By Alberto Cavicchiolo

Together with Commissioner Giuseppe Zamberletti and regional president Antonio Comelli, Dario Barnaba was one of the promoters of the reconstruction project for the Italian region of Friuli, when it was devastated by an earthquake in 1976.

Thanks to this team, the Friuli region experienced unprecedented renewal which, over the course of about 10 years, led to a full recovery and marked the establishment of the “Friuli model”.

In 2011, 35 years later, Dario Barnaba was invited to Tokyo, where he declared to a large audience: “I see similarities between Fukushima and post-earthquake Friuli. The special autonomy statute was a decisive factor: the system of activities devised by the region’s parliament, government and administration was translated into tangible projects.”
Also thanks to that reconstruction, the Friuli Region, currently led by Massimiliano Fedriga, has become a very important industrial area.

Let’s compare the 1976 earthquake in Friuli with the 2020 crisis.

Damages in the territory would have amounted to about 20 billion in today’s euros (equivalent to almost 5,000 billion lire). The Region invested more than double that – 13,000 billion lire – which would be over 40 billion euros today. The current recovery plan is over 200 billion but with much higher benefits.

The crisis of 2020 is much more serious than the earthquake of ’76. This is primarily due to its diffusion, to the insecurity it causes in our citizens, to the economic crises it’s given rise to. So, it must be faced with maximum political and social cohesion.
Today, Friuli can offer an example of the political cohesion with which it faced and succeeded in what was perhaps the greatest and most demanding challenge in its history.

You were a 30-year-old councilor then. What were the steps in the reconstruction?

At 9.00 pm on May 6, 1976 a disaster struck the region. An earthquake lasting one minute (an eternal minute) and registering 6.5 on the Richter scale struck Friuli, affecting 5700 square kilometers (equal to 72% of the region’s area), and a population of nearly 600,000 inhabitants.

Friuli emerged from that minute shocked and unrecognizable; however the institutions, the government, the region, acted immediately. Prime Minister Aldo Moro appointed the Undersecretary of the Interior, Zamberletti, as extraordinary commissioner for the emergency – granting him exceptional powers.

Japan — August 21, 2011

At the time I was the regional secretary of the Italian Republican Party, I participated, together with others, in drafting the guidelines for reconstruction, personally dealing with the recovery of the artistic heritage, under the guidance of Antonio Comelli, a statesman of great foresight, collaborating with Salvatore Varisco and Roberto Dominici, appointed, at different times, as Council members in charge of reconstruction.

About 40,000 displaced people spent the winter on the Adriatic coast. How many houses did you build?

Winter, particularly cold in Friuli, was fast approaching and an inevitable and difficult choice had to be made: it was necessary to prepare to relocate and house all those who had been rendered homeless.
A complex operation led 40,000 people to move to coastal areas of Friuli Venezia Giulia (Grado and Lignano) and the Veneto region (Bibione, Caorle and Jesolo). By May 1977 20,000 dwellings had been built, covering a total area of 750,000 square meters, and situated in 30 villages, the population was later able to return to their hometowns.

How was the reconstruction implemented?

Summarizing a complex system it’s possible to highlight a few crucial steps: The “Solidarity Fund for Friuli”, was endowed on several occasions with substantial financial contributions, the use of which was delegated to the Region; while successive governments, from Aldo Moro, to Giulio Andreotti, and from Giovanni Spadolini to Bettino Craxi, prioritized getting production back on track.

The restoration of public service buildings, as well as the roads, water, electricity and telephone networks then followed, along with the construction of hydrogeological works, the static and functional recovery and the reconstruction of damaged or destroyed houses; finally, the restoration of artistic heritage and a focus on youth employment.

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By Federico Piazza

A small Italian company, located just an hour away from Venice, is the global leader in the production of paint-brush industry technologies and is moving quickly towards complete digitalization.

MGG in Conegliano, specialized in producing machinery for paintbrush and roller manufacturing, is increasing turnover, staff and investment in R&D by implementing a short supply chain and augmented reality for technical assistance and customer training.

“We’ll complete the process this year”, affirms Loris Maestrutti, CEO of MGG Srl, which is at the forefront of machines and plants for the production of round and flat brushes and rollers used in sectors such as construction, restoration, DIY, woodworking and the nautical industry. A niche market that calls for quality technology.

MGG’s case is a fascinating one. It started out as a typical artisanal business in the late 80s and has always maintained low output but exceptionally high quality, with a completely in-house design and manufacturing supply chain.

