by Carlo M. Ferro
Herewhen these reflections will be published the race for the presidency of Confindustria will be concluded with the designation of Emanuele Orsini. The timing allows us to address the topic of priorities for businesses without going into the merits of candidates and programs, which are private matters of the members. I would identify: innovation, labor costs, training and productivity. The success of a manufacturing system that exports 45% of its production depends on innovation and competitiveness, which is the product of the cost of factors and their productivity.
On the cost front, it is the average hourly cost of labor that makes the difference: in Italy €29.8, compared to the EU average of €31.8. But the gap between member states weighs heavily – with Eastern countries between €9 and €13 – and, above all global markets, Europe’s gap towards Asia. In Italy, €1 of salary costs an additional 38 cents in contributions, placing our country in fifth place in the rankings of highest incidence of the tax wedge in Europe. For this reason – and for its social implications – I would place the structural reduction of the tax wedge at the top of the list of priorities. Together with the theme of productivity, considering the almost stationary trend in Italy of total factor productivity, measured in terms of value added per hour worked (Istat 1995-2024). This index improves when technological research and investments make production processes more efficient and development increases value added of product. Italy invests 1.45% of its GDP in research and development, 2/3 of the European average (2.2%), although our entrepreneurship makes up for it: it is the phenomenon of the bumblebee that flies despite the disproportion of its wings.
Self let’s look at the data in detail, the most significant gap is in labor productivity, while capital productivity has been recovering since 2014. On the one hand, the alarm raised by all production categories concerns the training gap between supply and demand for work, which is crucial for young generations. On the other hand, the positive results of industry 4.0 in the modernization of manufacturing processes (as demonstrated by the turnaround of capital productivity) should trigger “Enterprise 5.0”. A new phase of intervention extended to the management processes of companies, beyond manufacturing, extended to artificial intelligence, after big data and IoT, and which embraces SMEs to make them grow. Recognizing that Industry 4.0 was born on the initiative of Confindustria, in a honeymoon phase with the government, and with the commitment of its territorial network is the premise for a new phase. Good job to the new electto President of Confindustria!
