While it is true that red tape and regulatory uncertainty can scare off foreign investors, it is equally the case that Italy continues to be a country viewed with interest, owing to the quality of its products, its knowhow, and the flexibility of its human capital. In the following interview, Marco Vidali – Executive V.P. North America and APAC Photo division of the British group Vitec, and incumbent President of Manfrotto Distribution in the United States – explains that there is a need to build on these strengths in order to create synergy, attract capital, and retain talent, while leveraging the country’s success stories.
Foreign investment in Italy: are we losing knowhow and jobs or have we managed to latch on to the opportunity it represents?
Foreign investment brings opportunities and but it also carries risks. An example of how it can fuel success is the acquisition that the Vitec Group made in 1989, securing ownership of the renowned firm Manfrotto based in Vicenza province. Vitec could have shifted production operations to the UK, while also moving the headquarters there. But instead it acquired the company and left everything in Italy so as not to lose out on Italian know-how and ingenuity. Not only that, it has also continued to invest: we have just reshored part of the production process from China to the Veneto region and have bought our main competitor. In a nutshell, a British multinational’s investment has turned an Italian firm into a market leader.
What are the advantages and disadvantages of investing in Italy?
The main risk is the country’s bureaucracy, which is a veritable maze to navigate. Foreign investors struggle to come to terms with the fact that, in Italy, the rules can constantly change. Yet they come here because the opportunities are enormous, especially if they succeed in finding good local managers who are well-acquainted with Italian conditions. In addition, the truly competitive cost of labor is no small advantage, along with efficiency and the premium market position held in many sectors. Thanks to this, Made in Italy branding offers export advantages, with its value well-acknowledged not only by end consumers but also within B2B exchanges.
How would you rate the state of play of Italian industrial policy?
Firstly, there is a need for greater labor market flexibility. Other areas requiring reform include tax breaks and the simplification of contract, taxation, and administrative laws. In short, anyone who invests should know how long it will take to bring their plans to completion and what the final bill will be. I believe that, in order to best capitalize on foreign investment, it is also necessary for Italy to focus on specific sectors and projects, while leveraging the country’s success stories.
Is Italy still a competitive place to manufacture and conduct research?
At Manfrotto, we continue to generate innovation and I think that, ultimately, Italian ingenuity makes up for the country’s systemic shortcomings. The challenge for the entire industrial system is that of retaining – or of attracting – the best young people so that the knowhow of our firms is not lost. In my view, the greater risks lie in the electronics industry, where there is stronger competition due to the pull of large hubs like Silicon Valley, which is a major magnet for Italian and European startups. Yet technology is a continually evolving sector where the cards are constantly being reshuffled. If Italy were to make concrete investments and create adequate infrastructure, I am convinced that greater success would be achieved in terms of improved market presence of foreign players.
What skills do big companies look for and what sort of training model do they favor?
In my day, Italian universities were very theory-based. However, I spent three of my five study years abroad. Those experiences, especially my time at UCLA in the United States, have been of tremendous benefit to me. But it was my first experience of working within a large multinational company where I learned the most. That is why I’m convinced that we should offer our youth more practical experience. Often, young Italians – precisely because they have experienced firsthand difficulties stemming from the education system – develop abilities that are very much sought-after abroad. In Asia, the flexibility and survival skills exhibited by Italians more than other nationals are highly rewarded. In China, this is a key ingredient for success. The problem is that, yet again, this is down to individual ability and not a virtue of the Italian system. In short, we have very capable people, but we often fail to pool their talents. We should instead find a way of drawing best advantage from this talent, for the benefit of the whole country.
