n° 1 - October 1995

 

 

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The purpose of the Club

I think that the basic reasons for the establishment of the Club of Industrial Districts are to be found in figures and geography: in figures because, even though statistics are often inaccurate, approximately 60.000 enterprises with 600.000 employees are rated to operate in the industrial districts of our Country, for an annual global turnover of over 120.000 billion lira, which contribute to the Italian industry GNP with 10% and which, in difficult conjuncture phases, prove to possess higher endurance compared to the industrial sectors' average; in geography because local enterprise systems are a common reality in our country, more intense in the North and the Centre, even though there are important presences in the South too.

Economic relevance and geographic spread of industrial districts have been neglected for long time, and the same can be said regarding the understanding of this particular production model that combines sector specialization and workforce training, highly qualified service to enterprises and modern industrial relations, entrepreneurial liveliness and cultural tradition, love for the territory and opening to the outside, rooting and innovation.

All this, in various tones and shades, is to be found in the industrial districts of our country, in north-west as well as in the Centre, in the oldest ones and the newly born ones and independently on the sector specialization.

Thinking about the things we have in common, about the opportunity of exchanging experiences, the importance of forming a conspicuous critical body, and the need of increasing the perception of districts, we came to the decision of establishing a continual communication network between the operators of local economic systems in our country.

The Club seemed to be the most agile and flexible form; President and seat will be changed every two year in order to directly involve people from all over the country.

The newsletter will be the means by which information and opinions will go round among the members. This first number contains the information about who we are and what we are doing.

Our goals are ambitious, yet we are sure we will achieve them; to this purpose, the contribution of ideas and experience from new member districts joining our Club will be determinant.

Enrico Botto Poala
President of the
Club of Industrial Districts

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District Outlines

The Club of Industrial Districts was formally established last November (1994).

According to its statute, members are class associations, Chambers of Commerce, Trade Unions and service centres operating in industrial districts; local organizations (boards, body, bureau) may participate only through local development agencies.

Its promoters deliberately decided not to create another 'institutional' association, but rather a system of relations among local forces. Therefore the strength and legitimisation of the Club will depend on the capability of networking resources and energies of the various districts.

Its goals consist of:

- creating a network among district operators in order to favour the exchange of information and experiences on common problems;

- acting as representatives to the government and the E.U.;

- enhancing the perception of the districts' role in the national economic system;

- promoting researches and studies on industrial districts.

 

Presently members of the Club are institutions from 12 industrial districts in which, with reference to typical sectors only, over 25.00 industrial enterprises with 200.000 employees operate.

This newsletter (the first of a series that will try to create the necessary esprit de corps to achieve the Club's goal) introduces the member districts.

 

Belluno

The establishment of the glasses industry in the province of Belluno is a typical example of an industrial district.

Since the first factory destined for industrial production opened in 1878, it has accumulated and consolidated progressively over the years all the characteristics typical of a district economy: density of settlements, a majority of small firms, intense inter-company relations both on a competitive and production processing level, deeply rooted social and cultural ties with the area.

Today the extent of the district corresponds to the territory of the whole province: Cadore, with its historical origins is still the area with the greatest industrial density, Agordino, site of the first firm to be listed in the world classification, Longaronese, Alpago, Feltrino.

The main figures for the district are as follows: 150 industrial firms with 7,000 employees; 600 cottage industries with 2,000 employees; a turnover of 2,000 billion which constitutes 85% of Italian production and records an export percentage of over 60%.

The principal qualitative factors of the district are: presence of the chief world leaders; productive specialisation of frames; predominance of metal frames, with consequent characteristics of micromechanical working.

 

The province of Belluno, entirely contained within the Alpine arc, has a surface area of 3,678 km2, that is, 20% of the Veneto region. Population density is 58.1 inhabitants/km2. Four fifths of the territory are agricultural and forest, one seventh is unproductive, 3% is covered with water and only the remaining 2% is occupied by factories, roads and infrastructures.

Such values highlight the unique geographical-environmental situation that has characterized and still characterizes human settlement and economic-industrial development. It has contributed to the forging of a specific "mountain civilisation" whose considerable development is based on two determining factors: Glasses and Dolomites.

Out of 212,000 inhabitants, 90,000 are employed of whom: approximately 4,000 in industry, 40,000 in trade and 46,000 in services.

