Assomac Assembly 2025: aggregate to compete, innovate to resist

Quality, skills, technology. These are the pillars on which the Italian footwear, leather goods and tannery machinery sector is called upon to build its relaunch. The General Assembly of Assomac on 20 June 2025, hosted at the Kilometro Rosso Innovation District in Bergamo, offered a complex picture, but also outlined strategies to overcome difficulties and project into the future. The 2024 forecast showed a drop in turnover in the sector of 12% to around EUR 575 million. This contraction, which affects both the domestic and export markets, is part of a global context of geopolitical instability, inflation, shrinking consumption and tightening trade barriers.

A SECTOR SUFFERING, BUT WITH STRONG ROOTS

Mauro Bergozza, President of Assomac, opened the proceedings by emphasising the gravity of the situation but also the sector’s potential to react. ‘Our sector is experiencing a phase of deep suffering, but not irreversible,’ said Bergozza. He emphasised that the quality of Italian technologies, the solidity of know-how and the drive for innovation must once again become the engine of competitiveness. To achieve this, investments in digitisation, automation, sustainability and, above all, a shared vision between companies, institutions and the education and research system are needed. “We must be ready to play a system game, otherwise we will remain on the margins of the global market.”

Despite the difficulties, Italy is confirmed as the technological leader in the high-end segment at an international level, maintaining a 30% share of the sector’s world exports in 2024. In particular, Italy holds 52% of the global export of tannery machinery and 35% of that of leather goods machinery. More penalised is the footwear segment, which stands at 12%, in a competitive context dominated by the growing Chinese presence: Beijing has strengthened its industrial role in the Asian area. President Bergozza emphasised Italy’s leadership in tanning, supported by the high technological value of machinery and tanning chemicals. However, leather goods and footwear are under increasing pressure from Asian producers, particularly China, which produced 12.3 billion pairs of shoes in 2023, accounting for 55% of the world total (87% if we consider the whole of Asia).

THE MACROECONOMIC CONTEXT AND GLOBAL CHALLENGES

Maurizio Tarquini, Director General of Confindustria, provided a broader perspective on the economic context, acknowledging the ability of Italian companies to navigate short and traumatic cycles. He recalled how Italy, in spite of numerous crises (from 9/11, to the Lehman Brothers chaos, to national crises, to Covid, to the war in Ukraine), has become the fourth largest exporting country in the world over the past two decades, maintaining dominant positions in many niche sectors. ‘If we see how we have come through these crises, we should be really proud, it means that we have an edge,’ said Tarquini. He emphasised that Italian companies, even in a changing and complicated environment, have shown that they are able to adapt, always finding the right way through increased market pressure, new markets, innovation and integration.

Italy’s strength lies in its resourcefulness, with a 60% increase in the share of exports of goods in 25 years. However, Tarquini highlighted the lack of adequate political accompaniment to entrepreneurs. “Entrepreneurs are normally not accompanied, those who do business are not accompanied by a policy that supports them,” he said. He lamented the slow authorisation processes and the difficulties in accessing finance and infrastructure. The cost of bureaucracy and regulations in Italy is twice as high as in Germany, which also complains about its bureaucracy. Tarquini announced that Confindustria has submitted 80 cost-free simplification measures to the government, of which only 14 have been approved so far. ‘We are proposing solutions almost obsessively, and we will insist until we are listened to,’ concluded Tarquini, reiterating the importance of a policy that believes in companies, the real engine of the country.

Erika Andreetta, Partner at PwC Italy and EMEA Fashion & Luxury Leader, confirmed the downturn in the markets, with forecasts of a further decline after the summer, due to geopolitical uncertainty that slows down investments and shifts consumption towards essential goods. He noted how the large French groups are trying to recover volumes with more aggressive pricing policies in the entry price categories (perfumes, cosmetics), which however do not involve the Italian fashion supply chain. Andreetta pointed out that luxury products are also suffering from excessive price increases and a change in consumer preferences, which favour experiences rather than the purchase of goods. He stressed the fragmentation of the Italian supply chain, with companies that on average have few employees, and the need to address issues such as national collective agreements and aggregations. He also mentioned the shift to ‘see now, buy now’ models by big brands, which severely reduces production batches, creating peaks of work followed by decreases for the supply chain, thus making it difficult to set production capacity.

INNOVATION AND DIGITAL TRANSFORMATION: THE WAY FORWARD

Giuliano Noci, Professor of Strategy and Marketing at the Politecnico di Milano, emphasised the need for a profound digital transformation if we want to ensure the future success of Made in Italy. He acknowledged the ‘positive bias’ Italy enjoys in the world, thanks to the quality of our traditional manufacturing. However, he warned that past excellence does not guarantee future excellence. Noci criticised Italy’s low investment in innovation (1.4 per cent of GDP, compared to 2.5 per cent in China and over 3 per cent in other countries) and in digital, where Italy is fourth to last in Europe in terms of skills. “The crux of the matter for any Italian industry is called digital transformation,” said Noci, describing it as a largely unfinished priority.