In 2019, in order to increase the growth objectives, without compromising on the quality of either products or customer service, founder and president Gianfranco Marcon decided to entrust the organizational and strategic transformation of the company to a top manager from big industry.

As a result, Loris Maestrutti, with over thirty years of experience at Danieli and Camozzi, is now taking on the challenge of the culture and requirements of a typical Italian SME.

Over the last four years, MGG’s turnover has grown from 2.9 to 5.0 million Euros and it has expanded its workforce by 60%. It has also increased its annual R&D investment ratio by three-and-a-half times since 2017. This year, projected growth is no less than 20% with pre-scheduled orders and others currently under negotiation.

Production capacity has to be ramped up in order to achieve even more ambitious results, but quality remains paramount.
This calls for a complete reorganization according to individual goals, accelerating the transformation of processes such as: full automation, advanced artificial intelligence algorithms, transversal application of IoT, unique data culture with digital management of internal and external flows on a cloud platform, and market diversification through specialized product lines.

“Full digitalization will take place through partnerships with companies specialized in the supply of robots and quality/vision control systems, but also with sustainability in terms of worker safety,” explains Maestrutti, “With a focus on quality, to be understood as a measurable concept through constant innovation to maintain a level of excellence.”

Marcon emphasizes the strategy of an internal manufacturing chain and short component supply chain to ensure a fast and uninterrupted supply, “MGG has always followed this business model from its inception back in 1989” adds Marcon.
A vision that has continually showcased the company’s strength, even more successful in this particular moment that has affected business across the globe. MGG has four specialized product lines.

“MGG Paintbrush Innovation designs and produces for the paint brush market, it represents 70% of our revenues. MGG Meccanica, with its 18 latest-generation CNC machines, performs in-house machining and also offers contracting services. MGG Plant supplies industrial equipment for furniture assembly and wood palletizing. MGG Robotics designs and manufactures quality/vision control systems.”

This latter division is at the IT heart of the digital revolution. Firstly, it serves the core business — paint-brush machine manufacturing — where complex data about production lines, composed of 16 pieces of equipment and capable of an hourly production rate of 1500 pieces, need to be elaborated and analyzed.

In addition, MGG, has just launched the web-based Service on Site platform, thus becoming the first company in the sector to offer such service. Technical assistance and training for the client can be carried out through augmented reality applications with direct chat.

MGG Robotics is also diversified in three other sectors. “Medical physiotherapy, with software developed for muscular rehabilitation; the sports industry, with machines used for various types of training; the steel industry, with automated systems for separating ferrous from non-ferrous elements in industrial waste recycling, which reduces the amount of human work and fatigue while maintaining constant precision in this type of activity.”

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How Italian industry is facing the challenges of doing business remotely

By Federico Piazza

Remo Pedon, Vice President of the Confindustria Vicenza (Italian Industry association) who is charged with the specific task of handling foreign markets, is taking stock of the current problems, strategies and tools for Italian companies to deal with the export and internationalization situation in November 2020.

Vicenza is the nation’s number one when it comes to per capita exports. The manufacturing landscape is highly varied: in addition to metalworking and mechanical engineering, there’s also leather tanning, jewelry, fashion and many other specializations.

How are companies doing in terms of international operations?

Our exports have been heavily influenced by the pandemic. Major problems have occurred because our companies have been able to establish themselves and interpret client’s needs in a sartorial way, and that work model makes it difficult to let go of in person contact and to manage the relationships remotely.

However, it’s still important to take advantage of all the opportunities offered by technology. Virtual showrooms and trade fairs for example. There’s also using social networks more effectively, to continue communicating with your established clients and to acquire new ones.

What’s the first thing that’s needed to deal with international markets? 

The complexity of the geopolitical and macroeconomic scenarios requires exporters to increasingly diversify their markets, along with the ability to analyze those scenarios and the associated risks.

As a Confindustria, we collaborate with Intesa Sanpaolo, the most structured and internationalized Italian banking group, which offers us informational and operational tools to help our companies.

In which markets are Vicenza’s companies most internationalized?

The key markets are still European: Germany, France, Switzerland and the United Kingdom top the list. Then there’s also North America. The USA is really where the internationalization of our companies has grown the most; it’s a very dynamic and complex area that calls for organized oversight.

What about Asia and Africa?

China is important for Vicenza’s exports, not only as a place to go and produce things. Today it has become a market for our products, including consumer and luxury goods.

