ECONOMIC SITUATION AND TRENDS IN ITALIAN EXPORTS
With a gross domestic product of 4.121 trillion euros in 2023, Germany is the third largest economy in the world after the United States and China, making it the largest economy in Europe. In particular, the export of motor vehicles and spare parts, as well as chemical products, make Germany the third largest exporting nation in the world. The service sector contributes the largest share to the country’s GDP, accounting for 70% (Source: KPMG).
In recent years, Italian exports to Germany have shown variable trends:
In 2020, it is important to remember, was the year of the pandemic.
SECTORS IN DIFFICULTY
Some industrial sectors are facing significant challenges:
- Chemical Industry: Chemical production has seen a reduction in capacity utilization to 75.1%, mainly due to rising energy costs and global logistical difficulties.
- Mechanical and Electronic Industries: These sectors have recorded a decrease in production capacity and orders, with a 4.9% decline in the mechanical industry compared to the previous year.
- Construction: Rising material costs and interest rates have discouraged new investments, reducing the number of building permits to the lowest levels since 2012.
SECTORS PERFORMING BETTER
Despite the general difficulties, some sectors are showing signs of growth:
- Renewable Energy and Sustainability: Energy transition is a priority in Germany, with significant investments in solar, wind, and energy storage solutions by companies such as BayWa and E.ON.
- Electric Vehicles: The automotive sector, crucial to the country’s economy, is undergoing significant transformation. The shift towards electric vehicles has created a need to quickly adapt to new technologies. Volkswagen, for example, is investing billions to accelerate electric vehicle production but faces competition from Chinese manufacturers and the need to innovate rapidly. Moreover, VW is also collaborating with Chinese manufacturers like XPENG.
- Artificial Intelligence and Automation: Sectors such as IT and industrial automation are seeing growing investments and innovations, with companies like Bechtle at the forefront.
PROSPECTS AND ADVICE
The prospects for the German market remain complex but not without opportunities. For Italian SMEs, it is crucial to adopt practical and realistic strategies to address challenges and leverage emerging opportunities:
- Innovation and Investment in Technology: SMEs need to invest in new technologies and sustainable solutions to remain competitive. The adoption of technologies such as artificial intelligence, automation, and renewable energy can open new market niches.
- Market Diversification: Exploring new markets and diversifying customers can help mitigate the risks associated with the volatility of the German market. SMEs should consider expanding into other EU countries and emerging markets.
- Focus on Market Niches: SMEs can benefit from focusing on specific market niches where they can offer unique and high-quality products or services. The small size can be an advantage in this case.
It is therefore essential to be informed—more than ever—about market developments. Knowing how to find solutions and adapt quickly is also crucial. In this case, small size and our tradition of “inventors” can play a fundamental role.