Italy’s industrial sector is raising serious concerns about competitive decline, urging action from Europe as a whole. There has been a joint effort between industry leaders and trade unions to create and implement policies that support manufacturing, lower operating costs and provide longer-term stability.
This is not an isolated problem in Italy, but rather represents a major challenge for all of Europe as industries face growing pressures due to global competition, increased production costs and labour shortages.
Rising Costs and Global Competition
A major concern for all sectors of the manufacturing industry is the rising cost of production. Within the last couple of years, the cost of energy, raw materials, and compliance costs has significantly risen. At the same time, manufacturers are being subjected to global competitors who are able to provide their customers with lower costs to produce than they are able to produce for their customers in Europe. Therefore, European manufacturers are finding it difficult to sustain their current level of competitiveness in today’s global economy.
Due to the competitive pressures being experienced by manufacturers, maintaining or improving productivity, while at the same time managing current production costs, has become increasingly more difficult.
The Additive Workforce Challenge
In addition to economic pressures, manufacturers face pressures that are caused by a lack of available workers. This includes finding qualified labour in a number of industries, particularly manufacturing, engineering, and technical disciplines.
The ageing workforce and limited availability of local talent have made it difficult for companies to rethink their hiring strategies. International recruitment is beginning to become one of the solutions for companies to have access to workers from outside the country.
Call for Coordinated European Response
Industry associations and trade unions in Europe are calling for an EU-wide coordinated response that focuses on:
- Supporting industrial production
- Reducing energy and operational costs
- Improving supply chains
- Providing access to qualified technical talents
Developing a more balanced environment for European industry to compete globally, while providing a stable environment for industry to operate in the EU, will help Europe to avoid losing production to other countries, as well as help to produce stable jobs and healthy economic growth for its companies.
Impact on Employers and Hiring Strategies
Employers are finding that by being responsive and adaptable in their workforce planning, they can keep up with the constantly evolving landscape of workforce needs.
Companies have begun:
- Looking outside of their local markets for talent
- Searching for cost-effective ways to source their workforce
- Implementing more systematic methods of recruiting
As companies look at how to respond to competition in the global economy, employers have found that finding qualified candidates has become a major area of concern when maintaining a competitive edge. In a global economy, delays caused by hiring delays, or skill shortages will negatively impact an organisation’s ability to produce goods and services in a timely manner.
Growing Importance of Global Recruitment Support
As the process of hiring becomes increasingly complicated, many employers realise they can work effectively with recruitment partners to address workforce issues.
A prime example of this method of working together for the purpose of addressing an employer’s need for a skilled worker is Dynamic Staffing Services (DSS), which has placed over 480,000 candidates globally within over 30 countries, as well as providing many organisations with skilled workers through international markets.
By working with DSS or other recruitment partners, employers have access to:
- Pre-screened candidates
- Reduced timeframes for hiring
- Management of cross-border or international recruitment
Accessing a recruitment partner this way will allow the employer to focus on its core operations while also ensuring that there is continuity of the workforce.
Looking Ahead
Italy’s production industries have raised many issues regarding the general direction of Britain’s economy. Rather than just being driven by cost, competitiveness has become about how well your business can change quickly when requirements to do so arise. Employers will therefore need to establish workforce strategies that provide them with a workforce that is both resilient to change and combines local and international hiring capabilities.
As Europe looks ahead, we see that companies that develop flexible and scalable workforce solutions will have a competitive advantage in overcoming any future challenges they may face. If your business is focusing on enhancing its workforce strategy and developing a global workforce, you can contact us at clientservices@dss-hr.com!
