Reshoring and Friendshoring. Geopolitics directs companies' choices

Attention and consideration of geopolitical scenarios have always been important in the strategic choices of companies with a strong international vocation, such as those in Lombardy. But never has foreign policy been so decisive as in this historical phase of great uncertainty. This is confirmed by the latest Survey on internationalisation drawn up by Confindustria Lombardy and Assolombarda together with the other territorial associations and in collaboration with Ispi and Sace, which took into consideration the responses of over a thousand already internationalised companies.

65.5% of the sample admit that geopolitical scenarios are now the macro-trend with the greatest influence on medium to long-term strategic choices, followed by technological evolution (26%) and accessibility to critical raw materials (18.1%). This attention to world events - which in a now globalised economy have a direct and rapid effect on the daily work of companies - has led seven out of ten companies to change their strategies: 28.1% evaluate their counterparts more carefully, 25% review their budgets more frequently and 23.1% have diversified their export markets. Geopolitics is also accelerating some transformations on the internal organisation, as evidenced by the fact that 30.5% of the companies surveyed have increased the focus on internationalisation activities, 26.1% are managing procurement more carefully and 13.2% are dealing with legal-customs aspects.

Interestingly, a phenomenon that began to be talked about in the immediate aftermath of Covid and then during the energy and supply crisis is now becoming a reality: that of 'reshoring' and 'friendshoring'. "14.4% of the sample replaced one or more foreign suppliers last year," explains the Secretary General of Confindustria Lombardy, Alina Candu. "And this figure is added to a 15.6% that had already done so previously, so we arrive at around 30% of companies that have had to revise their supply chains. In addition, there is a 6.8% that plans to do so shortly'. The objective is above all to shorten the supply chain or at least to strengthen its control by taking strategic parts to closer, politically stable and reliable countries to avoid supply disruptions. In fact, 51.1% of those who changed their supply networks replaced a foreign partner with another located in Europe, Italy or Lombardy, while 27.7% chose new non-EU suppliers, mainly in the United States or Asia.

Alongside geopolitical issues, also driving this reconfiguration are reasons of cost containment, indicated by 61% of the companies surveyed, the search for better product quality (28.4%) and flexibility factors (22%). "I would also like to highlight the choice of suppliers that meet sustainability criteria, which is indicated by a still small number of companies, 5.7%, but it seems to me to be a significant element nonetheless, if you think that in the four-year survey this aspect was not even taken into consideration," notes Candu.

As for the markets served, there were no significant changes compared to the previous survey two years ago. The 164 billion Euros exported in 2024 by Lombard companies were generated in 21 countries, with Germany firmly in first place, despite the difficulties (for 50.5% of the sample), followed by France (49), the United States (30.3%) and Spain (29.8%). China is confirmed in eighth place with 10.8%.