Download Veneto Economy

Veneto Economy
The Veneto economy has become an international example, to the point that people talk
of the "the Veneto case" to refer to the particular model of economy growth that has
developed in this region of north-eastern Italy.
Since 1982, the region's GDP (Gross Domestic Product) had kept up a trend of
uninterrupted growth achieving, from 1993 to 1999, one of the most relevant levels in the
whole Europe. Veneto has recorded significantly larger and larger percentages on
foreign markets.
This economy had the features of a balanced and homogeneous growth, involving
sectors, from agriculture to manufacturing, from artisan trades to commerce and services,
even the most advanced.
Moreover, the Veneto region takes top marks for its tourist industry, too: with 11 million
arrivals and 53 million days of attendance , it holds the national record for this sector.
It is also the Italian region that has the lowest unemployment rate even in the recent
difficult economic times.
The Veneto production system is presented as an economic reality, which combines
elements of innovation and modernisation with more traditional features and values.
The fundamental factors that characterize the "Veneto model" can be summarized as
follows:
a. small to medium-sized enterprises;
b. the coexistence of traditional products with technologically advanced activities;
c. internationalization of markets
Principal production sectors
The structure of the Veneto economy is represented by the small and medium-sized
enterprises which, form a widespread and capillary web of business interests all over the
territory (there are 446,000 business units) characterized by great flexibility and
remarkable speed of initiative and response to the demands expressed by the world
markets.
There is a vast number of production sectors, which stand out for their high degree of
diversification and specialization. These include:
 the clothing, textile and footwear sector, almost a synonym for goods "made in
Italy" the world over;
 the metal-engineering sector, which is the most important in terms of the number
of companies and employees, and which has continued to expand so that over
24,000 firms are now involved. Within this sector, the electromechanical,
metalworking, machine-tool manufacturing and installation, and precision
machining fields are particularly important.
 The woodworking and furniture sector, which includes 13,000 enterprises,
represents a sector of considerable importance even on a national scale.
Small and medium-sized Veneto enterprises have also specialized in the production of
machinery and technologies for the processing of marble and granite, the textile industry,
the leather tanning sector, the building industry, wood processing, and the heating and
air-conditioning sector.
The original agricultural vocation of this region of Italy has succeeded in renewing and
moderinizing its methods.
One strong point of Veneto agriculture is represented by the winemaking sector, which
excels on the national scene both in the overall quantity of its production, and in the
quality of its end-product, which takes a share of over 20% of the nation's wine
production.
In tune with its economic progress, recent years have also seen great developments in its
services sector, which now ensures valid support for the vitality of the production system
in the field of financial credit, information system, and commercial and business services
in general.
The production clusters
One of the particular features of the Veneto model lies in its so-called "industrial
clusters", i.e. geographically well defined areas in which enterprises specializing in the
same type of product have become concentrated.
In the Veneto region, there are numerous production specializations that are
distinguishable in geographical clusters.
The various enterprising vocation of these geographical clusters in the Veneto region
include the following:
 the enterprises specializing in the processing of marble and in the production of
the related technologies are concentrated in the Verona cluster;
 the sector specializing in baked cakes and pastries (Pandoro, Panettone, Easter
cakes) is also concentrated in Verona;
 in the area south of Verona, in the triangle comprising Bovolone - Cerea - Isola
della Scala lying on the border with the province of Padua, there are over 400
companies producing artistic furniture;
 the heating system technologies sector has grown up in the Legnago clusters;
 in the Valle del Chiampo, in the province of Vicenza, there is a concentration of
tanning firms which are responsible for almost half the national output;
 the area between Vicenza and Bassano is occupied by the industrial jewellery
sector, with over 1,200 enterprises.
 the historic site of the textile industry was in the cluster around Schio, Thiene and
Valdagno;
 between the provinces of Vicenza and Padua there are about 300 firms
specializing in the production of fur coats;
 along the Brenta Riviera, between Padua and Venice, there are nearly 1000
enterprises producing more than 19 million shoes a year;
 Belluno and the Cadore cluster are the home of the companies making sunglasses
and spectacles whose leadership is acknowledged the world over;
 finally, there are the firms making the famous Murano glass on one of the islands
in the Venice lagoon.
Veneto and the recession
In recent years Italian economy has been going through great difficulties and an
unfavourable economic situation. Over eight years, it has had to cope with the
financial crisis, its high debt and a deep recession. Since the crisis began, estimates
show that Veneto has also been affected by the recession in a manner similar to the
national level: the -1.9 % percentage variation of Veneto's GDP was slightly better
than Italy's 2.4. The value of services showed a stasis (-0.6 %), compared to -3.3 %
for industry excluding construction, -5.6 % for construction, and a positive 0.5 %
percentage variation for agriculture. As for the demand, we estimated a -4 % of
household consumption and -8.5 % of investments.
Despite the economic difficulties, Veneto was the third wealth-producing region in
Italy after Lombardy and Lazio: 9.4 % of Italy's Gross Domestic Product came
from the Veneto region.
However, we are still far from pre-crisis economic values. In real terms, Veneto's
highest GDP value was achieved in 2007: 141.628 million euros .
While still remaining above the Italian average, per capita GDP is expected to rise
slightly in next years.
Veneto exports
The Veneto region is responsible for 14% of the nation's exports.
In the last fifteen years, the firms have progressively increased their relations with other
countries, adapting their organization to comply with the new demand for
internationalization.
In fact, flexibility and adaptability are essential features for competing successfully on
foreign markets. This strategy has enabled the Veneto's small and medium-sized
enterprises to reach a point at which their exports account, on average, for 50% of their
turnover.
.
Veneto exports involve a wide range of products, particularly in the metal-engineering
sectors (agricultural and industrial machinery, metal products, electrical materials) and in
the fashion system (clothing, footwear and textiles).
The region's trade is mainly in the direction of Europe, even if other markets have been
growing more and more.
Goods sold on the continent, especially France, Germany, Britain, Spain, Belgium,
Luxembourg and the Netherlands, are about 23,121 million US $ a year, 70% of the
region's total exports..
The leading province for exports is Vicenza with 28.3% of the region's total, followed by
Treviso with 22% and Verona with 18.4%. Those mainly responsible for this
performance are the small to medium enterprises, which now export an average of half
their production.
These companies have intensified their international trade relations during the last fifteen
years, and have succeeded in adapting their way of operating first to a European and now
to a global context.
Mechanical engineering products are the main item in the region's exports with 34% of
the total. Fashion goods are also continuing to do well with 23.5%. Among the other
categories are agro-industry, furnishings, paper, plastics, chemicals, tanned goods and
jewellery.
The latest figures also show significant increases in the export of office machinery and
agricultural and industrial machines.
The region has been looking beyond Europe to other markets for some time. Traditional
trade partners have been the United States and Asia, particularly Japan, Hong Kong,
South Korea, China and Taiwan. Since 1989 trade in manufactured goods has also
increased with Eastern whole accounting for 30% in some sectors.
The prospect of an enlarged European Union will put Veneto in an even more favourable
position to enter new markets in this area. There are also good prospects for the future in
Latin America.