India has enormous potential, but there are still many barriers to entering that market.
We need to invest in on-site production, but India’s economic ecosystem is not easy for our SMEs to navigate.
That said, there are still many success stories, because India offers strong engineering expertise and the fact that the use of English is widespread also helps.
With ICE (an Italian agency promoting foreign trade and the internationalization of Italian companies) we are focusing intensively on agricultural machinery and agri-food technologies, sectors where India has made substantial investments.

We also expect a lot from African markets, where our companies can play an increasing role.

Are there prospects in Russia?

It’s a market which has given us a warm welcome. The Russians have purchased a great deal without forcing our exporters to establish a legal corporate presence in their country.
Now the context has changed due to the reciprocal sanctions and the depreciation of the ruble. Today, it’s very difficult for many sectors to sell in Russia without being physically present or without producing there.
We welcome the efforts of the Confindustria Russia’s companies, which are able to offer high-level informational and relational support with local institutions.
Of course, future prospects in the Russian market, as well as for the market in the Middle East, will depend very much on trends in the petroleum industry.

Do international trade agreements help?

Trade relations negotiated by the EU are an important growth lever. The agreements with Canada, South Korea and Japan have had immediate effects on the growth of our exports. We expect a great deal from the EU’s trade deal with Vietnam, which has just come into force. Meanwhile, we’re afraid that we won’t reach a Brexit trade deal with the UK.

There aren’t many international joint ventures on the part of Veneto-based companies.

It’s an old and complex problem, often a consequence of the size limits of our companies. Naturally, our SMEs move cautiously in areas and territories that they don’t know well. It’s possible that our institutions could help more, although the commitment and efforts of the embassies, ICE, and SACE/SIMEST in recent years is commendable.

In the Confindustria’s ‘Country Guides’ we organize country communities, relating corporate experiences and offering training and discussion. In 2004 we created the Samorin industrial park in Slovakia, the first and perhaps only one led by an Italian entrepreneurial association abroad.

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By Francesca Bruni, Art Valley

The headquarters of the Ferroni steel manufacturing group, with its offices, foundry and factory, stretches out to a point on the shores of Lake Baldo in Vallelunga, as if it were a hand with well-sculpted fingers. The road leading to Vallelunga runs along one side of a small lake surrounded by high hills, fed by the flow of mountain streams. At the curve of the last bend, take the road that runs alongside Lake Baldo, and then, two or three kilometers further on, you reach Ferroni.

On the banks of the Marzo stream, in Getto, between Lake Baldo and Lake Vergine, in the province of Pressa, Mario Ferroni was born in 1918.
Since the Middle Ages, Getto has been a village dedicated to the steel industry, in addition to family farms. Mario’s grandfather, Duilio, who forged tools for agriculture and construction, had moved to Getto from Altopasso. His ancestors were carters. The water from the Marzo stream supplied the driving force necessary to power the large waterwheel that ran the workshop. 

Duilio’s son, Giovanni, Mario’s father, married Lina, a farmer’s daughter. They live in what was known as a casa-bottega: adjacent to the house is the workshop; on the ground floor, Lina manages a one-room tavern with 4 benches, a couple of tables and a large counter. She also takes care of the housework, their small farm and the farmyard animals. Every member of the family has managerial and operational duties. No natural device, but an artificial society. Around the workshop, conversation. No one is marginal, not even the children. They contribute to the saga.

Mario goes to school, wooden clogs on his feet, carrying his books and notebooks in his arms. Every morning, before school, Mario serves at mass. Every evening, Mario and Lina kneel and recite their prayers. With the arrival of summer, neighbors and friends meet on the street. The men also gather in the pub, the women in the chairs in front of the house.

Casa-bottega, home and workshop, artisans and farmers: Italy’s foundation for centuries. The year was inscribed on the large stones of the trip hammer in the Getto workshop: 1616. From 1616 to 1918, when Mario was born, that was still the trip hammer. In the Renaissance, and even later, in Italy a company that produced manufactured goods was called a “bottega”. In the Renaissance, the bottega was the device of the enterprise.

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By Suroopa Chatterjee and Bonnie McClellan 

A visit to the Prosecco wine region in Veneto, Italy, would certainly make a tour of Venice and its surroundings complete. This area takes pride and joy in sharing its traditions, interacting and exchanging experiences with the wine enthusiasts who visit it.

The care and attention that goes into making this wine also shows results. The Prosecco Superiore DOCG produced in Conegliano Valdobbiadene in 2019 was valued at roughly 524.6 million Euros. DOCG Prosecco is certainly appreciated in Italy but it’s also valued in the more than 130 countries to which 43.7% of the production from this zone is exported.

