A survey of 30 representative companies from the Italian Chair District was conducted to assess their state of health over a period of time extending from 2003 to 2009, and to map out the current situation and future developments. This two-track survey was conducted by AREA Science Park through modeFinance, which specialises in the evaluation of creditworthiness, and the Centro di Competenza Legno&Arredo (Wood & Furnishings Competence Centre), part of the Innovation Network project.

The data is being presented today in San Giovanni al Natisone (Udine), at the conference entitled L'efficienza delle aziende nel distretto della sedia (The efficiency of companies in the Italian Chair District), organised in partnership with CATAS S.p.A.

Starting with the assessment of the macroeconomic performance, a negative trend was recorded during the period under consideration, reaching its lowest point in 2009. However, the comparison with the latest data from 2010 has produced some good news, showing signs of a turnaround. In fact, the 2009/2010 comparison shows a 5.8% growth in the average turnover of the sample group, a doubling of the average gross operating margin (from 2% to 4.7%), and a 50% increase in the number of companies that ended the year in profit compared to the previous year.

This data means that, from 2009 to 2010, the average rating of the cluster went up one class, moving from B (signs of vulnerability) to BB (balanced situation). Moreover, by comparing the performance of the cluster from 2003 to today with the same sector in Spain, its traditional competitor, the Friuli-based district appears to be in a better situation today than its Spanish counterparts.

The analysis carried out by the Centro di Competenza Legno&Arredo, instead monitored developments in the efficient use of the cluster's production resources over the same period of time. Financial data was analysed, particularly entries in the profit and loss account relating to business operations. By applying a mathematical algorithm, it assessed relative efficiency in the use of the main production factors (human resources, plants and machinery, raw materials and third party services), taking the proceeds (production value) into account.

A general trend towards less efficient use of production resources emerged. When analysed in detail, the production resources showed an average decline in the incidence of some cost items, such as raw materials (-3% from 2003 to 2009 for the group of companies monitored), probably due in part to optimisation policies and strategies. By contrast, there was an increase in the incidence of fixed costs in confirmation of the period of financial crisis affecting most production sectors in Italy.

"Both the analyses," commented Roberto Grandinetti of the Department of Economic Sciences at the University of Padua, "help us to understand that, if the age of industrial districts as environments able to protect the businesses contained within them through their external economies has come to an end, this does not mean the end of the district firms themselves. By this I mean that businesses that have adopted sustainable strategies in order to compete in global markets are now withstanding the pressure of a recession of significant size and duration. This is shown by the analysis (along with many more findings). Talking about signs of recovery for everyone is wrong: we need to carry out a thorough analysis of the reasons why some companies are able to navigate such tempestuous waters (markets) as those we are currently seeing (and it is deceptive to think that these waters may be calmed in the future), by looking at companies that have equipped themselves in such a way, perhaps outside the district."

"A scientific analysis of the positioning of the Italian Chair District compared to other national and international competitors," highlights Giusto Maurig, Chairman of ASDI SEDIA, "is certainly a useful tool to enable those who, like ASDI SEDIA, are working to implement communication and quality improvement strategies for the companies in the district, helping them to identify development paths that will enable them to overcome this phase of general financial crisis. I am thinking, for example, of the Filiera ISO 9001 (ISO 9001 Supply Chain) and FSC projects, and the mark of local designation of origin, which are among the lines that guide the work of ASDI and have generated considerable interest from companies in the District. In fact, here at ASDI we believe that partnership between companies, working towards new certifications and incisive and effective promotion are fundamental components for a new phase for the District."