He argued that the problem is not only Italian, but also European, particularly for Germany and Italy, the ‘key points of European manufacturing’ that are now in the news as the ‘main problems’. Noci used the example of the German automotive industry to illustrate how a ‘manufacturing cultural legacy’ can impede the proper orientation of investments. He reiterated that Italy’s extraordinary ability to transform physical matter into manufactured goods is no longer sufficient. It is essential to integrate a new operational cycle: data management, with artificial intelligence as the completion of the digital transition. “Artificial intelligence is like air, it will enter every crevice, we will not escape artificial intelligence,” he said.

Noci outlined two key revolutions: digital transformation, which will lead companies to become ‘service providers’ rather than just machine suppliers, and an ‘ability to express an integrated cycle with our business customers’. This approach of ‘customer intimacy’ and operational integration is the only hope to compete with Chinese manufacturers, who will continue to sell machines at a lower cost. “We will no longer be able to be in the market as sellers of machines, but will have to become intimate with our customers as suppliers who can take care of our customers’ products in a broad sense. He concluded that luxury, although in a phase of change, is not ‘in trouble’, but is redefining the type of products required: customisation, new materials, environmental sustainability.

Mauro Bergozza emphasised the need to overcome old patterns and habits, promoting Automation, Creativity and Technology (ACT) as strategic levers for the relaunch. He emphasised the importance of working in a supply chain and with a shared vision to tackle the markets. Italy’s total export of ACT technologies has reached over 32 billion euros, with an estimated untapped potential of around 8 billion. Among the priorities that emerged from the Assembly, Bergozza mentioned greater access to subsidised finance tools (such as Industria 5.0 funds), support for exports in key markets (Africa, India, South-East Asia, South America), investment in technical training, and the acceleration of digital innovation processes. He launched a proposal for a major international promotion programme for medium technology.

THE NEED TO SYSTEMISE AND AGGREGATE

The concept of ‘working as a system’ was a leitmotif of the Assembly. Maurizio Forte, ICE Agenzia Central Director for Export Sectors, reiterated ITA – Italian Trade Agency’s mission to accompany companies in exporting, investing resources where they can yield the most, in collaboration with the Confindustria associations. He praised the industry’s ability to do ‘supply chain work’, citing the example of the pooling of SIMAC and Tanning Tech exhibitions. Forte expressed confidence in market opportunities, particularly in Africa, where ‘you sow today to reap in 10 years, but if you never sow you will never get a harvest’.

Luca Sburlati, President of Confindustria Moda, the Confindustria Textile and Fashion Federation, spoke of a ‘very strong crisis’ in the Tuscan leather goods district and a general contraction in the textile, fashion and leather products system, which will drop from 104 to 90 billion in turnover between 2023 and 2024, with a further -20% in the Tuscan district in the first three months of 2025. He pointed out that China is creating its own brands and accessible luxury, while the price increase of some brands has led to a decrease in demand. Sburlati also agreed on the need for a profound change, stating: ‘If we reason as we have reasoned up to now, we are all dead, including Italian brands’. He proposed a ten-year national strategic plan for the fashion industry, including Assomac, and horizontal work between the categories. He called for a shift of private investment towards Italian companies, suggesting a minimum tax advantage for pension funds investing in Italian companies.

Sburlati criticised the tendency of sourcing managers to reduce purchasing costs, which induces ‘sub-standard’ practices that only have the effect of lowering quality. He cited a personal example where he refused to work with a brand that imposed prices that were too low: ‘Either we have the courage as a supply chain to respond even negatively to certain outrageous proposals or we will not get out of it’. He reiterated that technology, including artificial intelligence, must go beyond mere production, offering services such as operations management and quality control. He concluded with the wish to work in a more united manner, recognising that ‘if I had attended this assembly 10 years ago, I would have found you all competing with each other, today you are one supply chain and this is a strength to be developed’. He finally recalled the importance of sustainability as a value and barrier to entry for producers from other parts of the world.

Mauro Bergozza also returned to the topic of aggregation, reiterating that competitiveness is built together, with business networks, strategic alliances and investment in research and development. Trust is important, but alone it is not enough; what is needed is a concrete transformation of expectations into turnover. He emphasised that the fragmentation of the sector, with over 70 per cent micro and small family businesses, limits the ability to invest in innovation, digitalisation and internationalisation. “Aggregating through mergers, acquisitions or alliances is no longer an option, but a necessity to survive and grow”. He cited successful M&A examples in other sectors and the importance of openness to outside capital for growth. He concluded: ‘We are too small to compete’, and urged to address the issue of ‘industrial dwarfism’.

Guido Cami, President and CEO of Industrie Chimiche Forestali, shared his company experience in a period of ‘incredible turbulence’. He recounted how his company, founded in 1918 and a manufacturer of adhesives, diversified its outlet sectors (footwear, leather goods, automotive, flexible packaging, industrial applications) and took over other companies to make ‘critical mass’. “I believe that size matters in an increasingly complicated external environment,” said Cami. He described total confusion due to Covids, wars, commodity shortages, rising energy costs and inflation, which have reduced purchasing power and shifted spending priorities. He stated that he had never seen such a chaotic situation in 40 years.

