Treviso, 15 March 2011

Exports in Treviso resumed growth in 2010 (€ 9.9 million, +10.7% over the previous year), after a significant decrease in 2009 over 2008.

Pre-crisis sales levels would need € 1 billion more, but recovery over 2008 seems partially or totally achieved in some sectors. This is the case for machinery and rubber and plastics products, together with food products and beverages, which keep on growing continuously.

Moreover, the 2010 financial summary shows that imports recovered: foreign purchases rose by 22.7% over the previous year reaching over € 6 billion, higher than € 5.8 billion in 2008. The highest growth involved metallurgical products, yarns, electronic components, wood items and plastic products.

President Tognana remarks that:«Rebounds in intermediate goods sectors mirror downturns in 2009: these results seem to confirm that supply chains in Treviso have resumed their "flow" towards final markets. For this reason, inputs should be refilled». «Imports in some sectors (electronics, chemistry, metalwork fabrication and clothing and textiles) rose over 2008 levels. Subcontracting chains might need to be globally redesigned».

As for the most involved sectors in exports from Treviso, a remarkable recovery was observed in the machinery: after a 22.7% decrease in the previous year, it now grows by 27.8% and reaches € 1,854 million worth of foreign sales, which is only 25 million less than in 2008.

Growth in this sector was strongly influenced by trade moving towards non-EU countries: they now count for 61% of sales, up from 50% one year ago. Exports towards China showed an exponential growth (+340% compared to 2008, plus further 3-digit growth towards Taiwan). Recovery was also observed towards the USA (+41%), Turkey (+60%) and Russia (+8.6%). 

On the other hand, the furniture sector experienced smaller increases, even though it still ranks second in export from Treviso: 2010 closes with a 8.2% increase over the previous year, but it's still € 100 million lower than 2008 sales. The good news is that sales in Germany and France resumed their growth compared to two years ago as well. As for Spain, after a major setback exports go back to pre-crisis levels, while exports to the USA remain far from 2009 levels with a 11% increase. Decreases were registered in Russia (-4.4%). 

The fashion system registered uncommon trends, as usual, also due to foreign sales of items produced in plants abroad ("foreign-to-foreign" sales) and subcontracting abroad: footwear increased by 6.6%, ranking third (imports grew more than proportionally: +20%). Clothing experienced a structural decrease as for exports (from € 1 billion worth of exports in 2008 to € 650 million in 2010), which have been overcome by imports (mainly towards China, Tunisia and Romania) that almost reached € 800 million (+2.5% over 2009). Lastly, imports achieved significant results as for “yarns and fabrics”:  +27,3% over 2009 (from € 199 to 253 million): not only from China, Turkey and India (first, third and fourth supply markets respectively), but also from Germany (+20.8%). 

The domestic appliances sector (+7.5% over 2009) is recovering mainly thanks to Switzerland, Australia and Russia (as regards the first ten). However, the sector would need € 125 million more in order to get back to pre-crisis export levels. Metalwork items are still suffering decreases: -6.6% over 2009, -15% over 2008 (from € 650 to 550 million). As for target markets, flows are positive for what concerns some Eastern countries: Romania +51.6%, Slovakia +42.4% and Slovenia +52%. Sales in Spain grew as well, resuming 2008 levels. 

Electrical equipment grew by 20% over 2009 (not considering domestic appliances): it includes lighting items, generators and electrical cabling. Remarkable growth towards substantial markets like Germany (+10.2%), France (+70.9%) and the UK (+48.9%). 

The rubber and plastics sector is experiencing a full recovery compared to 2008 as well: in this case, the most distinguished trends have been registered in evolved EU markets, first of all Germany (+31% compared to 2008).

The food and beverages industry was not particularly affected by the crisis, but we should make some remarks. Food exports grew moderately (+4,4% over 2009), balancing slight decreases in Germany (¬-3,2%) and France (-4,2%). In particular, some trends must be underlined: Austria +19.8%, the Netherlands +12.3% and Russia +41.7%.

Exports of beverages - obviously including wine - registered much better trends: +12.8% over 2009 and +17.6% over 2008, with sales growing from € 245 to 288 million. In this sector, the first target market is Germany (sales at nearly € 100 million). Interesting performances in the USA (+29.5% over 2009, +45.4% over 2008), Canada (+48.9% in the last 12 months), the UK (+15.3%) and Austria (+30.7%).

President Tognana comments: «A first balance can be drawn concerning the international competitiveness of the manufacturing industry in Treviso, and it is a good balance. Exports moved to non-EU countries have been significant (from 32.9% in 2009 to 36.4% in 2010): of course, this means market coverage over the BRIC countries (especially China, Russia and Brasil) but also resuming significant growth in the USA (+27.5%). Furthermore, increases affected the European markets - our "traditional" trade partners - as well, although with different pace according to sectors. Lastly, transnational production networks seem to grow more considerable and intensify. Through these networks, cost advantages can be achieved for sure, and moreover, they are more and more functional for local leader companies, to get in touch with new skills. It must be observed that all these dynamics were born within very fragile global contexts, if we consider - also from an economic perspective - recent happenings in North African countries and the effects of the earthquake in Japan, even if they could not be calculated yet».

Consult the table: Foreign trade for product category – year 2010 

GRAPHS:
Imports and exports in the province of Treviso. Comparison by year: 2008, 2009, 2010