From the booming €1.12 trillion turnover of its mighty machinery sector to the artisanal excellence of its musical instrument workshops, Italy's manufacturing industry remains a dynamic and complex powerhouse, deftly navigating global challenges while driving nearly 16% of the nation's GDP.
Key Takeaways
- In 2022, Italy's manufacturing production index stood at 105.3 (2015=100), marking a 1.8% increase from 2021
- The manufacturing sector contributed 15.8% to Italy's GDP in 2022, amounting to €297.5 billion
- Industrial production in Italy grew by 2.1% year-over-year in Q4 2023, driven by machinery and metal products
- Italy's manufacturing employment totaled 3.72 million in 2022, down 0.8% from 2021
- Manufacturing workforce in Lombardy region: 850,000 employees in 2022
- Average hourly labor cost in manufacturing €28.5 in 2022, up 4.2%
- Italy's manufacturing exports totaled €251.6 billion in 2022, up 11.8%
- Machinery exports from Italy €57.2 billion in 2022, 22.7% of total manufacturing exports
- Automotive exports €51.4 billion in 2022, growth 14.2%
- R&D expenditure in manufacturing €18.4 billion in 2022, 6.2% of total GDP R&D
- Private investment in manufacturing tangible goods €45.2 billion in 2022, up 8.1%
- Public funding for manufacturing innovation €2.8 billion via PNRR in 2022-2026
- Automotive components sector share 18% of manufacturing output in 2022
- Mechanical engineering 28% of manufacturing value added in 2022, €82.4 billion
- Chemicals and pharma 17.5% of manufacturing GDP contribution 2022
Despite rising costs, Italy's diverse manufacturing sector saw strong exports and growth in 2022.
Employment Statistics
- Italy's manufacturing employment totaled 3.72 million in 2022, down 0.8% from 2021
- Manufacturing workforce in Lombardy region: 850,000 employees in 2022
- Average hourly labor cost in manufacturing €28.5 in 2022, up 4.2%
- Female employment in manufacturing 28.4% of total in 2022
- Youth employment (15-29) in manufacturing 12.1% in 2022, down 1.5%
- Temporary contracts in manufacturing 15.7% of workforce in 2022
- Manufacturing R&D personnel 145,000 in 2022
- Apprenticeships in manufacturing 180,000 in 2022, growth 8.2%
- Unemployment rate in manufacturing sector 5.2% in 2022
- Part-time workers in manufacturing 14.3% in 2022
- Skilled workers (high qualification) 32.6% in manufacturing 2022
- Machinery sector employment 1.1 million in 2022
- Automotive manufacturing jobs 250,000 in 2022, down 3.1%
- Chemical industry workforce 190,000 in 2022
- Food manufacturing employees 400,000 in 2022
- Textile employment 350,000 in 2022, decline 4.5%
- Metalworking jobs 780,000 in 2022
- Electronics manufacturing employment 220,000 in 2022
- Furniture sector workforce 320,000 in 2022
- Pharmaceutical employees 65,000 in 2022, +5.8%
- Plastics industry jobs 180,000 in 2022
- Steel sector employment 35,000 in 2022, down 7.2%
- Ceramics workforce 75,000 in 2022
- Leather goods jobs 65,000 in 2022
- Shipbuilding employment 18,000 in 2022
- Aerospace jobs 45,000 in 2022, +12.5%
- Average manufacturing wage €32,100 annually in 2022
- Labor productivity in manufacturing €52,400 per worker in 2022, up 2.3%
- Manufacturing absenteeism rate 6.8% in 2022
Employment Statistics Interpretation
Italy's manufacturing sector presents a picture of resilient, high-cost craftsmanship where productivity is rising and apprenticeships are flourishing, yet it grapples with an aging, predominantly male workforce in traditional industries while futuristic sectors like aerospace soar.
