Italian engineering companies have always had a strong flair for exporting products, especially due to their technical know-how and great flexibility. Notably, the year 2022 has been a particularly fruitful and prolific year for export companies, as highlighted by Federmeccanica’s December 2022 business report:
“In the first nine months of 2022, engineering exports increased by an average of 13.5% when compared with the same period in 2021, showing a softening trend in the course of individual quarters, while imports grew the most at 23.2%. Moreover, it should be noted that the increases in value interchange were influenced by strong growth in average unit values.”
The total export freeze to Russia, or rather the global supply-chain crisis which started with COVID and escalated due to the Russian-Ukrainian conflict, has reoriented European companies to invest in European suppliers, particularly in Italian suppliers again.
This is certainly favorable for Italian Engineering. However, it goes without saying that there could be many pitfalls for small and medium-sized companies that want to orient their business abroad.
2015 marked the beginning of a journey for OMME that consisted of specific steps aimed at growing turnover sustainably by focusing exclusively on exports.
Eight years ago the company was making 29% of its turnover abroad, in particular with foreign factories of Italian customers, eight years later in 2022, exports reached 75%.
This sudden growth is certainly made up of a lot of business techniques and training but above all, tenacity by the owners and the entire management also contribute to this growth.
The first steps taken were to toughen up the sales department by taking advantage of the consulting services of a Temporary Export Manager followed by the support of multi-firm agents and specific consultants for various markets.
A major boost eventually came from strengthening the corporate image brought about by participating at the Hannover Fair, as well as, the renewal of the website (multilingual) which took place before the fair. The professional use of LinkedIn also became an indispensable tool with huge potential that contributed to this boost.
In general, market orientation is crucial, but product and service orientation is even more essential. A shipment delivered on time with proper packaging, and prompt response to the customer regarding any sort of problem are essential components to success in foreign markets.
Countries such as Australia, Canada, or China that are far away from Italy require maximum attention given to all aspects from product preservation to manufacturing perfection because the cost and time of any post-shipment intervention can generate grievous economic and financial damage to the company and the customer.
We are very proud to have become a strong export-oriented company, we do not dare to want to teach anyone anything but only share our experience to testify that great transformations are possible through commitment and perseverance.
The following graph shows the trend of export turnovers from 2015 to 2022.
Export Italy: How we approached new foreign markets
When we decided and started to explore new foreign markets, our approach was to identify and thoroughly understand different countries and their particular market needs. We wanted to understand the cultures, languages, and customs so that our products could best fit the local environment.
The initial process was to strengthen the sales department through the leadership of an interim export manager (Temporary Export Manager), and later we sought the assistance of multi-company agents and specialized consultants on various markets to ensure that our products were represented adequately in each country.
To be specific, the role of the Export Temporary Manager turned out to be pivotal as it focused on supervising and managing all aspects of the export process.
Export Italy procedures include:
- market research
- contract negotiation
- preparing documents
- obtaining necessary licenses and permits
- organizing shipments and logistics
- monitoring the progress of shipments and ensuring that all regulations related to international trade are in compliance
The role also entailed building relationships with customers, suppliers, government agencies, and others involved in the export process.
On some occasions, the Temporary Manager was also responsible for training staff on export procedures and regulations, preparing reports, and analyzing export data.
We also analyzed existing competition in each market and identified areas where we could stand out. We then conducted extensive market research to thoroughly understand the needs and desires of our target audience in each market.
This involved customer interviews, surveys, focus groups, and industry reports. We identified areas where we could sell our products better and develop new custom features that would appeal to our target customers.
Strengthening the company’s brand through participation in the Hanover Fair was a major boost. However, we did this even earlier through the revamping of our website (multilingual) and the efficient use of LinkedIn.
Finally, we created marketing plans tailored to each market to ensure maximum visibility for our products. Thanks to this comprehensive approach, we have been able to successfully enter several new markets without encountering major problems or difficulties.
In general, being market-oriented is crucial, however, having a product-and-service-focused approach is even more fundamental. On-time deliveries, suitable packaging, and timely responses to customers for any queries are key elements for succeeding in foreign markets.
Market orientation is the process of understanding and responding to customer needs to create value.
It involves understanding customer demands and creating products and services that meet those demands.
This approach ensures that the company will continuously improve its offer to ensure customer satisfaction.
Countries such as Australia, Canada, or China which are quite far from Italy, require strict supervision on every aspect regarding the manufacturing and delivery of the product, leaving nothing out since any post-shipment adjustments could have great financial repercussions for both the company and the customer.
We are working to boost exports from Italy with products that are 100% made in Italy.
Export Italy: Conclusion
We are very proud to be a strong export-oriented company, and while we certainly in no way want to give advice to anyone, our journey stands to show that with tenacity and dedication, great strides can be accomplished.
In addition to working hard to increase export from Italy, we also devote ourselves to other aspects of the company, such as work safety: this article talks about the “Maestri del Lavoro” award that we received in recognition of our efforts.