**[Chapter 5.  LEADING SECTORS FOR U.S. EXPORTS AND
INVESTMENT]{.underline}**

 

 

**A.  BEST PROSPECTS FOR NON-AGRICULTURAL GOODS AND SERVICES**

 

Following is a listing of non-agricultural products and services which
are considered to offer particularly good opportunities for U.S.
exporters.   Sectors are listed in rank order based on estimated import
market size and growth, as well as U.S. firms\' relative competitive
position in that sector.  Statistics are unofficial estimates based on
best available data and industry sources.  U.S. firms interested in
investigating their market potential, identifying qualified potential
business partners, and broadening their customer base and expanding
sales in Italy in the following sectors should take advantage of
services offered by the U.S. Commercial Service in Italy.  Interested
U.S. companies may find this information on our website at
**[www.buyusa.it]{.underline}** or may send inquiries to our head office
in U.S. Embassy Rome at e-mail address: 
**[rome.office.box@mail.doc.gov]{.underline}**.

 

1.  Computer services

2.  Computer software

3.  Safety & Security Equipment

4.  Computers and Peripherals

5.  Telecommunication Services

6.  Travel and Tourism

7.  Franchising

8.  Medical Equipment

9.  Pollution Control Equipment and Services

10\. Insurance Services

11\. Airport and Ground Support Equipment

12\. Automotive Parts and Service Equipment

13\. Pet Products & Accessories

14\. Pleasure Boats & Accessories

15\. Management Consulting Services

 

 

Sector Rank:  1

Sector Name:  **COMPUTER SERVICES**

ITA Industry Code:  CSV

 

The Italian Information Technology market in 2002 suffered considerably
from the international economic recession, but the worsening situation
had fewer effects on the computer services sector in Italy than in other
European countries.  The sector registered real growth of 3.4 percent in
2002 and is forecast to grow over the next three years, supported by
investments from medium and large-sized Italian enterprises as they
continue streamlining their operations.

 

Within this sector, outsourcing/facility management services and
\"selective\" outsourcing services (such as applications management,
desktop and network management) grew by 7.2 percent in 2002, with these
services expected to be increasingly utilized as tools promoting
efficient and cost-effective business operations. Systems integration,
consulting services and training, and e-learning activities related to
the most innovative technologies also registered a good performance and
are expected to grow.

 

Internet-related services to support intranet/extranet and e-business
solutions have also performed well and have high development potential
in the medium term.  Best opportunities exist for storage management,
security management, ASP and ASP enablement services; integration of Web
and e-commerce solutions with ERP, supply chain management and customer
relationship management solutions. Other services that are developing
rapidly are transaction and payment management, e-procurement,
maintenance-repair-operating (MRO) solutions, home banking, and online
financial services.

 

The market is heavily fragmented among 56,500 operating companies.  The
15 largest companies hold approximately 80 percent of the business,
while the remaining 20 percent is divided among a plethora of small
companies, often very specialized by vertical market segments and
serving the needs of SMEs. The U.S. dominates the market and most major
American computer services companies have opened Italian subsidiaries.
Good opportunities exist only for new-to-market U.S. companies offering
highly specialized and unique integrated services, and willing to team
up with well-established Italian firms.

DATA TABLE:

+----------------------------+-------------+-------------+-------------+
|  (USD Millions)            | 2001        | 2002        | 2003        |
|                            |             |             |             |
|                            | (actual)    | (actual)    | (estimated) |
+----------------------------+-------------+-------------+-------------+
|  Total Market Size         | 8,495       | 9,280       | 11,515      |
+----------------------------+-------------+-------------+-------------+
|   Sales by Local Firms     | 5,375       | 5,845       | 7,255       |
+----------------------------+-------------+-------------+-------------+
|  Exports by Local Firms    | 300         | 325         | 375         |
+----------------------------+-------------+-------------+-------------+
|  Sales by Foreign-owned    | 3,420       | 3,760       | 4,635       |
| Firms                      |             |             |             |
+----------------------------+-------------+-------------+-------------+
|  Sales by U.S. owned Firms | 2,550       | 2,795       | 3,470       |
+----------------------------+-------------+-------------+-------------+
|  Exchange rate \$1=euro    | 1.12        | 1.06        | 0.88        |
+----------------------------+-------------+-------------+-------------+

The above statistics are unofficial estimates.

 

  

Sector Rank:  2

Sector Name:  **COMPUTER SOFTWARE**

ITA Industry Code:  CSW

 

The value of the Italian computer software market is estimated at over
\$3 billion and continues to be one of the largest in Europe.
Application software accounts for approximately 60 percent of the total
market, and systems software for 40 percent (with middleware accounting
for approximately 63 percent of systems software demand). The Italian
software market in 2002 grew by 3 percent over 2001, higher than in most
Western European countries.  Nevertheless, this represents a slowdown
when compared to the +10 percent growth in 2001 and +14 percent in
2000.  Of the two sectors, application software reported higher growth,
with an increase of 4 percent.  The overall performance of systems
software sector was stable (+1 percent), as it countered the negative
growth of systems software (-6 percent) with a marked increase in
middleware (+6 percent).

