1. 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

2. The Regional Banks – Enterprises Observatory OBI was born in 1996(www.bancheimprese.it) The Regional Banks – Enterprises Observatory OBI was born in 1996(www.bancheimprese.it) 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) 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) ACTIVITIES REASERCH MONITORING STUDIES  PROCESS AND DYNAMICS OF COMPETITIVENESS IN SOUTHERN SMEs  ELABORATION OF ELEMENTS AND DATA TO HELP THE SOCIOECONOMIC ACTORS ON THE TERRITORY IN ECONOMIC PLANNING & POLICIES  RELATIONSHIPS BETWEEN BANKS & ENTERPRISES ACTIVITIES REASERCH MONITORING STUDIES  PROCESS AND DYNAMICS OF COMPETITIVENESS IN SOUTHERN SMEs  ELABORATION OF ELEMENTS AND DATA TO HELP THE SOCIOECONOMIC ACTORS ON THE TERRITORY IN ECONOMIC PLANNING & POLICIES  RELATIONSHIPS BETWEEN BANKS & ENTERPRISES

3. The area of Salento is located in the south of Apulia Region and it is a peninsula surrounded by Adriatic and Jonian sea.  Climate: Temperate, hot and dry summers;mild and wet winters  Total Area: 2759 squared Km  Population: nearly 813.297  97 Municipalities SALENTO AREA

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

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

6. In the 1950s 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

7. PRODUCTIVE UNITSWORKERSTOTAL 2401From 1 to 22833 194From 3 to 5 657 8From 11 to 50 138 1951 ISTAT: CENSUS OF GENERAL INDUSTRY

8. Between the end of the 1950s and the first half of the 1960s, 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:  With less productive units  Located in a concentrated zone

9. 1970s: Real industrialization started CASARANO TRICASE

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

11. Between the1980s and the beginning of the 1990s 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

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

13. 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 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

14. 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

15. 1996 2001 2007 Local UnitsWorkersLocal UnitsWorkersLocal UnitsWorkers Textile Factories 588302160429824851971 Clothes Factories 844870085688217575157 Shoes Factories 241742123570272042904 TOTAL 167319142169518830144610036 ISTAT DATA 200620072008200920102011 CASARANO109.689,575,669,069,269,3 EVOLUTION OF SHOES REVENUES (year basis 2005=100) SOURCE NOMISMA

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

17. POSSIBLE AVENUES I. 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) II.Empowering the ability as a subcontractor in a perspective of integration with the Parent Companies III.Implementing the ability to create high quality goods addressed to a specific niche IV.Collaborating with the more advanced areas in the sector throughout Italy ( “DUE PASSI AVANTI PER IL MADE IN ITALY” PROJECT * is an example) V.Last but not least entering into the new emerging markets(BRIC) rather than the traditional (USA; EUROPE) VI.These are important challenges whose success depends on the future of : Textiles, Clothes and Shoes  P POSSIBLE AVENUES I. 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) II.Empowering the ability as a subcontractor in a perspective of integration with the Parent Companies III.Implementing the ability to create high quality goods addressed to a specific niche IV.Collaborating with the more advanced areas in the sector throughout Italy ( “DUE PASSI AVANTI PER IL MADE IN ITALY” PROJECT * is an example) V.Last but not least entering into the new emerging markets(BRIC) rather than the traditional (USA; EUROPE) VI.These are important challenges whose success depends on the future of : Textiles, Clothes and Shoes PP

18. “2 PASSI PER IL MADE IN ITALY” An Agreement THE REGION OF RIVIERA DEL BRENTA - PADOVA, VICENZA AND VENEZIA- SALENTO

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

20. Thanks for Your Attention