Export and Import Data
- Italy's manufacturing exports totaled €251.6 billion in 2022, up 11.8%
- Machinery exports from Italy €57.2 billion in 2022, 22.7% of total manufacturing exports
- Automotive exports €51.4 billion in 2022, growth 14.2%
- Pharmaceutical exports €34.8 billion in 2022, +18.6%
- Chemical products exports €28.9 billion in 2022
- Food and beverage exports €52.1 billion in 2022, up 10.3%
- Textiles and apparel exports €23.7 billion in 2022, decline 1.2%
- Metal products exports €45.6 billion in 2022, +12.4%
- Electrical equipment exports €32.1 billion in 2022
- Furniture exports €13.8 billion in 2022, +9.7%
- Plastics exports €12.4 billion in 2022, up 6.5%
- Leather goods exports €6.2 billion in 2022
- Ceramics exports €5.1 billion in 2022, +4.8%
- Steel exports €12.7 billion in 2022, down 5.3%
- Shipbuilding exports €4.5 billion in 2022
- Aerospace exports €10.2 billion in 2022, +15.1%
- EU accounted for 58.4% of Italy's manufacturing exports in 2022
- USA share of manufacturing imports 8.7% in 2022, value €28.4 billion
- China manufacturing imports €45.2 billion in 2022, +7.6%
- Germany manufacturing trade surplus with Italy €15.3 billion in 2022
- France imports from Italy manufacturing €32.6 billion in 2022
- Manufacturing trade balance surplus €45.8 billion in 2022
- Wine machinery exports €1.2 billion in 2022
- Luxury goods manufacturing exports €18.4 billion in 2022
- Italy's manufacturing imports €206.3 billion in 2022, up 16.2%
- Energy-intensive goods imports €42.7 billion in 2022
Export and Import Data Interpretation
While Italy’s industrial engine hums along brilliantly, exporting everything from fine wine machinery to pharmaceuticals and proving it's far more than just a pretty boot, its persistent trade deficit with Germany and growing dependence on imported energy reveal a serious Achilles' heel wrapped in a Brioni suit.
Investment and R&D
- R&D expenditure in manufacturing €18.4 billion in 2022, 6.2% of total GDP R&D
- Private investment in manufacturing tangible goods €45.2 billion in 2022, up 8.1%
- Public funding for manufacturing innovation €2.8 billion via PNRR in 2022-2026
- Patent applications from manufacturing firms 12,500 in 2022
- Venture capital in manufacturing tech €1.9 billion in 2022
- Machinery sector R&D spend €4.2 billion (8.7% of turnover) in 2022
- Automotive R&D investment €5.1 billion in 2022
- Pharma R&D €4.8 billion in 2022, 9.2% of sales
- Green tech investment in manufacturing €3.2 billion in 2022
- Digital transformation investments €6.7 billion in 2022
- AI adoption R&D in manufacturing €0.85 billion in 2022
- Robotics investments €1.4 billion in 2022
- Number of manufacturing startups 2,450 in 2022
- Tax incentives claimed for R&D €12.3 billion credit in 2022
- Collaborations with universities for manufacturing R&D: 4,200 projects in 2022
- Energy efficiency investments €2.9 billion in 2022
- Circular economy R&D €1.1 billion in 2022
- Biotech manufacturing R&D €0.76 billion in 2022
- Nanotech investments in manuf. €0.32 billion 2022
- FDI in manufacturing €14.5 billion in 2022
- Mezzogiorno manufacturing investment €8.2 billion in 2022
- North Italy manufacturing capex €32.4 billion in 2022
- SMEs R&D participation 68% of manufacturing firms in 2022
Investment and R&D Interpretation
Italy's manufacturing heart is beating with impressive vigor, investing heavily in its future, but its public funding for innovation remains the equivalent of trying to win a Formula One race with a government-subsidied Vespa.
