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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

HR regulations change in Poland

After several tax changes for 2023, Poland updates HR regulations as well.

Business trips

There will be a new per diem rate for business trips as of 1 January 2023. As a consequence, the lump sums for transport travel expenses and for overnight stays will also change.

  • a per diem for a business trip – PLN 45
  • lump sum to cover the costs of travelling by public transport – PLN 9
  • lump sum for an overnight stay – PLN 67.5
futuristic business people expo concept

Employee Capital Plans

If an employee does not wish to save in a PPK, then they must, once again, submit a written declaration resigning from the scheme to the employer. If the employee does not make such a declaration, the employer will have to start making contributions for that employee from April 1st, 2023.

Labour Law (should take effect in Q1 2023)

  • The concept of remote working – will be agreed upon between the employer and the employee and included in the remote working regulations
  • Legal grounds for employers to carry out preventive checks for the presence of alcohol or substances acting similarly to alcohol in the bodies of their employees
  • Measures enabling greater use of flexible working arrangements
  • Changes to parental leave and maternity benefits
  • New rules on paternity leave
  • New carer’s leave and leave of absence for urgent family reasons

For more content about reforms in Poland: click here

What to know about Poland in 2023

Poland is one of Europe’s most attractive locations for overseas companies to set up a business (economic stability, a well-educated and diverse workforce, favorable location at the heart of Europe)

Economic Outlook

Economic growth is expected to decelerate to 1.6% in 2023, due to:
    • High inflation – after peaking at the beginning of 2023 at almost 19%, inflation is projected to decelerate to 4.3% towards the end of 2024
    • Monetary policy tightening
    • Negative confidence effects related to the war in Ukraine
    • Slowing demand in key trading partners

Supply-side disruptions, high input costs, and uncertainty related to the war in Ukraine can affect private investments.

The National Recovery and Resilience Plan is expected to support public investment.

Higher energy and food prices can weigh on household demand and can affect heavily poorer segments, who devote 50% of their monthly spending to food and energy.

The general government deficit is expected to increase to 5.5% of GDP in 2023 (5.2% of GDP in 2024)

poland flag on a mat in the wind and blue sky

Minimum wage growth is expected to be outstripped by inflationary pressures, leading to a decline in the real minimum wage in 2022, which will be moderated by the phased adjustment of the minimum wage in 2023 up to 3 490,00PLN from January 1st and up to 3600,00PLN (probable) from July 1st, 2023.

Poland avoids recession but may see bumpy road ahead.

Taxes in Poland

Regulatory changes introduced over the past 12 months are designed to simplify and modernize the Polish tax and corporate compliance regimes.

Poland has implemented significant reforms in its tax system and corporate compliance regime over the last few years:

  • Mandatory disclosure rules are stricter in Poland than across the EU, and cover internal transactions over a certain value as well as those that cross-borders

  • Environmental obligations in Poland follow EU regulations but are generally stricter and require specific registration and mandatory reporting to Polish authorities

  • Most official company applications and returns can now be submitted electronically, but they must be signed using a qualified certificate that meets the EU’s Electronic Identification, Authentication, and Trust Services (eIDAS) regulations

  • In 2016 Poland introduced its Standard Audit File for Tax (SAF-T) system known as JPK. This incorporated seven regulated JPK structures, of which two, JPK_VAT and JPK_FA, were relevant for VAT. The requirement for monthly submissions of JPK_VAT, was extended to all taxpayers on 1 January 2018. JPK_VAT was combined with the VAT return during 2020 and the consolidated JPK_V7M/K is submitted per the frequency of the VAT Return (monthly or quarterly). The remaining six JPK structures are submitted upon request of the tax authority in event of an audit.

Improvement in the area of digitalization for both companies and individuals – especially– some are taking time to work through the system and have increased the complexity of doing business in Poland.

All above makes it even more important for overseas companies and seek expert guidance when incorporating or doing business in Poland.