 


Biella

The Province of Biella is a territory of 930 km2 situated in the north-east of Piedmont, a region in the north-west of Italy.

The capital town of the area, which comprises 83 municipalities with 190 thousand inhabitants, is Biella (48,000 inhabitants), one of the biggest and most highly qualified centres of wool industry in the world.

The territory is 38.6% mountains, 48.7% hilly and 12.7% plain.

With 87,000 people employed, the Biellese area has one of the highest rates of employment in Italy (45.3% compared with a national average of 42.4%), particularly worthy of note is the high rate of female employment (35 women out of 100 are employed compared with a national average of 25).

The unemployment rate stands at 5%, the national average being 12%.

The distribution of employment by sector sees 3.1% employed in agriculture, 54.4% in industry and 42.5% in other occupations.

The textile sector is structured as follows: 2,000 productive units, 28,000 employees, 6,500 billion turnover, 2,000 billion of exports.

The main markets are Germany (32%), France (15%), Japan (9%), Great Britain (8%) and the United States (5%).

The main products are fabrics for clothing and yarns for knitwear.

The following figures relate to the wool sector in the Biellese:

- 65% of national productive capacity of the worsted sector

- 63% of open -end rotors

- 47% of worsted spindles

- 11% of carded spindles

- 24% of looms

 

As for the textile machinery sector, where production is increasingly characterised by the automation of productive processes, 2,000 people are employed with a turnover of about 500 billion lira, of which 50% is from exports.

 

Carpi (Modena)

The district of Carpi is chiefly characterized by the production of knitwear and ready-made clothing.

The territory which makes up the district includes 5 municipalities situated in the north-west of the province of Modena: Carpi, Cavezzo, Concordia, Novi and San Possidonio.

The total extent of the area is over 275.4 km2 and numbers about 88,700 inhabitants, with an active population of 45,300 of whom 5.5% are employed in agriculture, 57.7% in industry and 36.8% in service industries with an unemployment rate of 5%.

The importance of business in the area has enabled the entire productive system to guarantee the participation of all sections of the population, in particular the female workforce.

The manufacturing industry in general is a particularly important part of the local productive system, and since the end of the Second World War, the textile/clothing sector has played a leading role.

Carpi constitutes the centre of a productive pole with a very high rate of specialisation (this is where 55.3% of the employees of the provincial textile/apparel sector operate and it is the site of 57.7 of the productive units) with an average incidence of employees in the textile-clothing sector compared with the manufacturing industry equal to 60.9%.

The district is characterised by its particular specialisation in the knitwear sectors (1,600 productive units and 6,400 employees) and ready-to-wear (850 firms and 4,750 employees) with a global turnover of approximately 2,.200 billion and an export share of 25%.

Besides the quantitative importance of production (which constitutes 6.5% of the national turnover of the sector) the local textile-clothing industry is noted for the originality of its organisation, for the structure system of small-size independent firms, and for the special network between firms producing finished garments and commissioners.

The second sector which forms part of the productive activity of the district is engineering which with more than 500 firms employs over 3,400 workers and whose chief production is characterised by machines for woodworking (which employs about 30% of the workers of the entire region and 12% nationally) agricultural machines and automatic machinery.

 

Carrara

The Apuan stone district of Versilia (identified as Carrara) extends into two regions, Liguria and Tuscany, and three provinces, La Spezia, Massa, Carrara and Lucca. The province of Massa Carrara is definitively the most involved as it includes both capital towns.

The territory is dominated by the presence of the Apuan Alps, very steep-sided mountains between 1,800 and 2,000 meters high, and by the Tyrrenian sea, with its well-known seaside resorts.

215 thousand people live in its municipalities, with an employment rate of 39.6%, slightly lower than the national average, while the unemployment rate is 16.3% with a large proportion of young people out of work. The reason for this is the recent deindustrialisation of the area between the two capital towns (Masssa and Carrara) and in particular the almost total disappearance of chemical, metallurgical and heavy engineering industries.

Declared "an area of rapid industrial decline" the local district leans increasingly on stone as the main source of its productive economy, while services and trade are on the increase.

After the ornamental stone sector, construction and naval shipyards, both industrial and for sport, are important.

The stone sector, of which Carrara is the undisputed world leader, employs 8,800 with 1,160 firms for the excavation, transformation and trade of materials from the area and from all over the world.

