Lombardy Economy Observatory

Economy

Positive signals for Lombard manufacturing

Economic growth in production, turnover and employment in the first quarter of the year

22 May 2025

5' min read

(Il Sole 24 Ore Radiocor) - Positive signs for Lombard manufacturing in the first three months of 2025. In a difficult international context, characterised by great geopolitical uncertainties, industrial production in Lombardy grew in the first quarter of the year compared to the previous quarter (+0.4%). There was also an increase in turnover (+0.1%) and a rise in employment (+0.5%), as well as a positive trend in orders from abroad (+0.4%) against a slight drop in domestic orders (-0.3%). Lombardy accounts for more than one third of the total in value of foreign investments on national soil and develops about one fifth of Italian net investments outside its borders; more than 60% of foreign investors in Italy, and 92 of the 100 most significant investors, are in Lombardy, which confirms its position as the leading manufacturing region in Europe. A supremacy that 'is important to remain so in the coming years,' commented the Lombardy Region's Councillor for Economic Development, Guido Guidesi. In fact, for this reason, the Region has decided to adopt new instruments and initiatives in favour of the production and economic fabric.

Data from Unioncamere Lombardia

Looking at the data in detail, employment returned to growth for both industry and the craft sector, with a positive balance between entries and exits (+0.5%). There is also a reduction in the use of the redundancy fund, which is still mainly used by the sectors most in difficulty (steel, textiles, clothing). The economic data for the craft sector confirm the resilience of the Lombardy manufacturing sector, recording minimal changes in levels compared to the previous quarter (-0.3% for both production and turnover), while orders are positive both from within the country and from abroad (+0.2%).

The trend figure also confirms the stability of production levels just below their peak values, recording slight negative year-on-year changes of -0.4% for industry and -0.3% for the craft sector. Industry orders did better, particularly from abroad (+3.0% from abroad and +0.3% from within). The trend figure for turnover was positive for both industry and handicrafts (both +0.7%). Among the best sectors: food (+3.7%), chemicals (+2.8%), paper-pressing (+2.3%) and clothing (+1.5%). The production of non-metallic minerals and wood furniture (+0.2%) and iron and steel (0%) stagnated. There was a moderate contraction in the production of mechanics (-1.2%), rubber-plastics (-1.4%) and miscellaneous manufacturing (-1.6%). More intense was the contraction in production levels in textiles (-3.7%), leather-footwear (-4.7%) and transport equipment (-5.6%). In the handicraft sector, there were two significant growth sectors: foodstuffs (+3.4%) and textiles (+1.9%). The wood-furniture (+0.4%), paper-pressing (-0.3%) and non-metallic minerals (-0.5%) sectors stagnated with minimal positive and negative changes.

Uncertainties related to the international context remain

As far as expectations are concerned, according to the Unioncamere survey, for entrepreneurs, uncertainties linked to the international economic context, energy costs and still weak demand, mainly on the domestic market, remain: however, new opportunities linked to the possible reduction in the cost of raw materials and a recovery in consumption are glimpsed. The survey also revealed a strong focus on the issue of sustainability by Lombard entrepreneurs. The issue is considered important for their business by 80% of industrialists, a share that drops to 66% among manufacturing artisans. Large enterprises show high levels of attention (over 90%), while among micro enterprises this share is below 60%, highlighting a structural gap.

Guidesi: 'Lombardy's companies remain competitive

'In a still complex geopolitical context,' explained Councillor Guidesi, 'Lombardy's companies once again confirm their extraordinary ability to remain competitive, managing to seize growth opportunities even in a situation that is anything but favourable. The positive data on both employment and production allow us to look to the coming months with optimism. Ours is a solid and mature ecosystem that continues to excel in Italy and Europe. Certainly there are still unresolved issues such as 'energy costs' and European over-regulation that need clear and concrete answers very quickly'.

Resumption signals in progress

"In an international framework still characterised by strong elements of uncertainty," was the thought of Gian Domenico Auricchio, president of Unioncamere Lombardy, "the increase in foreign orders (+0.4%) is a positive sign for Lombardy companies, which shows the first signs of an ongoing recovery. As far as duties are concerned, companies are fully aware of the potential criticalities, but they continue to demonstrate a remarkable ability to adapt, an element that represents a strong point in the confrontation with the new global scenarios'.

Confindustria Lombardy: 'EU to act on energy costs'

"In the face of a Europe that has announced a slowdown in the economy with an expected contraction of the Eurozone's GDP," added the president of Confindustria Lombardy, Giuseppe Pasini, "Lombardy is responding with positive signs, a sign of the resilience and reactivity of our region. The +0.4% recorded by Lombardy's industrial production with respect to the previous quarter, the stability of turnover, and the growth in orders from industry, with a greater contribution from abroad (+3%) than from within (+0.3%), are a clear indicator of how our companies are managing - at least for now - to cope with a global context that is still burdened by chronic burdens that are countered by a European action that is certainly not incisive. Electricity costs, unprotected strategic raw materials, threats of massive imports from China as an indirect reaction to US duties. These are the main critical issues that do not allow Europe to delay. If Brussels does not act quickly, the EU runs the risk of permanently compromising the competitiveness of its manufacturing, affecting precisely those territories that, like Lombardy, create value thanks to the real economy, rediscovered by global powers as a strategic factor of economic and social solidity'.

From Its opportunity for personnel in the craft sector

"The economic data reflect the positive trend recorded also by the territorial terminals of our organisations. Beyond the international scenarios, and trusting in a significant return from the duty issue, the concerns of manufacturing artisans mainly concern the cost of energy, which is often subject to sudden flare-ups, access to credit, and finding personnel," explained Stefano Fugazza, president of Claai Lombardy, adding that, "as far as personnel is concerned, we trust that the progressive success of the Its will soon have an impact on the artisan world as well. As far as energy saving measures are concerned, we can testify as an association to the success of regional and national calls for tenders that provide, among other things, incentives for the purchase of photovoltaic roofs, storage systems, and the purchase of less energy-intensive machinery. Then the credit front remains open for all. The support for Confidi (credit guarantee consortia) is good".

Flavia CarlettiRedattore Radiocor
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