTRY IS CONCENTRATED TO THE REGION EMILIA ROMAGNA Vicenza Fontanafredda Brescia Komatsu Euromach Milan Antec Raimondi

Casagrande

Alfonsine Marini Minerbio Bitelli

Cervasca Merlo Piacenza Marchetti Autogru Astra Veicoli Industriali Poviglio Amoc Veba Mode na CNH Fiori

Modigliana Macmoter Umbertide Terexlift

32

Cesena Soilmec

CONTENT



Overview Italian Manufacturing Industry



Italian Automotive Industry



Italian Construction Equipment Industry 

Manufacturers



Suppliers



Recommendations



References

33

MOST OF THE ITALIAN SUPPLIERS TO THE CONSTRUCTION EQUIPMENT OEMs ARE SMALL AND MEDIUM SIZED COMPANIES SUPPLIERS (examples of the largest ones)

Propulsion and running gear

Electrical systems Cables, sensors, semi conductors, control units

Siemens Vdo Trading Robert Bosch 

Power train, engines, Undercarriage and body exhaust systems, axles    

Source:STC, interviews

Steel construction

SKF Italia Cararro SpA Bosch Rexroth SAIM Europe Srl

Italscania SpA  Perlini International 

34

Accessories

Hydraulics All kind of hydraulic cylinders

All kind of accessories

Bosch Rexroth  C.A.M.I  Hydrocontrol Homberger  Safim SpA





Berco SpA  Cobo  Case del Sedile  Isringhausen  Webasto product Italy

CONSTRUCTION EQUIPMENT SUPPLIERS: DETAILED INFORMATION (1/2)

Construction equipment suppliers

Manufacturer

Employe Business es

Purchasing decisions

SKF Italia

3649

Propulsion and running gear HQ, Turin, Italy

Berco

3000

Accessories

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

rce: STC, Kompass, interviews

35

HQ, Ferrara, Italy

CONSTRUCTION EQUIPMENT SUPPLIERS: DETAILED INFORMATION (2/2) Employe Business es

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 Trading30

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

Construction equipment suppliers

Manufacturer

rce: STC, Kompass, interviews

36

HQ, Milan, Italy

THE SUPPLIERS TO THE CONSTRUCTION EQUIPMENT OEMs ARE CONCENTRATED AROUND MILAN IN THE Brescia REGION OFTrento LOMBARDY Varese Isringhausen Milan Siemens Vdo Trading Robert Bosch Webasto Product Italy Bosch Rexroth Saim

urce: STC, interviews

Cobo

Italscania Padova C.A.M.I. Carraro Verona Perlini International Ferrara Berco

Turin SKF Itallia

Modena Casa del sedile Safim

Genua Homberger Bologna Hydrocontrol

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THE GROWTH OF THE ITALIAN PRODUCTION OF CONSTRUCTION EQUIPMENT IS EXPECTED TO CONTINUE - In large parts based on increasing foreign demand 

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.

Continuous growth in produced volumes

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Increasing competition from far east countries

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Weight of exports as part of total sales increases

urce: STC, interviews

Trends within the Italian Construction industry In 2005 the ItalianEquipment production of construction machinery increased with more than 7.5 %. In the

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.

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CONTENT



Overview Italian Manufacturing Industry

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Italian Automotive Industry

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Italian Construction Equipment Industry

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Recommendations

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References

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WHEN DOING BUSINESS IN ITALY LOCAL PRESENCE CAN MANY TIMES PROVE TO BE A GREAT ADVANTAGE Country specific recommendations for doing business in Italy

Local presence important

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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.

Fragmented value chains

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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



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.

Late payments

urce: STC, interviews

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THE ITALIAN AUTOMOTIVE INDUSTRY IS LOOKING FOR SUPPLIERS COMPETITIVE IN BOTH PRICE AND TERMS OF DELIVERY 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.

Delivery



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.

Price



Closeness to customer

urce: STC, interviews

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.

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CONTENT



Overview Italian industry



Italian Automotive industry



Recommendations



References

42

Source: STC

STC IN ITALY CAN SUPPORT SWEDISH COMPANIES IN ALL ACTIVITIES FROM MARKET ANALYSIS TO BUSINESS START-UP   

Market analysis

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  

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.

Identification and evaluation of potential distributors, agents and suppliers. Initiate and conduct discussions with potential partners. Arrangement and realization of business meetings.

Partner search

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Business support office

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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

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Business startup

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Source: STC

STC IN ITALY HAS A VAST EXPERIENCE OF HELPING SWEDISH FIRMS DOING BUSINESS WITH THE ITALIAN AUTOMOTIVE INDUSTRY Examples of Swedish companies STC in Italy have worked with on the Italian market

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.

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