 

Large to medium-sized businesses and the Italian banking sector,
continue to be the primary IT spenders in Italy even as they report a
fall in demand (-0.8 percent).  Italian firms, concerned about improving
the internal flow of information, streamlining customer relationships,
and expanding their markets, are increasingly investing in enterprise
resource planning (ERP), supply chain management (SCM), customer
relationship management (CRM), and e-commerce applications.  The Italian
banking sector, which has been the most active in investing in new
technologies, is focusing on delivery channels to give customers greater
access to their banking services.

 

Italy is in the early phase of adopting IT security technologies.   Most
companies are still only at the firewall and virus level of IT security,
and are starting to become aware of their own levels of internal risks,
such that they can justify additional spending.  This creates
opportunities for U.S. firms experienced with more advanced types of
security situations and their solutions.   U.S. suppliers should also
note that the public administration sector is a large investor in IT,
and will remain so in the coming years as it continues to increase and
improve its online services and advance Italy\'s information society.

 

Market analysts forecast a cycle of relative growth for software even as
the total IT market is showing signs of further downturn.  Italy relies
heavily on foreign production of software, which account for 75 percent
of the total market.  The United States is the leading exporter of
multiple platform and application software, with a share of over 80
percent of imports.  Once the economic climate improves, U.S. software
should be among the main beneficiaries as the market recognizes the
supremacy and innovative quality of American products.

Data Table:

+------------------------+------------+---------------+---------------+
| > (USD Millions)       | > 2001     | > 2002        | > 2003        |
|                        | >          | >             |               |
|                        | > (actual) | > (actual)    | (estimated)   |
+------------------------+------------+---------------+---------------+
| > Total Market Size    | > 3,421    | > 3,700       | 3,687         |
+------------------------+------------+---------------+---------------+
| > Total Local          | > 2,172    | > 2,348       | 2,341         |
| > Production\*         |            |               |               |
+------------------------+------------+---------------+---------------+
| > Total Exports        | > 427      | > 463         | 460           |
+------------------------+------------+---------------+---------------+
| > Total Imports        | > 1,676    | > 1,815       | 1,807         |
+------------------------+------------+---------------+---------------+
| > Imports from US \*\* | > 1,374    | > 1,452       | 1,481         |
+------------------------+------------+---------------+---------------+
| > Exchange rate \$1=   | >  1.12    | >  1.06       | 0.88          |
| > euro                 |            |               |               |
+------------------------+------------+---------------+---------------+

The above statistics are unofficial estimates.

\*Sales by Italian subsidiaries of U.S. companies are included in Total
Local Production and include sales to the captive market.

\*\*Imports from U.S. refer to direct sales from U.S.-based suppliers or
through Italian distributors.

 

Sector Rank:  3

Sector Name:  **SAFETY AND SECURITY EQUIPMENT**

ITA Industry Code:  SEC

 

Security continues to be of prime concern for industry, commerce and
private citizens in Italy, particularly in the wake of the September 11
events.  In addition to precautions being taken to prevent possible
terrorist activities, a rapid increase in crime over the past decade,
particularly property and vehicle theft and private and commercial
fraud, has led Italian government organizations at all levels to devote
greater resources to security.  For example, the Ministry of the
Interior has introduced in March 2003 a \"Pacchetto Sicurezza\"
(security package), outlining a series of forceful measures to crack
down on crime, some measures of which include the tightening of
punishment for minor offenses (such as street crime), restrictions on
prison release and intensification of controls on newly released
prisoners.

 

According to statistics generated by the National Association for
Security and Building Automation (Associazione Italiana Sicurezza ed
Automazione Edifici: ANCISS), the inter-related security and building
automation sectors enjoyed healthy growth in 2001. Total sales increased
by 3.5 percent, while imports increased by 2.8 percent.  ANCISS
estimates that this upward trend will likely continue, driven by the
allocation of regional funds for increased security in Italian cities,
tax cuts made possible by recent financial laws for investments to
increase security, and increased concern over crime in general and acts
of terrorism.  Unofficial data for late 2002 indicates that certain
sub-sectors saw a significant increase in turnover, including the access
control and video-surveillance sub-sectors.  In general, equipment with
greatest sales potential includes, airport passenger and baggage
screening equipment, port container scanning equipment, CCTV systems,
perimeter protection systems, access control systems including biometric
identification systems, fire-fighting equipment and systems, and
personal protection equipment.