The average annual turnover amounts to about 2,400 billion, of which 50% is derived from exports (40% of the national total) 200 quarries are active with over 1,000 employed and 1,350,000 tons of blocks are excavated annually. The best known local material is White Carrara in all its varieties.

The originality of this raw material characterise the entire district and the area of Carrara in particular, to the advantage of exports.

The chief markets are the Far East with 29.2%I, the European Union with 23.7% and the Middle East with 19.9%.

Only three countries exceed 10% of total exports: Hong Kong (12.6%), United States (11.6%) and Germany (10.3%).

The sector s subsidiary to stone, excluding transport, provide employment for 1,800 in over 200 firms producing machines for excavation, cutting, polishing, finishing, cycle handling and tools. Also important is the back-up of specialised services for materials and production. Over 50% of their turnover, which exceeds 450 billion annually, is derived from exports and this is growing every year.

Once a year Carrara accommodates the International Fair of Marble and Services, the most important in the sector with 60,000 visitors and over 800 exhibitors from all over the world.

 

Como

The province of Como extends over a total surface of 1,288 km2 of which 858 km2 are mountains, 336 km2 hilly and only 93 km2 agricultural plain. It is situated in the north-east area of Lombardy, not far from the Swiss border.

Como, with its 85,731 inhabitants, is the capital town of the Larian province which comprises 163 municipalities for a total of 528,292 units.

The distribution of employment by sector registers only 1.14% employed in agriculture, 40.53% in industry and 58.33% in services.

The unemployment rate is approximately 4%.

Apart from tourism on the lake, the area is associated with the manufacture of silk yarn and other textile fibres.

At present the textile-clothing sector of Como consists of 2,750 firms which are mostly small and medium sized, and which provide employment for 28,950 employees.

The chief market outlets of the sector are: Germany (about 24%), France and the United States (14%), Great Britain (9%) and Japan (7%):

Besides this sector two others are of fundamental importance for the local economy: engineering and wood/furniture concentrated respectively in the eastern and southern areas of the province.

 

Empoli (Firenze)

The district of Empoli is a territory of about 340 km2 consisting of 6 municipalities and bordering on other industrial districts of Central Tuscany. Equidistant from Florence, Pisa and Siena, the Empolese is a strategic territory for all communications within Tuscany. The capital town of the area is Empoli, with about 44,000 inhabitants, and it is the productive and services centre of the district.

Employment rates are high as in every district: widespread female occupation (especially in the form of outwork) a low unemployment rate (below 7%), a high rate of activity.

In the last 10 years services have grown rapidly; today this sector, as regards the number employed (48.5%) has almost the same consistency as industry itself (50.8%).

The industrial history of the area has always included various productive sectors (glass, ceramics, nautical equipment) but its development is linked to the clothing sector and in particular to two specific products: rainwear and leatherwear.

The number of firms amounts to over 500 with about 6,000 employees, a turnover of 1,100 billion and exports of 350.

In the leatherwear sector the area represents about two thirds of the entire national production.

The principal export markets are Japan (24%), the European Economic Community (49%) and the U.S.A. (12%).

Also of considerable importance is the gift objects sector (ceramics and glass) and the chemical industry which employs 3,200.

 

Lecco

Lecco is situated at the southern end of the homonymous branch of Lake Como; it is 50 km from Milan in the north-east of Lombardy.

It is the capital town of the area and comprises 90 municipalities (299,795 inhabitants). Since 7 May 1995 it has been a province in its own right.

The district of Lecco specialises in mechanics and includes the Municipalities of the Province of Lecco plus several municipalities belonging to the province of Bergamo and Como, totalling 344,293 inhabitants.

The territory , which extends for 837 km2 consists of mountains and hills.

136,782 persons make up the active population.

The distribution of occupation by sector sees 0.2% employed in agriculture, 67.3% in industry and 32.5% in services. The unemployment rate is 7.3%.

The pillar of the economic system of Lecco - traditionally characterised by a sort of "monoculture" of iron, which has been consolidated over the centuries and developed with particular intensity from the XIX century onwards - today consists of a widespread industrial and cottage network, involving a large number of firms, mostly relatively small in size specialised in the engineering sector, electrical engineering and textile machinery, with production of components prevailing over finishing products. There are 3,631 engineering and assimilated firms totalling 37,583 employees.

The main market outlets are Europe, (especially Germany), the Americas and Asia.

Another sector worthy of note is construction, with 2,672 firms and 8,504 employees.

