"Trump's 10% tariffs are deemed excessively high"
In the heart of Italy, the industrial system of Piedmont is navigating a complex landscape, according to a recent joint survey by the Study Center of the Union of Industrialists of Turin. The report highlights several current concerns and challenges that companies in the region are facing, primarily due to geopolitical chaos, global tensions, and high energy costs.
Marco Gay, president of the Union of Industrialists of Turin, has expressed concern over the geopolitical and global tensions that are complicating supply chains and international trade relations. Companies are finding it difficult to adapt to the unstable and unpredictable geopolitical environment, which leads to disruptions in sourcing, increased risks, and the need for rapid adaptation to changing global conditions.
Another significant challenge is the sharp rise in energy costs, which directly impacts production expenses and overall competitiveness. The pressure on energy infrastructure creates concerns about reliability and sustainability, affecting industrial output and planning. To address this issue, companies are investing in sustainable energy solutions and re-engineering supply chains.
Innovation and adaptation pressures are also mounting. With stricter regulations and the need to remain competitive, firms are adopting advanced technologies such as traceability systems. However, implementing these technologies involves significant upfront costs and strategic organizational changes.
Operational flexibility is another critical aspect that industries in Piedmont must enhance to maintain efficiency and quality. With growing complexity in consumer demand and rising energy demands, industries must adapt to remain agile and responsive to changing market conditions.
Despite these challenges, there are signs of resilience in the Piedmont industrial system. Employment is on the rise, with a 2.1% increase, although it remains positive. The tertiary sector, including business services and ICT, is expanding in Turin.
However, the manufacturing sector, which represents two-thirds of the overall sample, still registers negative balances. Production, exports, and regional profitability have decreased by 5.4, 2.5, and 1.7 percentage points, respectively.
Andrea Amalberto, president of Confindustria Piedmont, believes that Piedmont's increasingly diversified economic fabric is the main element of stability and growth. He criticizes a scenario where the economic future is drawn by those who look in the rearview mirror rather than at future challenges.
In response to the challenges, Gay emphasizes the need for a clear industrial policy for growth, despite the difficulties. He believes that in a globalized economy, the only acceptable solution for tariffs is zero. Over a quarter of the sample, approximately 1,200 companies, plan to purchase new plants, a 1% increase from March.
At the provincial level for Turin, there is a surge in investments, with a 5.7% increase from the second quarter, equating to 75.7%. Orders are also picking up, with a 5.2% growth of 3.6 points.
In Turin, the uncertainty of Donald Trump's tariffs is present but less so than elsewhere. Gay expresses concern over potential tariffs, stating that 30% is unthinkable, but neither is 10% acceptable.
Amalberto notes that Piedmont successfully meets the challenges related to environmental and technological transition in 2025. However, the road ahead is not without its challenges, and the Piedmont industrial system must continue to adapt and innovate to remain competitive in the global market.
- The industrial system in Piedmont is faced with concerns and challenges, including geopolitical chaos, global tensions, and high energy costs, according to a joint survey by the Study Center of the Union of Industrialists of Turin.
- Marco Gay, president of the Union of Industrialists of Turin, has expressed concern over the unstable and unpredictable geopolitical environment, which leads to disruptions in sourcing, increased risks, and the need for rapid adaptation to changing global conditions.
- Another significant challenge is the sharp rise in energy costs, which directly impacts production expenses and overall competitiveness, causing pressure on energy infrastructure and affecting industrial output and planning.
- In the policy and legislation domain, there is a call for a clear industrial policy for growth, with over a quarter of the sample planning to purchase new plants, despite the difficulties and uncertainties in the general news, like Donald Trump's tariffs.