Production Volume and Growth
- In 2022, Italy's manufacturing production index stood at 105.3 (2015=100), marking a 1.8% increase from 2021
- The manufacturing sector contributed 15.8% to Italy's GDP in 2022, amounting to €297.5 billion
- Industrial production in Italy grew by 2.1% year-over-year in Q4 2023, driven by machinery and metal products
- Italy produced 1.74 million tons of steel in 2022, down 8.5% from 2021 due to energy costs
- Manufacturing turnover in Italy reached €1.12 trillion in 2022, up 18.4% from 2021
- The production index for consumer goods in manufacturing was 102.4 in 2023 (2020=100)
- Italy's cement production totaled 22.8 million tons in 2022, a 4.2% decline
- Chemical manufacturing output grew 3.7% in 2022 to €65.4 billion
- Automotive production in Italy was 795,857 vehicles in 2022, down 16.6%
- Machinery production value hit €48.2 billion in 2022, up 12.1%
- Food and beverage manufacturing output index at 110.2 in 2022 (2015=100)
- Textile and apparel production declined 5.3% in 2022 to €28.1 billion
- Plastic and rubber products output grew 4.8% to €18.7 billion in 2022
- Electrical equipment manufacturing value €22.4 billion in 2022, up 7.2%
- Furniture production reached €21.5 billion in 2022, +9.4%
- Pharmaceutical manufacturing turnover €52.3 billion in 2022, growth 13.5%
- Metal products excl. machinery output €75.6 billion, +10.2% in 2022
- Paper and paper products production 8.9 million tons in 2022
- Glass and ceramics output value €15.2 billion, +6.1% in 2022
- Leather goods manufacturing €6.8 billion in 2022, down 2.1%
- Shipbuilding output 1.2 million gross tons in 2022
- Railway vehicles production value €3.4 billion in 2022
- Aerospace manufacturing turnover €15.1 billion in 2022, +14.3%
- Rubber tire production 85.6 million units in 2022
- Aluminum production 450,000 tons in 2022
- Printing and reproduction services €12.7 billion in 2022
- Tobacco manufacturing €7.2 billion, stable in 2022
- Jewelry and watches output €8.9 billion in 2022, +5.6%
- Sports goods manufacturing €2.1 billion in 2022
- Musical instruments production €0.45 billion in 2022
Production Volume and Growth Interpretation
Italy's manufacturing sector in 2022 was a classic tale of two factories: while its overall production and turnover grew robustly, this masked a dramatic internal reshuffle where energy-hungry heavyweights like steel and automotive slumped, while clever, high-value sectors like machinery, pharmaceuticals, and furniture energetically picked up the pace and profits.
Sector Breakdown
- Automotive components sector share 18% of manufacturing output in 2022
- Mechanical engineering 28% of manufacturing value added in 2022, €82.4 billion
- Chemicals and pharma 17.5% of manufacturing GDP contribution 2022
- Food processing 12.3% of manufacturing employment and output 2022
- Textiles, clothing, leather 9.8% of exports from manufacturing 2022
- Metals basic and fabricated 16.2% of production index 2022
- Electrical and electronics 9.4% of manufacturing turnover 2022
- Furniture and other wood 7.2% of manufacturing output 2022
- Plastics and rubber 6.5% share of manufacturing value 2022
- Non-metallic minerals (ceramics, glass) 5.8% of output 2022
- Transport equipment excl. auto 4.1% of manufacturing 2022
- Aerospace and rail 2.3% specialized manufacturing 2022
- Paper products 3.2% of manufacturing employment 2022
- Luxury goods (jewelry, fashion accessories) 2.7% high-value manuf. 2022
- Steel subsector 1.8% of total manufacturing production 2022
- Shipbuilding niche 0.9% but high export intensity 2022
- Printing and publishing 2.4% service-manuf hybrid 2022
- Tires and rubber products 1.5% specialized 2022
- Cement and lime 1.2% energy-intensive manuf 2022
- Wine and beverage machinery 1.1% niche leader 2022
- Medical devices manufacturing 3.6% growing sector 2022
- Cosmetics and perfumery €12.4 billion turnover 2022, 4.2% share
- Tobacco products 0.8% regulated sector 2022
- Sports equipment 0.6% consumer goods manuf 2022
- Musical instruments 0.2% artisanal excellence 2022
Sector Breakdown Interpretation
While Italy's manufacturing might be famously held aloft by the gears of mechanical engineering (€82.4 billion strong) and propelled by automotive components, its true genius lies in stitching together this robust industrial spine with the artisanal flair of textiles, the nourishing craft of food processing, and the intoxicating allure of perfumery and luxury into a remarkably balanced and stylish economic ensemble.
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