Companies must react with vigor and creativity, designing new strategies out of the box

Business mood and reshoring trend following Covid and the war in Ukraine

Giuseppe Ursino

Giuseppe Ursino

In recent weeks the mood of companies has been rather low, confidence in the future has been lost and you know sentiment in the economy is a very impactful figure.
For a year with Mario Draghi in government and considering the expectations on the Recovery Fund a bit of optimism had been created which has now waned, both because the parties are making life difficult to the reforms advocated by the former ECB president and because about the Next Generation EU little concrete has been seen in the life of companies.
Surely a fact is that the resilience of supply chains is now increasingly being taken care of in companies. While before the 2 black swans, Covid and invasion of the Russian armed forces in Ukraine, companies counted for competition above all on volumes, economies of scale and specialisation, now they are beginning to give strategic value to a relocation of purchases on a continental base, in order not to be blown away as has happened in the last 2 years. There will probably be a tendency towards a form of European self-sufficiency and reshoring could become a strong trend.
Moreover, the significant increase in the cost of energy and other raw materials, from metals to food, contributes to worsening the context, creating a scenario with high inflation and low growth, the worst, the stagflation.
To all this companies must react with vigor and creativity, designing new strategies “out of the box”. Certainly some will have to invent new business models in order not to blow up. The challenge is tough, but the Italian business world, which is made up of small and medium-sized family enterprises, will once again be able to overcome yet another sharp bend.

If you want to get in touch with Giuseppe Ursino this is his LinkedIn profile

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