Botto Poala’s appeal to the Government

«We want to bring the Government’s attention towards the size of textile and fashion and the importance of the industry for our country». Ercole Botto Poala words and goals for the future of the industry is clear. The sector closed the year with over 108.2 billion euros, with 10.4% growth over the pre-pandemic period. After the speech at the Chamber of deputies, the President of Confindustria moda told MFF about possible drivers of development, from reshoring to the Us pull and the return to China, to areas of intervention passing through the issues of taxation, sustainability, and generational continuity, which require support from the country system.

What are the current number of the textile-fashion segment?

The sector closed 2022 at 108.2 billion euros in sales, +16.9% year-on-year and about 10.4% over the pre-Covid-19 period. Exports stood at 66.6 billion euros, a 20.3% increase year-on-year and +17.1% over 2019.

What are the forecast for the industry in 2023?

The forecast for 2023 is serene but variable. Considering the two blocked markets of Russia and Ukraine, the US is doing very well, and it will be good if they register the same volumes in 2023 as in 2022. In summer, we expect an invasion of US tourists in Italy and Europe, so the industry must be ready. As for China, I expect it will react to freedom after Covid-19, as well as a big increase of luxury brands. This will push luxury in 2023. The return to the country will take a bit more, maybe in 2024.

What are your goals in this mandate?

First and foremost, to make members understand that unity is strength, a concept that is not so trivial and simple, since there are 60,000 companies for 600,000 people. There are realities that have either directly or indirectly a strong propensity to exports. Above all, we want to try to bring the Government’s attention towards the size of the textile and fashion industry and the importance of the industry of our country.

What has changed after the pandemic for Made in Italy?

After taking 30 Smes to the US market to meet buyers, we are going to China to continue this path. In addition, talking about the reshoring issue, Italy has become attractive again to import production for research, quality, and sustainability, but we have to be competitive and ready. The country system must learn to run. It has stood still for 60 years, it needs stability and planning skills to move forward, and so does Made in Italy.

What issues are you working on?

We have been helping companies to control their costs related to the energy issue. Key points include tax issues, sustainability combined with innovation, Industry 4.0, and education.

Starting with innovation and sustainability, where do you stand?

On the one hand, it is necessary to ask the Government for digital and Industry 4.0 supports for Smes, on the other hand to figure out how to access these incentives and take advantage of European funding. Today we all talk about sustainability. However, Brussels makes the rules, We play a game without a referee and the forces involved are enormous. We have to defend our interests and craftsmanship to try to find common ground.

By 2025 there will be a shortage of up to 90,000 artisans…

That is right, between 60,000 and 90,000 jobs will remain vacant between now and 2025. These jobs have been abandoned over the years. However, to work at the craft level in the fashion world is not a second-rate job, because knowing how to use your hands will become increasingly important in the future. Besides, this is something we need to tell companies, and to train entrepreneurs. Together with Rete TAM and Unioncamere we make sure that young people immediately have the opportunity to find jobs after coming out of technical institutes, while our Education Committee has started a project to upgrade teachers’ skills.

Do you foresee operations by groups and funds in Italy?

Funds and big capitals have understood that Made-in-Italy companies will always have a market that tends to expand in the long run. Today, the problem is how to supply while collecting raw materials in a sustainable way. The real added value is upstream. We will still see operations in terms of acquisitions or mergers. As Italians, we are product entrepreneurs because we have creativity, which is why the French buy in Italy. (all rights reserved)