2003 closed with a negative balance for the Italian exports of raw and finished natural stone. Internazionale Marmi e Macchine Carrara SpA, that always processes the industry statistics from Istat (Central Statistic Office) data, announced that in 2003 Italy exported 4,355,512 tons of aw and finished marble and granite (including chips and slate), worth one billion 731,414,231 Euro, which amounts to a nation-wide drop of –8.9% by quantity and a loss of –11.6% by value. The Italian export trends are even more negative if we look at the most important and valuable entries alone, i.e. raw and finished marble and granite that mainly come from Tuscany. If we consider these entries alone, the exports drop to 3,049,027 tons, worth one billion 666,367,709 Euro, with a 10.2% decrease by quantity and an 11.5% decrease by value. Apart from the positive balance of the exports of granite blocks and raw slabs, which are however very low, all the entries of quality exports are positively decreasing.
Even harder is the situation of the exports in the Apuan and Versilian area, which recorded a total export of just about one million tons of raw and finished marble and granite, worth 475 million Euro, amounting to minus 16.7% by quantity and minus 16% by value.
“These negative figures are the consequence of a very hard year – commented Paris Mazzanti, General Manager at IMM – in which several negative situations and events added up to each other: from the war in Iraq in March, that followed a long time of uncertainty for the whole region,, to the SARS, that drastically cut down the number of Asians in such important events as fairs, for instance the Fair of Carrara, a traditional meeting point and trade venue. Let’s add to this the “super Euro” that undermined the already difficult competitiveness of the European products against the Far East and South America, that still makes for fierce competition on those markets where goods are quoted in dollars, and here’s a full picture of the causes that have affected the industry, which have taken different forms according to the producers’ destination markets and their specialisation”.
Apart a few exceptions (in quantities and values that are however very low), the drop affects all destination markets, starting with the EU, which, with a value of 565 million Euro, is the greatest market for Italian marble and granite but recorded a –12.71% fall in the value of marble exported by Italy. Remarkable drops were also recorded in the exports to Germany (the first destination country for our exports), which, with 276 million Euro, recorded minus 5.24% by quantity and minus 9% by value; also Spain, with which the trade has always been intensive, recorded a fall and imported Italian goods by just 47 million Euro, amounting to minus 22% by quantity and minus 13% by value.
There are also serious problems with the exports to traditionally important countries, such as the United Kingdom (56 million Euro, minus 20% by quantity and minus 16% by value) and France, where the drop in value was minus 18.6% compared to 2002.
Steady are the flows to Switzerland, an importer of “quality goods”, with a total value of 86 million Euro, while Russia recorded a 9% growth in its imports. Outside Europe, the United States show contradictory trend: the imported quantities increased by 2% but the mean values decreased by 13%. Good news come from the Middle East, where the Arab Emirates increased the value of their imports by +44.6%, worth 58 million Euro. A quite unusual performance, so much so that this kind of positive balance should be considered as related to some special type of contracts. Very favourable is the export trend to China, which, with 31 million Euro, recorded a 27% increase in the imported quantities, while the value dropped by 1.5%; the Far East in general recorded minus 18% by value and minus 2.5% by quantity.
As regards natural stone exports, the markets of the ten countries that joined the European Union on May 1st 2004 are quite a different matter: during 2003, they imported Italian raw and finished marble, worth over 55 million Euro, and are, overall, a fairly good market. Apart from an accurate review of the trade flows, what is clear is that there are general problems for the Italian natural stone market, without any general response strategy coming up to make the Italian companies take back their leading market positions.
The new markets that are opening up in Eastern Europe and in some areas of the Mediterranean basin are interesting, often promising, but far from the role and importance that such traditional areas as the United States, Germany, Japan, the Middle and the Far East in general, have been playing for so many years. The EU markets have not been able to make up for the problems triggered by the strong Euro currency, and it is just for this reason that they have often opted for external products, especially when price was a decisive choice factor.
The Italian domestic market has therefore increasingly weighed on this industry, also on the local companies, supported by several provisions and circumstances that boosted the building and housing markets, with homes viewed as ‘shelter goods’ for investments as well as shelters in which to invest at times of collective uncertainty and with the will to get back to ‘intimacy’.
The Italian companies have taken care of the United States more intensively than ever, by developing market penetration strategies that sometimes pass through other countries, especially South-American countries, to intensify their competitive penetration strategies, while trying to add Italian or other products of their own to the local products, thereby keeping the share of the Italian products fairly important, although less than before. There have been no drops in the number of jobs yet, according to the statements of the companies that replied to an economic survey conducted by IMM Carrara, but the total of worked hours is decreasing and, whilst turnovers are not decreasing, the profit margins are falling and no structural investments are being made.
All that is left to the Italian companies are some niche markets and productions related to some unique local traditions and professional skills: those “distinctive skills” that are typical of a productive region, that are precious and should be protected, especially at such hard times, because they go hand in hand with the other managerial and generally competitive factors that still belong to the Italian stone industry.