Over the past fifteen years, manufacturing companies have begun an unprecedented process of strengthening capital: the share of equity capital has almost reached German levels, surpassing France and Spain. This is what is revealed in the financial capacity chapter of the new Confindustria Study Center (CsC) publication, Manufacturing in Transformation: Is It Still Competitive?, which will be presented on Wednesday and can be anticipated by Il Giornale. The share of equity capital in total liabilities increased from 34.5% in 2007 to 47.5% in 2019. After a temporary reversal in 2020, caused by difficulties related to the pandemic, Italian industrial companies quickly returned to the path of strengthening capital: in 2023, the share of equity capital reached 48.9%, reducing the gap with Germany to only -2.2 percentage points and positioning Italian manufacturing at a capitalization level similar to that of Spain and higher than France. “We have practically arrived next to Germany”, observes Alessandro Fontana, director of CsC, recalling how in 2007 Italian industry ranked last among major European countries. This is also thanks to Ace (economic growth assistance), a capitalization relief introduced in 2012 and abolished in 2024.
At the same time, in fact, the use of bank credit has decreased: the ratio between loan stock and manufacturing value added has fallen from a peak of 100% in 2011 to 56% in 2024. The share of bank loans to total liabilities has decreased in Italy from 19.5% in 2007 to 14.2% in 2019, to 12.3% in 2023. “We are less dependent on banks”, stressed Fontana, highlighted how this assistance has contributed to the sector’s resilience.
Financial strength has a direct impact on competitiveness. Companies with financial constraints show 5 to 10% lower productivity. “If you have less capital, you will find it harder to invest and less productive,” summarizes Fontana. This problem is well known to economists and this report clearly measures it, showing that greater capitalization allows us to support more investment in technology, intangibles and innovation.
But not everything is positive. The most complicated element to emerge from the report is the increasing spread between companies: not all companies strengthened in the same way. “The aggregate picture is very good – admits Fontana – but in detail you see that there are companies that are very strong and others that are struggling.” And this happens across all size classes: micro, small, medium, and large. “In every group there are champions and fragile companies,” he explains, noting that the exceptional performance of some groups distorts the average.
The consequence is a system that is strong but not homogeneous. “Countries with little capital are the first to risk exiting the market if stagnation continues,” Fontana warned.
And here is the critical point: in a macroeconomic context defined by the CSC director as “stagnant, be optimistic”, financial capacity can make the difference between resistance and surrender. Bringing everyone “to a high level” is the challenge faced by the confederation led by Emanuele Orsini, because the competitiveness of the state system cannot be supported only by its leaders.