Even though changes work through the system and things are improving on an almost daily basis, but the Polish tax and regulatory environment remains still highly complex.

Tax changes 2023 in Poland:

Corporate Income Tax:

  • Minimum income tax – came into force in 2022, but have been suspended until December 31 2023, giving taxpayers another year to prepare for their application; profitability ratio increased from 1% to 2%; the formula used to calculate the tax base has been adjusted.
  • From 1 January 2023, social contributions resulting from the employment relationship in the part financed by the contribution payer, contributions to the Solidarity Fund, the Labor Fund and the Guaranteed Employee Benefits Fund will be classified as tax costs in the month for which they are required, but only if in which they will be paid within the time limit resulting from separate regulations.
  • Changes to the method of charging debt financing costs into tax-deductible costs – exclusion relates to an amount exceeding one of the two: PLN 3 million or 30% of EBITDA, yet not the sum thereof
  • Amendments to and clarification of provisions on profit shifting (costs incurred directly or indirectly to the related entity outside of Poland) – introduction of provisions on taxable base, changes to the method of establishing preferential taxation

Value Added Tax:

  • From January 1, 2023, basic VAT rates will apply again, ranging from 8 to 23% for individual products (termination of the so-called anti-inflation shields, which will expire on December 31, 2022).
  • The VAT rates will again cover, among others: fertilizers, plant protection products and energy carriers such as natural gas, electricity and system heat.
  • The exception will be the extension of the anti-inflation shield for food, which will most likely be maintained by the government. In 2023, or at least for part of it (until mid-year), the VAT rate for food products will still be 0%.
  • From January 1, 2023, new category of VAT payers will be introduced to the VAT Act – VAT Group – it means a group of entities related financially, economically and organizationally, registered as a VAT payer.
  • Electronic invoicing, along with real-time tax submission, will become compulsory in Poland from 1 January 2024.

Transfer Pricing:

The key amendment repeals the requirement to follow the arm’s length principle and the documentation obligation for indirect “tax haven” transactions:

  • PLN 500 thousand (base threshold)
  • PLN 2.5 million (for financial transactions)

Withholding Tax:

The main purpose behind amending withholding tax (WHT) provisions is to relax the rules for tax collection – commonly referred to as the pay & refund mechanism – or make it more feasible

Other changes in tax law that are worth paying attention to:

  • Simplification of the relief for “bad debts” – no attachment for declaration submission required – change from January 1, 2023;
  • Simplification of the procedure for refunding tax on income from buildings;
  • CIT exemption of income of social enterprises;
  • Changes in SLIM VAT 3 – probably change from July 1, 2023;
  • The obligation to record turnover by car washes, including self-service ones.

ALTIOS Poland monitores tax law regulations in Poland and will inform you about the tax changes related to your specicfic business activity.

More content about Poland: click here

The Automotive Sector in Spain

Key Factors

We have broken down the essential information to help you understand the impact of automotive on the Spanish economy.

  • In the last 5 years, Spain was the 2nd most preferred European destination for multinationals for new automotive projects.
  • Spain is the 2nd largest vehicle manufacturer in Europe and ranked 9th worldwide in 2021.
  • The automotive sector provides nearly 2 million jobs throughout the country, being an important generator of employment in many regions, beyond the big cities.
  • The turnover of the automotive industry represents 10% of the Spanish GDP.
  • The automotive industry is responsible for 18% of Spain’s total exports.
  • Spain’s most popular export destinations for this sectors are the UE, Turkey, Morocco, Egypt, and the U.S.

The Automotive Sector in Spain: Geographic Location

The success of Spain’s automotive industry export is also due to its geographical distribution on the country:

  • Spain hosts 17 car production plants, 15 technology centres, and 10 automotive clusters.
  • The automotive sector is well developped in Spain’s main cities: Madrid, Barcelona, Balencia, Zaragorza, Sevilla, Pamplona, Avila, Valladolid, Palencia, Vigo, Santander, Vitoria.