Cami espoused Noci’s vision of digital transformation, calling it an ‘investment in technology’ and emphasising how his company has transformed itself into a ‘service provider’ rather than just a sticker manufacturer. “We are a seller of a service that to customers solves the problem of sticking and holding two surfaces together.” He emphasised the value of Italian service, friendliness and skill, elements that Chinese competitors cannot replicate. He reiterated the importance of staying upmarket. The company’s larger size allows it to sustain fixed costs, invest in research and development (24 people out of 153 employees) and provide service. “If you are small, no matter how good you are, you still have to provide certain solutions to customers, but costs will be higher than revenues and margins almost non-existent. To get around this problem you have to grow in size.”

Salvatore Majorana, Director of Kilometro Rosso Innovation District, presented the district as an ‘agent of technology transfer’, dedicated to facilitating the exchange of knowledge between industry and the world of innovation. He highlighted the extraordinary quality of Italian scientific research, despite limited investments, and its ability to have an impact at global level. Kilometro Rosso brings together more than 85 companies and research centres, with the University of Bergamo, the Mario Negri Institute and Confindustria Bergamo among its establishments. The park attracts and retains young talent, with an average age of around 30. Majorana illustrated Kilometro Rosso’s approach to the digital industry and circular economy, with technological families such as artificial intelligence, robotics, sensor technology and additive manufacturing. He cited successful examples, such as the Intellimec Consortium, which brings together companies and researchers to develop technological solutions, and the joint laboratory with the European Institute of Technology to bring state-of-the-art robotics to companies.

THE ROLE OF FINANCE IN GENERATIONAL CHANGEOVER AND AGGREGATIONS

Alberto Russo, Founder and Managing Partner of Russo De Rosa Associati, addressed the crucial issue of company size, quoting President Bergozza’s phrase: ‘we are too small to compete’. He observed a private equity market that is very active in creating industrial clusters and platforms, but also a growing interest on the part of industry and commerce in acquiring competitors in order to grow in size and expand their product and service offerings to respond to structural changes in the market and internationalisation. Russo noted an increase in SMEs seeking acquisition partners or intending to sell a stake with a preference for long-term projects. Currently, more companies want to sell, but the number of those who want to buy is growing steadily, driven by the market’s need to increase their size and look beyond the Italian borders. He emphasised the importance of a correct assessment of the company’s value and contractual structures that guarantee the governability of the transaction in the future. Although entrepreneurs often prefer the industrial investor, because he brings expertise as well as capital, the attractiveness of private equity has grown, with deals now considering EBITDA even below EUR 5 million, down to EUR 2-3 million, with an average multiple of around 6-6.5. This is a change for the market, which now denotes a greater propensity to create specialisation platforms through holding companies that generate value through the combination and capacity for synergetic projects.

Micaele Pietro Golferenzo, Private Banker at Intesa Sanpaolo Fideuram, described the generational transition as a ‘bellyache’ moment for entrepreneurs, often procrastinated. The greatest difficulty emerges when the children show no interest in continuing the business or, worse, are not deemed up to it. Such situations easily lead to a discontinuity that can be managed through the entry of private equity, venture capital, or industrial alliances. Golferenzo pointed out that banks, when assessing financing, look not only at the company’s current solidity and size, but also at its future and continuity strategy. The presence of a manager, for example, is seen as a guarantee of continuity and contributes to a better rating, resulting in access to more funds and lower interest rates. He concluded that, while there is not yet an entirely clear growth of companies looking at generational handover, there is a growing awareness of the need to address these issues, even if talking about ‘survival’ instead of ‘growth’ can generate unease.

PROSPECTS

The Assomac General Assembly highlighted a sector in deep crisis but determined to react. President Mauro Bergozza reiterated the urgency of joint action at European level to defend and relaunch the continent’s manufacturing identity. He invited all members to contribute actively to consolidate the sector’s representation and avoid self-referentiality. He announced that Assomac is strengthening its structure with the opening of a new office in Milan, closer to the supply chain, Federmacchine and the world of consultancy and finance.

‘The challenge ahead of us is complex, but also full of opportunities,’ said Bergozza. The European fashion and technology industry can become a protagonist again if it knows how to join forces, innovate, and open up to the world. Assomac is ready with an increasingly European vision and a clear strategic programme. But the future is built together: companies, institutions, young talents and employees. It is essential to strengthen the dialogue between companies in the sector in order to represent the value of Italian medium technology with a united voice to the Italian and European governments, in order to obtain adequate industrial policies and concrete support instruments.

“The time to act is now,” Bergozza concluded, quoting Bank of Italy Governor Fabio Panetta: “Innovation does not happen by chance. We need an ecosystem that stimulates competition, spreads ideas and reduces asymmetries between financiers and entrepreneurs’. The appeal is to build this ecosystem together, for a Made in Italy that, although accustomed to difficulties, can continue to be competitive and a leader in the world.