Technological expertise, flexibility and cooperation help Slovak entrepreneurs to establish themselves on the Apennine Peninsula
Slovak companies assert themselves on the Italian market by quality rather than quantity. Their success is based on specialisation, technological level and the ability to adapt to partners’ requirements. These factors allow them to enter supply chains and build long-term business relationships. Italy is one of Europe’s largest industrial markets, where competition is extremely fierce.
Stable presence
Slovak companies already have a stable position on the Italian market. Their presence is visible in sectors where the technological level and the ability to offer specialized solutions are decisive. Often it is the supply of components or technological units that become part of larger industrial projects. According to Matúš Šárský, Director of the International Relations Department of Eximbanka , Slovak companies have taken advantage of their ability to respond flexibly to the needs of their partners. The most significant results are achieved in the automotive industry and its sub-supply chains. Mechanical engineering, electrical engineering and energy technologies also play an important role. These sectors are the traditional pillars of Slovak industrial production and naturally follow the needs of the Italian market. In addition, they are visibly making inroads in some segments of the defence industry.
The growth potential of Slovak companies in Italy is mainly related to technology-intensive projects, especially in the fields of energy, infrastructure and the defence industry. European economies are increasingly investing in the modernisation of energy systems and decarbonisation of industry, which opens up space for suppliers of specialised technological solutions from Slovakia. The nuclear energy sector, including the development of small modular reactors, plays an important role. In this area, Italy is taking a more active role in the European debate on energy security. Slovak companies have the opportunity to participate in such projects thanks to their extensive experience in the energy sector.
Risks and barriers
Entering the Italian market brings challenges. Such is the administrative complexity associated with local regulations and business practices. The Italian business environment has a specific business culture that may differ from the experience of Slovak exporters. Navigating local rules takes time and preparation. Late or incomplete payment of invoices can be a risk, affecting the financial stability of the exporter. “The most common way of hedging the risk of non-payment of an invoice issued by an exporter is for exporters to have the customer in Italy checked and subsequently insured against the risk of non-payment,” points out Martin Schaner, Director of the Department of Insurance marketable risk, on the importance of insurance instruments.
Support for banks
Support from banks plays an important role for exporters. Projects often require large investments before deliveries can be made. For many companies, the availability of financing in the early stages of a project is crucial. Pre-export loans make it possible to finance the production or preparation of supplies before receiving payment from the foreign partner. Such financing is often combined with export receivables insurance, which reduces the risk for both the bank and the exporter. “Bank guarantees are among the most frequently used instruments and are a well-established way of securing advance payments. Thanks to them, the client can arrange for payment of approximately 30 to 50 percent of the contract value before the start of production, while the buyer is assured of a down payment guarantee issued by us,” explains Tatiana Harmady, Director of Eximbank’s Funding Department.
Source: TREND.sk
Author:Tomáš Szmrecsányi