 

Pesaro

The province of Pesaro and Urbino extends over a territory of 2,893 km2., situated in the northern part of the Marches, a region of Central Italy.

The capital town of the area, numbering 67 municipalities with a total population of 335,979, is Pesaro (88,713 inhabitants) which represents one of the most important furniture making areas of the country.

The territory has no completely flat land and is classified as being 68% hilly and 32% mountainous.

The active population of the province is 144,716 working persons, with a rate of occupation of over 43% (the national average is 43,4%) with women constituting 32%. The unemployment rate of the province stands at 10.7%, compared with a national average of 12.2%.

The distribution by sector of occupation is the following: 6.7% are employed in agriculture, 41% in industry and 52.3% in services and public administration.

The economy of the Pesaro area has developed rapidly over the last 20 years particularly in the manufacturing sector and productive services sector.

The most important sector is represented by the furniture-making and furnishing system, which constitutes an industrial district of national and international relevance.

This area-system is structured as follows: about 500 productive units of an industrial type, integrated with over 700 cottage industries which, as well as dealing with the creation of finished products, act as "services" to the furniture making industry, producing parts and accessories for furnishing or covering certain phases of the productive cycle.

Those employed in the district (including workers producing machines for working the wood or glass and marble components for furniture, who represent 15% of the total) number 13,000 with a total turnover of approximately 2,450 billion and export turnover of 800 billion.

The main markets are situated in Common Market Europe (45%) the Middle East (30%), the United States (10%), South America and Eastern European Countries (10%) and Far East countries.

Therefore Pesaro represents an industrial area that boasts a very high concentration of furniture producers (it is only preceded by 4 or 5 provinces in Italy) and one that is in a position to offer a vast range of typologies, including every kind of furnishing.

Other sectors of considerable importance, apart from furniture are engineering, household articles in teflon and aluminium fixtures, textiles and clothing, and yachts in fibreglass plastic.

 

Prato

The industrial district of Prato extends over an area of 700 kms2 with a population of 300,000.

Here is to be found one of the biggest concentrations of textile industries in Europe. The local textile tradition dates back to the XII century. At the moment 44,000 are employed in the sector, representing 30% of the active population and 60% of those employed in industry.

The firms of Prato specialize in the production of:

- yarns for knitwear

- fabrics for clothing

- other textile articles (pile fabrics, spread fabrics, non-wovens) for the clothing, footwear and furnishing industries, for technical applications and for knitwear.

There are about 9,000 textile firms which cover all the phases of production, from spinning to fabric finishing. The district is situated in a catchment basin which is exploited by the factories for their production processes; the used water is purified by a network of central plants.

One of the strengths of the industrial system of Prato lies in its connections with international markets. The textile sector exports over half its production and has business relations with more than 100 countries.

Besides textiles there are also engineering firms in the area, and to a lesser extent, other sectors (plastics, publishing, chemicals).

Prato, situated a dozen kilometres from Florence, is a medium-size town (170,000 inhabitants) with a fine, well-preserved medieval centre. Its cultural life is animated by theatrical activities, museums, a university and prestigious research institutes. It has a good culinary tradition that uses the products from the surrounding hills, in particular oil and wine.

To the south-west of the city two large areas (of about 400 hectares) have been designed and partially built in order to accommodate new productive investments.

 

Valdinevole (Pistoia)

The Pistoiese shoemaking district consists of eight municipalities of the Valdinievole, one of the three geographical systems which constitute the province.

The focal point of this area as regards the shoemaking industry, also from a historical point of view - the earliest manufacturing dates back to the beginning of the century - is Monsummano: it is from this municipality that the shoe industry spread into the neighbouring areas with small-sized firms that were mainly cottage industries.

The district covers an area of about 172 kms2 representing 18% of the province, and has a population of 81,376 equal to 31% of the provincial total, with a density of 474 inhabitants per km2. 9,115 units operate locally (34% of those operating in the whole province) with an industrial density of 112 local units for every 1,000 inhabitants.

The area has a strong industrial vocation and this is confirmed by the number employed in industry which verges upon 50%.

The most widespread industry is shoemaking which, in spite of a serious crisis during the recent recession, can still count on a consistent productive structure: 609 local units (18% of the regional units and 3.75% of the national total). The shoemaking firms in the area are 70% cottage industries employing about 3,700 workers, the average size being approximately 6 workers per local unit.