Conegliano Valdobbiadene boasts 182 wineries that produced over 92 million bottles in 2018. This wine growing region, with its rolling hills and mild climate, was declared a UNESCO World Heritage Site in 2019. 

For those less expert in the nuances of wine, you will often see DOC and DOCG on wine labels. These indicate the quality and classification of wines in Italy where the wine regulations place DOCG at the top of the quality designations.

DOCG stands for Denomination of Controlled and Guaranteed Origin while DOC stands for  Denomination of Controlled Origin. 
The practice of designating wines began in the early 1960s and the regulations take several parameters into account: production areas, wine color, permitted grape varieties, correct proportions, styles of wine, and levels of alcohol to name a few.

The DOCG wine designation was added in 1980 to introduce a top classification of Italian wines as many felt the DOC label was a bit liberal in its gradings. DOCG regulations are more restrictive where permitted grape yields are far lower and wines have to undergo technical analysis and tasting by officials from the Ministry of Agriculture.

In this area, a special initiative focuses on the enhancement of a precious legacy: “I’m an architect by profession. My grandparents’ home and vineyards happened to be in that part of the Veneto region famous for its Prosecco: Valdobbiadene,” says Rosy Gatto, a prosecco producer in the area. 

“In 2015, my life took a new path. I decided to take over the management of these DOCG hillside vineyards when I inherited them from my grandparents.” 
Rosy tells how she developed her business: “The bottles produced by my vineyards bear the name: ‘Dei Vescovi’, which I chose for the brand, because it evokes the nickname of my mother’s family.”

But no less important is the location of one of her two vineyards, which houses the cellar and the ancient stone dwelling of her paternal great-grandparents, where she welcomes visitors and friends. This is where the story of the two families intersects, together with many historic traces of this little town. 

“My two vineyards cover 2000 and 3000 square meters respectively and date back to the early 1960s. Considering that they are more than 50 years old, they are called ‘historic’ vineyards and still maintain the typical characteristics of a traditional vineyard: a variety of fruit trees, mulberries along the rows, and even the willow from which slender withes are cut to tie up the vines.” 

In addition to their authentic, natural beauty, these historic hillside vineyards are much prized because the vines that were planted and the grafts that were made were done in such a way that they are much more resistant than modern ones and they offer far better grapes which feature more complete organoleptic qualities.
 
“Since I decided to transform our grapes into wine, I have followed the cultivation and maintenance systems aimed at improving the resistance of the vines through precision pruning methods that respect the vine’s physiology. I have reduced the use of pesticides to a minimum and eliminated the use of desiccants. All processes are done by hand, including the harvest.”
 
Visitors will also enjoy soaking in the natural history and architecture of this wonderfully scenic region.
Combined with a wine tour, it is a journey that will be appreciated, savored and be a source of enduring pleasure.

Main photograph: Arcangelo Piai, Landscape of Valdobbiadene Superiore 

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By Maurizio Sala, entrepreneur, president of Amafond 

As the president of Amafond, an Italian foundry supplier’s association which involves approximately 100 manufacturers of essential equipment and auxiliary products for the industry, I am proud to represent Italy’s ferrous and non-ferrous metal foundries. 

Our industry employs no fewer than 6500 workers and our global turnover is more than 1.5 billion Euros, 75% of which is accounted for by the export market. I am also directly involved with the industry myself as the owner of Foundry Ecocer, a leading name in the production and sale of an expansive range of materials required by smelters, cast houses, refineries and a variety of different types of foundries.

I believe that the scope of the global crisis induced by Covid-19 means that most companies, certainly many in Europe and the U.S., will be dealing with the fallout, from a financial or market standpoint, for many years to come. However, although many industries—such as the automotive sector—were already in crisis before the pandemic, we now have to look for the best way forward in the post-covid business environment. 

My opinion is that a courageous and well-structured plan devised by a united Europe will be able to restart our combined economic system and aid our industries in evaluating and innovating new solutions to reinvigorate our economy.
Clearly, the immediate consequences of this global pandemic will be, and are currently, felt by everyone involved in the international production and supply chain: owners, managers, administrative staff and workers have all come under extreme stress and challenges.

What is necessary now is a united and shared effort on the part of each individual, making the most of their specialized skill sets and capabilities. All projects and programs launched in this new environment must be clearly set-out, the goals well-defined, and also shared throughout the corporate structure. A united and motivated team can lay the foundation for an effective relaunch.

