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Bilateral relations and investment opportunities

Due to the severe economic crisis, Italian exports towards the United States, while continuing to be sizeable and quite relevant ($26 billion in 2009), have reached a standstill compared to 2008 level (-26%). In the rankings of the 20 main suppliers for the United States in 2009, Italy is at the 12th place.

With regards to categories, the mechanical sector continues to be our main source of exports, while fashion, house/furnishing and petrochemical industries are the ones suffering the most from the economic crisis. The importation of Italian goods by the United States has concentrated on the following sectors: mechanical: 18,6% , fashion: 13,1 %, agri-food and wine: 10,8% , petrochemical: 10,7% , pharmaceutical: 6,6% , house/furnishing: 4,6% , other: 23,1%.

In terms of investment, the crisis actually presents a valuable opportunity for our enterprises, as they can now more easily access a very competitive market. American centrality in the world economy has been highlighted by the global recession itself. The United States – a country with a national income of over $14,250 billion and an internal market composed of 300 million people, with an average income of $47,000 – represent a strategically relevant market, due to their size, their centrality in the globalized economic system, and their capacity to set an example for the rest of the world, in terms of consumption models.

During the course of the last two years, several Italian enterprises have taken the opportunity to invest in America. Among these are: Finmeccanica, which has acquired DRS Technology, a leading company specialized in the provision of services and integrated electronic products for the defense industry, and Fincantieri, which has acquired Manitowoc Marine Group (MMG), the naval construction section of the Manitowoc conglomerate, based on lake Michigan, with the objective of accessing the US contractor market for naval defense. Further investments have been made by: Mediaset, Italcementi, Bracco, Brembo, Pirelli, Ferretti, Colavit, Prysmian Cavi, Sogefi, Enel, Eni.

Eight Reasons To Invest In Italy

1. A strategic position in Europe and in the Mediterranean Sea

By virtue of its strategic location in the heart of the Mediterranean Sea, Italy is the main thoroughfare linking southern Europe to northern and central Europe by land, sea and air. It provides a gateway affording easy access to 500 million consumers across the European Union, and a further 270 million in Northern Africa and the Middle East.

2. A wide network of infrastructures

Companies deciding to invest in Italy can rely on a wide infrastructure network. Italian roads cover approximately 1 million km, making them the second longest network in the EU (25), after France. The network as a whole includes about 6,500 km of motorways, representing 13.7% of all motorways in the EU (25). The Italian rail network has 16,300 km of track, making it the fifth longest in the EU (25). With an evolved system of international ports, logistics platforms and interports, Italy ranks as the second most important country in Europe for maritime freight, and the second also for passenger transport: 263 ports scattered along 8,122 km of coastline, 49 million passengers per year, port traffic of 512 million tons in 2007.

3. A friendly business environment

Following a thorough reform of Italian corporate law in 2003, the legal framework for companies can now be considered one of the most modern and dynamic in Europe. During the past years, Italy has been implementing a broad reform of the Italian corporate tax system and the corporate income tax rate is now reduced to 27,5%.

4. Countless opportunities for expanding companies

Italy is ranked 6th among OECD countries and 4th among European countries for Gross Domestic Product with a value of more than 1.7 trillion in 2008. With a potential market of almost 60 million consumers, for innovative services (more than 25 million internet users) and products, the Italian market offers countless opportunities to businesses in expansion in strategic sectors: logistics, ICT, life sciences, renewable energies, tourism.

5. Facilities and support for foreign companies

Invitalia comprises a single and reliable national reference point for foreign investors eager to expand or to set up a new business in Italy by providing a free of charge spectrum of services for all stages of the investment process: updated detailed information on the business environment, investment opportunities in specific sectors and business advisory services throughout the implementation process.

6. Know-how system

Innovation in Italy is driven by an extensive network of high-quality universities and public and private institutions and by a modern network of science and technological parks, which ensure that research is widely integrated into industrial processes.
Italy has a long and acclaimed tradition of excellence in many fields, including medicine, biomedical technology, instrumental and precision engineering, robotics, micro-electronics, ICT, aerospace, new materials and nanotechnology.

The quality of the country’s research is borne out by its high level of scientific output, its constantly rising expenditure on R&D, its high productivity and high level of internationalisation.

7. High qualified human resources

Companies investing in Italy can rely on an average of 300,000 graduates per year (Source: Minister of University and Research).
A survey conducted by Ipsos Explorer in February 2008 of 60 multinational companies operating in Italy, highlights that top foreign multinationals located in Italy benefit from sectorspecific technical and managerial skills and patents/know-how (55%) as well as the capacity to set trends in different industries, such as fashion and design (53%).

8. Quality of life and lifestyle

Italy ranks sixth as the world's top country brand in the Country Brand Index 2009, the international survey of the image of more than 40 countries in the world. Italy ranks in top position in the following categories: cusine, art and people.

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