The Pistoiese shoe industry has always been well introduced on international markets: in 1993 the volume of exports amounted to 223 billion lira (12% of the regional export of the sector) the markets being chiefly those of the EEC countries (60%) and U.S.A. (23%).

Many financial interventions are planned in support of the area: among these the opening of a technological centre intended to encourage the utilisation of computer processes like CAD, CAM and the use of a specific program of the European Community, FORCE, for the financing of professional training programmes.

 

Valsesia (Vercelli)

The valves and taps district of Valsesia extends for 800 km2 and is situated in the north-east of the province of Vercelli.

From a morphological point of view the area consists of a single valley, Valsesia, closed off at the northern end by the Monte Rosa massif, bounded on the east and west by mountains and hills and open towards the plain in the south.

This territory is characterized by a propensity to a tourist and rural economy in the upper valley whereas in the middle/lower valley a strong manufacturing vocation is evident.

The district consists of 31 municipalities totalling 40.500 inhabitants, over a third of whom live in Borgosesia, the main economic and administrative centre of the valley.

In the centre of the district the municipalities of Varallo, Quarona, Borgosesia, Serravalle and Valduggia are distinguished by their particularly high employment rates.

42% is the overall average, while the unemployment rate verges on 6%.

In the district there is a high concentration of small/medium-sized engineering companies producing valves, shutters and taps in general, representing 25% of the entire manufacturing sector.

Some important wool textile industrial complexes of international renown also operate in the area.

On account of its morphological complexity, farming is very limited, involving only 4% of the total workforce.

Services have greatly expanded (41%) characterized by firms belonging to traditional sectors.

As for manufacturing, the valves and taps sector is characterized by the presence of 220 local units with 2.300 employees.

The origin of such a strong presence and concentration dates back to 1400 with the first bell founders who operated in Valduggia, the "engineering" heart of the district with almost 100 firms and about 1.000 employees.

The turnover of the district, with regard to engineering only, is estimated to be approximately 700 billion, with an average export percentage (direct and indirect) of about 60%.

 

Valle Seriana (Bergamo)

The district of Valle Seriana comprises 20 municipalities in the north-eastern area of the province of Bergamo. Albino and Clusone are the most important ones.

Brief analysis of the prospects of this area:

The economic structure of the district confirms its strong manufacturing vocation, obviously correlated to the importance of the "textile system", where almost 28% of the posts in the whole province are concentrated.

In the district a higher rate of employment than the provincial average is recorded, owing to the higher rate of female employment. Conversely, the unemployment rate is slightly lower.

Levels of school attendance are slightly lower than the already low provincial average; this is more the case for males than females. The problem does not only concern classes with older students (where problems of upgrading arise) and previous attitudes but also the present day choices young people make, especially males.

The age structure of the population indicates a progressive decrease over the next few years in job opportunities (attitudes towards the job market being equal especially on the part of the female component) or at least drastic streamlining of the quantitative imbalances between demand and supply specifically as regards the younger generations.

The decrease in job opportunities could be due to people retiring later, more women working and the increasing number of immigrants: considerable alterations will be necessary on a social-cultural level, not to mention specific training and job opportunities.

Local employment opportunities tend to be in manufacturing. Services continue to develop but more slowly.

More than 37 employees out of 100 (compared with 33.8 on a provincial level) work independently (10,700 out of 17,500 workers). The large and growing number of people involved in business points out an increasing need for services in support of the small entrepreneur.
 

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News and events

Meeting on industrial politics
(November 14)

The Club is not one year old yet and, for the moment, its activity is mainly project-making. The Council, together with a group of experts, is working at the drawing up of a "Manifesto on industrial politics for districts". This document, which will be officially introduced during a meeting on November 14 in Carpi, represents the Club's first formal appointment.

The voice of the club

One of the goals of the Club is to highlight the role played by industrial districts in the national economic system. In the past months the Club took part in the following meetings:

- Unioncamere, Chamber of Commerce of Vicenza
From protagonists to leaders: enterprises and institutions in the changing industrial districts
Vicenza, April 27, 1995

- OCSE
Local Systems of Small Firms and Job Creation
Paris, _ June 1995

- Censis, Cnel
The new local politics. V° National Forum of Local Economies.
Roma, July 13, 1995

 

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Copyright©1995 by Club dei Distretti Industriali