To give you all a clearer picture let me cite an example: the sales facet of businesses,  always fundamental, must establish new objectives and a new vision.
This will entail the evaluation of the nearest markets—both domestic and European—focusing on those that may previously have been neglected while companies focused on markets outside of Europe, which have been more profitable in the past.

While these foreign markets may still be viable sources of income, sales will now need to be more targeted. To avoid doing business in the old ‘hit and run’ style, European companies will not only need to learn how to effectively explain the customs and traditions of the products they are selling, but also to become more aware of those aspects of the markets they are selling into.

This will involve a shift in the old mindset and more intensive interaction with these foreign markets to ensure that the economic and information flow becomes healthy and sustainable for all involved.

Italy, Milan, Corso Venezia street during COVID-19 outbreak — Photograph: Westend61

Let me share with you a brief sketch of the steps currently being taken by my company to cope and move forward in this difficult time.

Our business is of strategic importance for our country.
Thankfully, because our activities fall into that category, we’ve been given the opportunity to maintain continuity in our daily business. We were closely following what was happening in China through the media and we were able to plan quickly and take effective action.

Before a formal, national protocol was issued, we had the foresight to organize our activities in a way that safeguards and maintains the health of our employees in these trying circumstances.

In addition to adopting individual protection measures for our staff, we swiftly revolutionized many other aspects of the way we work.
We divided the working day into two shifts of eight hours each. Teams were also equally distributed in terms of the hours they worked so that it was possible to maintain appropriate distances and other safety measures. Our office administration involves keeping a single staff member in the office (per shift) while the others work remotely.

Everyone was kept abreast of the new rules and protocols.
However, rather than just ‘pinning a memo to the company bulletin board’, each and every employee was thoroughly briefed about the dos and don’ts of this new way of working, which ensured smooth operations.
We also introduced a simple and effective ozone air-purification system for many environments including our offices, laboratories, and small production areas, which I feel should actually have been considered earlier.

Thanks to our readiness and quick action, and the updating of our working methods, all of our employees are behaving very responsibly and, just as important, they feel secure. I think we have managed to establish a very effective system.

Of course for this to continue, financial or economic interventions at the government level are needed just as much as a motivated staff. Above all we feel no shortcuts should be allowed in order to emerge from the current crisis both stronger and better prepared for the future.

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Riccardo Pasinetti is the Commercial Director of Lucchini RS Railway Division, the global multinational for sustainable mobility progress based in Lovere (BS), which produces high-end rail components for high-speed, locomotives, passenger trains, trams and subways.

The LRS Railway Division is involved in various projects in the Arabian Gulf both as an Original Equipment Manufacturer (OEM) and for the provision of maintenance. For desert environments, the most inhospitable in the world, LRS Railway Division has developed innovative wheels in a special steel known as Sandlos®.

Characterized by extreme temperatures, desert environments are also known for sand, which is among the most aggressive natural elements when it comes to railway applications. In what is known as ‘three-body abrasion’, generated by the presence of sand on the wheel interface, a third element (sand) interferes with the behavior of materials subject to contact wear.
Ordinary maintenance to remove sand from the wheels is not enough: for this reason, LRS developed Sandlos®, a ‘specialized’ steel that creates innovation, designed to protect wheels in the desert and reduce the speed of wear.

Which projects is Lucchini RS working on in the Arabian Gulf as an OEM?

LRS confirms its involvement in OEM projects with Alstom, for the Dubai Metro, and for the new EXPO2020 trains, of which we are not exclusive suppliers. Another project in which we are involved is the high-speed Haramain (Medina-Mecca) train in Saudi Arabia, in collaboration with the Spanish train manufacturer Talgo. In addition, we are working on the Riyadh Metro, where LRS provides wheels and axles for trains made by two great builders: Siemens Mobility and Bombardier Transportation.

And in terms of maintenance provision?

For the after market we are offering Sandlos®. The supply of spare parts for the Dubai Metro (already in service) should begin in about 24 months. The fleet is of interest to LRS in terms of proposing innovative services for optimized maintenance.

What was your impression of Middle East Rail 2019?

Middle East Rail 2019, where LRS was a major presence, was positive: we have definitely noticed an increase in attendance when compared to the last 2 years. This higher turnout is perhaps due to a general positive trend in the GCC economic system and to the fact that the date of Expo 2020 is fast approaching, which makes the players in the area more actively involved. There is also a lot of expectation in regards to the new infrastructure projects.

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