Vicenza: industrial output down for the third year running

‘In the first quarter of 2026, raw material prices rose by 6.1%, whilst finished product prices increased by 3.3%. This gap therefore continues to squeeze companies’ margins, particularly those with less ability to pass on price rises along the supply chain. Temporary energy subsidies are not enough. A medium- and long-term programme is needed, translated into operational and verifiable measures. Businesses need to know what the energy landscape will look like in the coming years: costs, supplies, permits and infrastructure.”

Is the prospect of a return to nuclear power enough?

‘We cannot afford another twenty years of debate, only to find that it will take another twenty years to build a power station. If a decision is strategic, it must be prepared now, with seriousness, expertise and a timeframe compatible with the life of the industry. And we need genuine European coordination for a single energy market to complement a single capital market.”

Another recurring theme is bureaucracy. Following Prime Minister Giorgia Meloni’s proposal at the Confindustria Assembly to launch a joint initiative to reform bureaucracy, Confindustria Vicenza is calling for this process to begin immediately with a number of specific issues. Which ones?

‘President Meloni’s announcement that she is willing to work together on tackling bureaucracy is a step we view as positive and one that must be acted upon immediately. However, it is the approach and the timetable that will make the difference now. We need a few priority dossiers, clearly defined responsibilities and public deadlines. Simplification cannot remain a general concept: it must translate into a real reduction in processing times, duplicate authorisations and the uncertainty that is currently holding back investment.”

What might serve as a test case?

‘Firstly, there is energy infrastructure. Solar power, nuclear power, grids and storage facilities – all essential for energy security and industrial competitiveness – cannot be held hostage to endless red tape. If an investment takes too long to complete, to the point where it is incompatible with the lifespan of businesses, this is not merely an administrative issue: it is a competitive issue.’

Investments are being affected by the general uncertainty. How can we support them?

“The implementing decrees on hyper-depreciation cannot wait any longer. Announcing measures and then allowing the implementation process to stall amounts to putting industrial decisions on hold. Businesses plan for machinery, technology, facilities and skills based on real-time schedules. Every delay reduces investment, productivity and competitiveness.”

Finally, infrastructure. Vicenza has long been waiting for a link with the province of Trento.

“We are asking the Regional Government to launch the process for the Valdastico Nord. There is no time to lose. The competitiveness of a manufacturing region also depends on the ability to move goods, people and production efficiently. Every delay takes its toll on businesses and the region.”

Human capital – and the lack thereof – is a key focus for businesses. How is the employment situation responding to the current climate?

‘Employment remains stable despite weak production: 61% of businesses report no change in staff numbers, 20% report an increase and 19% a reduction. However, we believe that the stability of employment cannot be seen as a sufficient sign of strength. Businesses are holding on to jobs, but they cannot do so indefinitely if production, orders and margins remain under pressure. Without industry, there are no higher wages, no sustainable welfare, no economic autonomy. The responsibility today is to distinguish between what we cannot control and what we can finally decide. On energy, bureaucracy, incentives and infrastructure, no more words are needed: action is required.