THE EVOLUTION OF TEXTILE CLOTHES AND SHOE SECTOR

THE EVOLUTION OF TEXTILE CLOTHES AND SHOE SECTOR IN SALENTO REGION OBI MEETS UNIVERSITY OF UMEA, SWEDEN BY DR. MARIA PATRIZIA MARINO PALAZZO TURRISI PALUMBO LECCE, 27 MAGGIO 2010 ORE 11, 00

PARTNERS BANCA POPOLARE PUGLIESE, BANCA POPOLARE DEL MEZZOGIORNO, BANCA DELLA CAMPANIA, UBI BANCA CARIME, BANCO DI NAPOLI, BANCA POPOLARE DI BARI, BANCA POPOLARE DI PUGLIA E BASILICATA, UNICREDIT GROUP, REGIONE PUGLIA, REGIONE BASILICATA, COMUNE DI LECCE, CONFINDUSTRIA (PUGLIA, SICILIA, CALABRIA, BASILICATA), ANCE (PUGLIA, BASILICATA) The Regional Banks – Enterprises Observatory OBI was born in 1996(www. bancheimprese. it) REASERCH ACTIVITIES MONITORING STUDIES v PROCESS AND DYNAMICS OF COMPETITIVENESS IN SOUTHERN SMEs v ELABORATION OF ELEMENTS AND DATA TO HELP THE SOCIOECONOMIC ACTORS ON THE TERRITORY IN ECONOMIC PLANNING & POLICIES v RELATIONSHIPS BETWEEN BANKS & ENTERPRISES

SALENTO AREA The area of Salento is located in the south of Apulia Region and it is a peninsula surrounded by Adriatic and Jonian sea. v. Climate: Temperate, hot and dry summers; mild and wet winters v. Total Area: 2759 squared Km v Population: nearly 813. 297 v 97 Municipalities

…. JUST SOME ECONOMIC FIGURES IN 2007: v. GDP PER CAPITA = € 16000 (63% OF THE NATIONAL GDP) v. N. OF EMPLOYED PER 100 INHABITANTS= 31, 7 v. EXIT OF FACTORIES= -1, 6% v RATE OF EXPORT GROWTH= 5, 1%

Textile Clothes and Shoes have deep roots and long tradition In the Region of Salento

In the 1950 s there weren’t any proper “factories” as they are known today , but… …in reality the Region was disseminated by a large number of workshops where taylors and shoesmakers worked

1951 ISTAT: CENSUS OF GENERAL INDUSTRY PRODUCTIVE UNITS WORKERS TOTAL 2401 From 1 to 2 2833 194 From 3 to 5 657 8 From 11 to 50 138

Between the end of the 1950 s and the first half of the 1960 s, the sector experienced moments of crisis for several reasons: • A huge number of residual productive units throughout the Region • The phenomenon of Emigration • The first signals of Consumerism Most of the productive units were expelled from the market and a new apparatus was born: v With less productive units v Located in a concentrated zone

1970 s: Real industrialization started CASARANO TRICASE

IN THE 1980 s THE SECTOR IN SALENTO EXPERIENCED A LARGE GROWTH VENETO EMILIA …It starts to compete with the historical productive systems of Central-Northern Italy TOSCANA LOMBARDIA MARCHE

Between the 1980 s and the beginning of the 1990 s the sector boomed ……and in consequence so did the geographic expansion of the factories Casarano, Matino Scorrano Ruffano, Taurisano, Parabita, Melissano Tricase, Corsano, Specchia, Acquarica del Capo, Gagliano del Capo, Patù Racale-Melissano Nardò

THE LARGE DEVELOPMENT BROUGHT A PROLIFARATION OF A HUGE NUMBER OF ALLIED INDUSTRIES OUTSOURCING OF THE PRODUCTION PHASES IN 1990 s THERE WERE DIFFICULTIES BECAUSE OF THE GOODS COMING FROM SOUTHEASTERN OF ASIA(TAIWAN, KOREA) …(1992)THE DEVALUATION OF ITALIAN CURRENCY FIXED THE ALARMING MOMENT

In the beginning of 2000 , Developing Countries entered in the global scene, becoming strong competitors especially in the light industry for Europe, Italy and as well as the Salento region China in 2001 entered in the WTO

Enterprises experienced a real dramatic crisis where most of them were forced to exit the market At this point what are the prospects for the sector

1996 2001 2007 Local Units Workers Textile Factories 588 3021 604 2982 485 1971 Clothes Factories 844 8700 856 8821 757 5157 Shoes Factories 241 7421 235 7027 204 2904 TOTAL 1673 19142 1695 18830 1446 10036 ISTAT DATA UNITA' LOCALI 900 856 844 800 Unità locali 700 757 604 600 588 500 INDUSTRIE TESSILI 485 400 300 200 CONFEZIONE DI ARTICOLI DI ABBIGLIAMENTO 241 235 204 100 0 1996 2001 2007 EVOLUTION OF SHOES REVENUES (year basis 2005=100) 2006 2007 2008 2009 CASARANO 109. 6 89, 5 75, 6 69, 0 2011 69, 2 69, 3 SOURCE NOMISMA

Outsourcing of production to those Countries with a lower labour cost for products of low/medium quality The Options are Reducing and Selecting the productive system in order to pursue high standard of quality In which way?

I. II. IV. V. VI. §P POSSIBLE AVENUES Being Responsible for the products in all aspects of production and logistics(Mr Barbetta, president of fashion system inside Confindustria, his industrial activity is an eloquent example) Empowering the ability as a subcontractor in a perspective of integration with the Parent Companies Implementing the ability to create high quality goods addressed to a specific niche Collaborating with the more advanced areas in the sector throughout Italy ( “DUE PASSI AVANTI PER IL MADE IN ITALY” PROJECT* is an example) Last but not least entering into the new emerging markets(BRIC) rather than the traditional (USA; EUROPE) These are important challenges whose success depends on the future of : Textiles, Clothes and Shoes

“ 2 PASSI PER IL MADE IN ITALY” An Agreement THE REGION OF RIVIERA DEL BRENTA - PADOVA, VICENZA AND VENEZIA- SALENTO

RIVIERA DEL BRENTA üHIGH QUALITY STANDARD IN PRODUCTION OF FEMALE SHOES üDEFICIT IN PRODUCTIVE CAPACITIES ( DEMAND > SUPPLY) SALENTO üMEDIUM/LOW QUALITY STANDARD IN PRODUCTION OF SHOES üOVER PRODUCTIVE CAPACITIES (SUPPLY > DEMAND) COMMON INVESTMENTS AND COOPERATION: Ø TRANSFER KNOW -HOW OF HIGH QUALITY STANDARDS TO SALENTO Ø SET UP A FASHION SCHOOL IN ORDER TO SUPPORT THE FACTORIES IN THE SECTOR AND PROVIDE HIGH EDUCATION IN THE FIELD

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