Exports are dropping, a bad quarter for the firms.

At the end of 2011, Varese was still the only industrial province of Lombardy in a positive situation. The figures about the manufacturing production in the first quarter of 2012 show a strong fall in productivity (-5.6%). The analysis made by Unioncamere of Lombardy and released by the Chamber of Commerce; on the occasion of the tenth meeting for the Day of Economy promoted nationally by the national Chamber of Commerce, which in Varese has seen the meeting of the economic observatory ; highlight a negative situation, one of the worst in the region.

A drop linked to the slowdown of the exports, which had been up and  supported the activity of the firms in Varese, for  all the last year; giving them the only support on which they could stand to avoid the spread of the crises. So, the amount of turnover, coming from foreign countries, fell from 39.2% of the forth quarter  to 32.3 % in 2011. This is about the manufacturing firms  which work in the province of Varese, and they are part of sample on which the economic  enquiry was made. The results of the enquiry are already available on the website of the Chamber of Commerce. www.osserva-varese.it

THE CRAFT INDUSTRY IS GROWING – As a result of the decline of the industry, emerges an attempt of turnaround for the craft industry, which has been the most suffering sector for long: we are still far from a positive situation, but the       -3.7%  of the production in this quarter is at least better than the former -4.3% and, above all it interrupts a decline started at the end of 2010. Another signal is the pick of the foreign orders for the next months: the international markets will return back to be reactive for the firms, which advert a increase of the foreign requests of at least 15%.

This indicates that, maybe the economy of Varese doesn’t risk decreasing, like for example the same that happened at the end of 2008 and for the whole of 2009. The indicator concerning the craft industry and the foreign orders often bring forward the firms of Varese: the last figures indicate a settlement on a platform from which we could rise as soon as the European economy will start again.

REDUNDANCY FUND – In this scenery there is also a situation of a labour market, which is suffering. After a good start in 2011, all the  safety valves at the beginning of the new year have started a negative trend. The hours of the redundancy fund have increased from 21.2%  respect to the same period 2011: it is calculated that the  authorised interventions are more than 8,000 employes. It is the same thing for the mortality (plus 4.6% of the first quarter) has reached 9,000 jobs. This impresses on a tax of unemployment which is more than 7.7% for a total of 32000 people, which they are looking for a job.

MORTALITY OF THE FIRMS – Negative signals also from the number of the firms, that came again under 64 thousand. As a matter of fact, the active firms in Varese are now 63,992. In view of 1,528 new registrations in the Firm Register that took place in Chamber of Commerce, in the first quarter of 2012 there were 1,916 suspensions of activities.

CREDIT CRUNCH – In conclusion, talking about credit, the borrowing of the firms are decreasing, testifying the difficulties they face in the access to funding. In particular, between June and December 2011, jobs, in general, decreased by 1.4% (national level by 0.3%). Breaking down the data into two parts and observing the part about the firms, the situation worsens in the firms with at least 20 employees, where it is registered a reduction of 4.6% between June and December 2011 (by -1.8% at Italian level), and in those with less the 20 employees, with a decrease of 4.2% (by -2% the national average).