Roncucci&Partners is a strategy and operations consulting firm specializing in designing and implementing business internationalization paths. Thanks to its seven offices around the world and a proven track record, it supports companies that want to grow in international markets, bringing Made in Italy to the world.
Roncucci&Partners was present as a partner at the Tornitura Show in the field of internationalization and organized, in addition to a round table, two seminars with a twofold objective: to present the performance of Italian mechanics in international markets and to discuss what it means to take a product to foreign markets in terms of controlling business variables.
The first seminar entitled “Let’s internationalize, but where? Trends and Future Scenarios for the Development of Italian Mechanics in the Global Market,” held by Stella Occhialini, Senior Project Manager of Roncucci&Partners, and Federico Rubini, Project Manager of Roncucci&Partners, focused on presenting the performance of Italian mechanics in international markets, by identifying the top 50 countries with reference to the demand for products in the mechanics sector. A large representative sample of Italian mechanics was considered for the analysis.
Based on the data presented, it was possible to observe that in 2022 the world imported almost 400 billion euros worth of mechanical products and that Italy ranks with an important market share of slightly more than 7%: this means out of 100 exported products, 7 are Italian products.
Among the world’s importing countries we find, to no surprise, China (with a market share of 16. 5), the U.S. (11.9%), followed by the rest of the world: Asia with South Korea and Tawain, Europe with Germany and France, natural outlet countries for our exports, and finally Vietnam, Canada and India, countries that Italy knows but does not export to regularly and to which it could turn in the future.
As for the importing countries of Italian mechanics, we find the US, France and Germany: out of 100 mechanics products exported from Italy, 13 of them end up in the US. France and Germany have a market share of 6.5% and 6.2%, respectively. China figures as the fourth largest importer of Italian mechanics, as shown in the graph.
By contrast, the competing countries in the export of mechanics are Germany, Japan, China, and the US. In this ranking of the top exporting countries, Italy ranks fifth, with a market share of 7%.
Moreover, the analysis carried out allows us to identify growth trends: in the first place for the Italian product is the U.S. market, then France and Germany. These do not include China, which appears saturated with Italian mechanics goods. Markets to pay attention to and study, as highlighted during the webinar, can be Turkey, Switzerland, Brazil and Mexico.
This study was conducted through an analytical tool by Roncucci&Partners, the GTO, Global Trend Overview, based on the elaboration of data from 54 international databases, which allows the identification of the main target countries for the company and supports management in making strategic decisions regarding the internationalization process.
The GTO examines for each product, through its customs code, the fundamental key variables when choosing markets, and identifies the 50 best performing markets in terms of demand, growth trends, and accessibility.
As emphasized during the seminar, it is important to use these tools and think about these data in an uncertain and undefined historical moment. In this scenario that creates concerns, the Italian machining industry remains excellent: myriad micro, small and medium-sized companies work with a high level of expertise and manage to produce very specific and particular mechanical parts, often difficult to make, and they do it for much larger, international client companies that require extremely high machining standards.
Gabriele Anzalone, Director of the Management Consulting Unit of Roncucci&Partners, and Enrico Mirotti, Chief Operating Officer of Roncucci&Partners, brought to the Tornitura Show the “Executive dashboard for Internationalization – You can’t manage what you can’t measure,” a control tool capable of giving an up-to-date indication of company performance.
Taking a company to foreign markets necessarily implies a quantum leap in the ability to direct, manage and monitor the company. This leap becomes essential in the reality in which our companies move today, which is very complex and constantly changing. We move in a volatile competitive environment of ” remixing” global political geographies, highly innovative and with input prices that can fluctuate greatly. It is a phase of strong change that opens up new opportunities and naturally brings with it risks.
The entrepreneur who wants to go abroad will have to manage new variables or already known variables but which present greater complexity: the level of satisfaction of foreign customers must be monitored according to different standards from those in Italy or delivery times in even remote geographic markets must be looked at. Logistics becomes more “extensive” and therefore more articulated, and on the price front, other elements need to be monitored: product prices must also take into account exchange rates and inflation in the outlet market. These are a few examples of the different games those operating abroad must know how to manage.
To carry out internationalization successfully, it is necessary, as Gabriele and Enrico point out, to identify the best strategy through which to penetrate the market, position oneself coherently, map the risks, identify the main cost items to be incurred, and monitor the progress of the project by having all the key variables under control.
Thus, not only planning, but also managing and monitoring. All this can be done by building the dashboard, a system of key indicators, Key Performance Indicators (KPIs), that help the company monitor the course of the project.
The dashboard is an integrated system in which all data and all KPIs are visible. It is built through a functional analysis in which key dimensions and variables to be monitored for business success are identified and major business value-generation processes are mapped. Next, you determine what indicators are needed to monitor these variables and how to build the data collection and systematization system.
The dashboard, which Roncucci&Partners presented at the Tornitura Show, is a strategic tool that allows us to make decisions and understand whether these decisions are the right ones.
Enrico Mirotti presented a concrete case in which internationalization could only occur at the end of a process of production data analysis. The data analysis allowed the identification of critical production issues that kept costs high and hindered increasing production capacity.
Data and KPIs that needs to be monitored, when properly analyzed and made available to people in the company involved, they put them in a position to understand what the real problems to be solved are.
Data and KPIs that enable the company to guide the business, even in today’s rough waters, into new markets and new opportunities.