Italy is globally renowned for its artisanal expertise in industries like fashion, leather goods, and furniture. The “Made in Italy” label signifies superior craftsmanship, luxury, and authenticity, making products highly desirable in global markets, especially in premium and luxury segments.
Italy’s economy benefits from specialized regional hubs, such as textile production in Prato and leather manufacturing in Tuscany. These clusters create efficient supply chains, offering businesses access to skilled suppliers, advanced materials, and streamlined logistics within the country.
Italian manufacturers prioritize innovation, blending traditional craftsmanship with cutting-edge technology. This is particularly evident in sectors like automotive, furniture, and luxury goods, where Italian design and engineering are synonymous with style, functionality, and superior performance.
Sourcing from Italy ensures adherence to strict European Union regulations regarding sustainability, product safety, and labor standards. This makes Italian products highly reliable and easier to import into other Western markets without compliance issues or unexpected regulatory hurdles.
01.
Italy has higher wages and operational costs compared to Asian and Eastern European sourcing hubs.
02.
Italian manufacturers prioritize premium craftsmanship, making it difficult to find low-cost, mass-production options.
01.
Italy has a difficult business environment, ranking 58th for ease of doing business and 98th for starting a business out of 190 economies, with high costs and lengthy procedures.
02.
Starting a business costs 13.8% of income per capita, the highest in the EU, due to notary fees and taxes.
03.
Cities interpret national laws differently, meaning regulations, permits, and costs vary significantly by location.
01.
Italy has a complex tax system, ranking 128th in paying taxes, requiring 14 tax payments per year, including corporate tax, VAT, and payroll taxes.
02.
Italy has a heavy tax burden, with businesses paying a total tax contribution of 59.1% of profit, one of the highest in Europe.
01.
Over 90% of Italian manufacturers have fewer than 10 employees, making large-scale production difficult.
02.
Smaller firms often lack automation and efficiency, leading to higher costs and slower production cycles.
01.
Italy’s workforce is shrinking due to low birth rates, leading to skilled labor shortages in key industries.
02.
Employment laws favor strong worker protections, making it costly and difficult to hire or restructure workforces.
01.
Italy imports a significant amount of gas and electricity, making manufacturers vulnerable to price fluctuations.
02.
External energy shocks (e.g., Russia-Ukraine war impact on gas prices) can increase operational expenses.
01.
Italy’s construction permits take 198 days and 14 procedures, delaying infrastructure projects due to bureaucracy, regional differences, and high costs.
02.
High port fees, customs duties, and transit times increase Italy’s import/export costs, with fuel prices, congestion, and labor strikes worsening delays.
01.
Italy ranks 122nd globally in contract enforcement, with commercial disputes taking an average of 1,120 days due to legal backlogs and inefficiencies.
02.
Dispute resolution times vary by city—Turin takes 860 days, while Reggio Calabria takes nearly twice as long, causing unpredictability.
01.
Business success in Italy depends on long-term relationships and trust, often requiring local representation to facilitate introductions and negotiations.
02.
Italian negotiations are deliberate and time-consuming—rushing decisions can weaken your position, as trust and relationship-building are highly valued.