Want to know more about other Spanish sectors? Please check out Foreign Direct Investment in Spain, or visit the ALTIOS Spain website.

spain infographic automotive sector

Here you can find an infographic on the automotive sector in Spain. Read the article below to have a larger overview of this Spanish industry.

For more information, please contact us.

Here is an infographic on the Food and Beverage industry in Canada. It gives you an overview of the Canadian market, for more information, please contact us.

infographic food and beverage industry in canada

Want to know more about other Canadian industries? Please check out The Transportation Industry in Canada, or visit the Altios Canada website.

Here is an infographic on the Transportation industry in Canada. It gives you an overview of the Canadian market, for more information, please contact us.

infrographic on the transportation industry in canada

Want to know more about other Canadian industries? Please check out The Food and Beverage Industry in Canada, or visit the Altios Canada website.

Hong Kong: new business perspective

...as world's strictest pandemic rules are lifted.

October 27th, 2022

10:00 – 11:00 (MEZ).

Good news. Business travel to Hong Kong is about to get a whole lot easier. Since September 26th, the hotel quarantine has been lifted. Business activities in Hong Kong are expected to return to normal soon. Foreign investors also see this as a major step towards the Chinese borders also being reopened in the near future.

What does this mean for your business in Hong Kong and China? It may be time to rethink your China strategy.

Update your knowledge of the Chinese market and use this seminar as an impetus to review and, if necessary, adapt or even completely change your local sales approach.

Target group: Market entrants, but mainly companies that have been active in China for many years.

Event language: English

Agenda

This webinar includes :

10:00 – Breaking news from Hong Kong with possible implications for future business in Hong Kong/China

10:05 – General Business Outlook for 2022

10:10 – Hong Kong’s perspective as a leading Global Business Hub

10:25 – Questions and Answers

Experts

Zoé Zhu

Zoe-Linlin ZHU is the Business & Investment Director of ALTIOS China.

She has more than 10 years of professional experience in multinational corporations.

Before joining ALTIOS, Zoe Linlin ZHU was mainly responsible for sourcing/production.

During the 3 years she ran her own consulting firm, she assisted international companies in handling various projects in China.

Her deep understanding of running a business helped her a lot in managing international projects and negotiating with different people and cultures in the future.

ZHU graduated in “Communication, Entrepreneurship and Business Development” from Lyon-III University and Institut Commercial Lyonnais in France.

Maja Kovačević Coupé

Maja Kovačević Coupé is a Business Development and Account Manager at Altios Hong Kong.

She has spent almost 15 years first studying, then working in Mainland China and Hong Kong.

Maja Kovačević Coupé has a solid knowledge and understanding of Chinese business etiquette and culture.

For the last few years, Maja has been closely following the situation in Hong Kong and its business environment. She would like to share recent evolutions and highlight why Hong Kong remains an important bridge between East and West.

Registration

To better plan the webinar, please register no later than October 26th, 2022. Register here.

The participation is free of charge.

January 2022

Altios, accompanied by Delta Electronics Singapore and UOB, is organizing a webinar on the impact of Agritech beyong Singapore.


Click on the link below to watch the replay of this webinar: https://attendee.gotowebinar.com/recording/5226567426062605315


Governments around the world have realized the importance of creating sustainable food sources internally. Technology & innovation shall be the main driver.

Join us for a webinar & fireside chat with the industry experts on the landscape of Agritech beyond Singapore, support in market connectivity for your regional expansion and a case study on integrating technology into sustainable farming

Agenda :

4:00 p.m – Landscape of Agritech in the region, Altios
4:10 p.m – Drivers of transformation in Asia food & agriculture sector, UOB
4:20 p.m – Case study on smart plant & building automation solution, Delta Electronics Singapore
4:30 p.m – Fireside Chat
4:45 p.m – Q&A

The webinar took place on January 20th, 2022 from 4:00 to 5:00 p.m.

