Digital transformation
in the Italian manufacturing industry

local insight italy altios

April 2023

The Italian manufacturing sector has experienced outstanding growth in 2022 and 2023.

Moreover, thanks to the steady advancement of digital innovation, 4.0 technologies at the service of companies and workers, particularly in the engineering and manufacturing sector, will be able to trigger a virtuous circle destined to foster strong growth in the next three years.

How are companies in Italy preparing to face this incoming wave of innovation? And what advantages are there for international firms interested in developing their business in the Italian manufacturing industry?

Italian manufacturing companies expect even greater technological transformation

Digital Transformation - First img

Interesting data has emerged from the 2022 survey conducted by Fòrema, with reference to two interrelated processes, namely digital and green transitions. Supporting the extent to which this scenario represents the future, also on a global level, the report The Rise of the Smarter, Swifter, Safer Production Employee‘, carried out by Ericsson IndustryLab, analyzed the ongoing transformation from which comes out a growing demand for greater productivity and efficiency.

Needless to say that automation technologies have enabled manufacturing to absorb the impact of the economic crisis generated by the Covid-19 pandemic.

In fact, 78% of Italian manufacturing companies declared their financial performance unchanged or even improved.

The research carried out by Assindustria‘s training organization, in detail, focused on how companies will change in the coming years, both in terms of activities and functions as well as organizational relations. According to the survey included in Fòrema’s study, 30% of companies, the vast majority of which are part of the manufacturing and engineering sectors, expect an increase in activities, while 17% expect a radical change in the company. Larger companies are expecting more radical transformations than small and medium-sized companies, in both quantitative and qualitative terms.

Digital Transformation and sustainability as major shifts

On the subject of Digital Transformation, 52% of the companies stated that they had already carried out training actions to adapt technical and behavioral skills in the digital sphere: this testifies to the fact that digitalization processes have therefore involved the majority of the companies surveyed, even if these paths mainly concern the design and management sectors and to a lesser extent the more operational profiles. On the issue of sustainability, on the other hand, less than half of the companies stated that they had implemented specific actions to equip themselves with skills for greater corporate sustainability: a topic on which further efforts are needed.

Digital Transformation - Green

How are Italian companies adapting to this speeding transformation?

In order to face a situation of continuous change, companies must focus on recruitment and the acquisition of new professional skills, such as hiring figures such as Chief Technology Officer-IT managers, and technicians capable of identifying the best technologies to apply to the products or services the company produces, but also Digital Manufacturing managers, i.e. profiles that know how to use innovations in production processes.

Above all, however, the focus is on figures capable of redesigning and planning production and the management of incoming and outgoing material flows on production lines: in this period of crisis in the cost of materials, these figures are fundamental for keeping the production cycle profitable.

Moreover, according to the research, ‘The Rise of the Smarter, Swifter, Safer Production Employee’ Italy is confirmed as one of the most advanced countries in terms of the use of ICT tools, with 48% of companies using at least three of the technologies considered, compared to 41% of the global average. Now more than ever, investing or expanding in Italy for international companies means a booming market for excellent business growth.

Navigating the Italian manufacturing sector with the right partner

There are a number of challenges that the Italian manufacturing sector faces in an environment still affected by the pandemic, such as international competition, the need for greater flexibility, and the challenge of increased job security. Furthermore, to keep up with the evolution of technology, companies are faced with the need to upgrade machinery and equipment, make processes more efficient to meet the need for greater sustainability and increase the resilience of supply chains. These challenges represent a fascinating path full of development opportunities for the Italian manufacturing industry.

However, navigating this promising market without a third-party expert can be risky. Our Italian teams can provide personalized offers and support you throughout your international expansion journey.

Book an appointment with our experts in Milan and Turin to know more.

Want to learn more?

Discover our most recent article on Italian companies and internationalization: Crédit Agricole Italia in Trento with Altios International to promote the companies internationalization

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