The results of the economic survey and the Focus “Companies between investments and human capital The opinions of entrepreneurs of Confindustria Veneto Est”.
The survey was carried out by the Association, in collaboration with Fondazione Nord Est, between April and May 2024 on a sample of 806 manufacturing and service companies in the provinces of Padua, Treviso, Venice and Rovigo, which detects their investment and hiring intentions in the current year.
Confindustria Veneto Est: Investments Down in 2024
The chiaroscuro macroeconomic scenario and the first months of 2024 characterised by a manufacturing production still contracting (-2.2% trend in the first quarter, no signs of a turning point in the short term), demand on stand-by for several (too many) months, awaiting the new provisions for Industry 5.0, is dampening investments by companies in Eastern Veneto.
Despite this foreseeable slowdown, the propensity to invest in the next six months concerns 72.8% of companies in Padua, Treviso, Venice and Rovigo (down from 79.4% in the same period in 2023). But the underlying data is stability (57.8%); almost three out of ten companies (27.2%), with a greater incidence among small ones (30.1%), intend to reduce investments, compared to the levels of the previous year; 15% instead will increase them.
In quantitative terms, during 2024, 40.8% of entrepreneurs plan to invest between 1 and 2% of their turnover; approximately three in ten (28.9%) a share between 3-5%; 16% (from 25% in 2023) more than 5% of revenues (4.6% more than 10). Innovation and human capital are the drivers for investments: among those who plan to invest, almost eight entrepreneurs out of ten (78.4%) will do so in training to update or develop new skills in the company; 67.1% will invest in technologies and IT networks, 63.9% in corporate welfare, 61.0% in plants and machinery.
The following, with shares above 50% (multiple answers were possible), are investments in digitalisation (59.3%), human capital (58.9%), and environmental protection (51.5%).
Rates still high
The still high rates (after the ECB’s reduction of 0.25%) and the restrictive financing conditions are inducing companies to reduce the demand for bank credit for investments.
The majority share (55.7%), concentrated in medium-large companies, has made greater use of self-financing, compensating for the lower leverage with liquidity reserves, in order not to require new financing at higher costs. 12.7% has requested medium-long term bank financing; 6.3% short term (4.1% leasing; just 2.6% public incentives).
Furthermore, the demand for labor by companies remains lively. Net of replacements due to retirement, 54.2% plan to hire new people during 2024 (71.1% among large companies), to provide the company with the skills necessary for an overall renewal (26.4%), to support growth in demand (24.1%), support technological and organizational changes (21.9%) or expansion into new markets (12.8%).