Welcoming:

20 years of BRICS: Are Brazil, Russia, India, China and South Africa still driving world economic growth?

This year we are celebrating the 20th anniversary of the BRICS idea. On this anniversary we discuss with our experts who lived and worked in these emerging markets whether BRICS has fulfil the expectations set in the different countries.

Twenty years ago the BRIC countries were highlighted as the new centres of international growth for the next 50 years, forecasting them to outpace developed countries for growth and suggesting a global economic shift to incorporate these fast-growth countries.

Over the next two decades, BRIC became a political movement and expanded to include more emerging markets and developing countries. Making emerging markets ever more important for the global economy. Without a doubt, spotlighting a select group of emerging economies has influenced investors and companies to look at global expansion in a different way for this century.

By 2019 the combined GDP of BRICS formed 55% of the GDP of the other G6. Predictions for each country for their place in the expanded global market have played out to some extent or other – Brazil as a food producer, Russia as a key energy exporter, India as key in the IT fields, and China as a global factory becoming the leader in digital transformation. It is China that has outperformed forecasts, while India’s growth has been less smooth than predicted, and Brazil and Russia still have not lost their dependence on raw materials and the global commodities cycles. Meantime the demographic projections have been more than realised with 3 billion of the world’s population in just those 4 countries which again highlighted the potential in many more emerging markets.

Twenty years on every company who has interests in expanding outside their home country should be active in these markets to some extent, and in all cases, M+V Altios can help. Altios has been in China for 22 years and M+V has 20 years of experience in India. We have 15 years of experience in Brazil and a long history in Russia. BRIC staff make up 50% of our international teams and over 40% of our revenues. BRICS will remain a very big part of our strategy and we look forward to helping you there.

To read our White Paper dedicated to BRICS

Altios, in partnership with Crédit Agricole, is organizing a webinar and individual meetings for Polish companies interested in the Indian market.

August 2021

For many years, India has been perceived as one of the most promising global markets – in part due to its 1.4 billion-strong population, high-growth economy, and political stability.

Recent forecasts show that India is quickly recovering from the economic crisis of 2020. The question arises whether it is the right moment to do business with the world’s largest democracy.

Experts from ALTIOS and Crédit Agricole will discuss the specificities of the Indian market and how you can take advantage of them to expand or set up in this prospective market!
A company that successfully launched operations in India will also share its experience.

Key themes of discussion:

  • Macroeconomics/Business outlook
  • Analysis of key factors for market entrance/expansion in India
  • How to search for the best partner or the ideal business developer
  • Presence and solutions of Crédit Agricole in India

Are you interested in the Indian market and want some specific advice?

Do not hesitate to register for our B2B meeting. Our experts will provide you with all the information you are looking for!

The webinar will be held on August 26th, 2021 from 10:30 to 11:45 a.m.
All subjects will be presented in English.

Welcoming:

  • Sophie WIEVIORKA, Asia Economist, Group Economic Research, Crédit Agricole S.A.
  • Klaus MAIER, Altios Group Managing Partner
  • Madhav RAINA-THAPAN, VP Business Development, Altios India
  • Shishir PUNDLIK, Executive Director and HeadMNC Coverage, North & West India Crédit Agricole Corporate & Investment Bank India

Testimonials from successful companies in Poland:

▶️ You can either register to the webinar or a B2B meeting alone, or to both these events: Register now

Webinar Organizers: Altios Polska Sp. z o.o., Altios International and Credit Agricole Bank Polska S.A., are your personal data controllers and will process data to conduct the webinar and B2B meetings.

Detailed information regarding the processing of personal data by Credit Agricole Bank Polska S.A. is available on:

https://www.credit-agricole.pl/rodo/corporate-clients

Detailed information regarding the processing of personal data by Altios Polska Sp. z o.o. and Altios International is available on: https://altios.com/legal-mentions/