 

Italy has a strong domestic safety and security industry with a
reputation for high quality products.  U.S. manufacturers of safety and
security equipment have an excellent reputation in the Italian market,
and enjoy an approximately 25 percent of the total market. CS Italy
expects that U.S. manufacturers\' presence in Italy will continue to
grow.  Security products with new, innovative and sophisticated features
and in demand, but must be supported by strong after-sales service.  The
presence of a nationwide service organization that can guarantee
installation and maintenance will prove a definite advantage, especially
because customers generally will require training, support and
maintenance. 

Data Table

+-------------------+-------------+-----------------+-----------------+
| > (USD Millions)  | > 2001      | > 2002          | > 2003          |
|                   | >           | >               |                 |
|                   | > (actual)  | > (actual)      | (estimated)     |
+-------------------+-------------+-----------------+-----------------+
| > Total Market    | > 1,122     | > 1,099         | 944             |
| > Size            |             |                 |                 |
+-------------------+-------------+-----------------+-----------------+
| > Total Local     | > 1,395     | > 1,360         | 1,162           |
| > Production      |             |                 |                 |
+-------------------+-------------+-----------------+-----------------+
| > Total Exports   | > 85        | > 82            | 71              |
+-------------------+-------------+-----------------+-----------------+
| > Total Imports   | > 358       | > 349           | 297             |
+-------------------+-------------+-----------------+-----------------+
| > Imports from    | > 90        | > 87            | 75              |
| > the U.S.        |             |                 |                 |
+-------------------+-------------+-----------------+-----------------+
| > Exchange rate   | > 1.12      | > 1.06          | 0.88            |
| > \$1=euro        |             |                 |                 |
+-------------------+-------------+-----------------+-----------------+

The above statistics are unofficial estimates.

Date relating to the safety sector is not available.

 

Sector Rank:  4

Sector Name:  **COMPUTERS AND PERIPHERALS**

ITA Industry Code:  CPT

 

In 2002 the computer and peripherals sector continued to feel the
effects of the international economic recession, and its real growth
rate registered a sharp decrease of 13.5 percent in European currency,
totaling sales of \$ 5.1 billion. In spite of these gloomy results, in
certain market segments the computer and peripherals sector is forecast
to remain one of the best prospects for U.S. exports to Italy over the
next three years.

 

In 2002 most small and many medium-sized Italian companies decided to
postpone their new technological investment and replacement of computer
hardware. The consumer segment, after exceptional PC purchases in 2000
to connect to the internet, suffered dramatically reduced demand due to
occupational uncertainties and income reduction worries.  Larger
companies kept consolidating and rationalizing their existing
infrastructure, now paying greater attention to return on investment and
total cost of ownership.  Nonetheless, they made significant investments
in mainframes, which grew 4.8 percent in value and 51.8 percent in terms
of MIPS.

 

The number of personal computers installed in Italy reached over 13
million units, with a penetration rate of approximately 22 PCs for every
100 inhabitants, still comparatively much fewer than the situation in
the larger European economies.  The PC segment decreased both in
quantity of sales (-4.2 percent) and value of units sold (-10 percent),
due to strong competitive prices pressure.  Notebooks, however, grew
12.6 in quantity.

 

The Italian IT market is far from being mature and the IT potential
remains very high.  As  economic conditions improve, demand is expected
to be stimulated and the market is expected to recover.  In particular,
sales of notebooks, mainframes, PC servers, higher performance midrange
servers, and storage solutions are projected to pick up.

 

U.S. technology and standards are highly regarded. The best
opportunities for success lie with American companies offering
innovative and sophisticated products, and who are willing to team up
with well-established Italian firms for distribution or joint venture
agreements.

DATA TABLE:

+------------------------+--------------+--------------+--------------+
| (USD Millions)         | 2001         | 2002         | 2003         |
|                        |              |              |              |
|                        | (actual)     | (actual      | (estimated)  |
+------------------------+--------------+--------------+--------------+
| Total Market Size      | 5,600        | 5,110        | 5,910        |
+------------------------+--------------+--------------+--------------+
| Total Local Production | 4,575        | 4,030        | 4,785        |
+------------------------+--------------+--------------+--------------+
| Total Exports          | 2,950        | 2,600        | 3,075        |
+------------------------+--------------+--------------+--------------+
| Total Imports          | 3,975        | 3,680        | 4,200        |
+------------------------+--------------+--------------+--------------+
| Imports from the U.S.  | 1,985        | 1,795        | 2,070        |
+------------------------+--------------+--------------+--------------+
| Exchange rate \$1=     | 1.12         | 1.06         | 0.88         |
| euro                   |              |              |              |
+------------------------+--------------+--------------+--------------+

The above statistics are unofficial estimates.

  

Sector Rank:  5

Sector Name:  **TELECOMMUNICATION SERVICES**

ITA Industry Code:  TEL

 

Revenues from Italian telecommunication services market, Europe\'s
fourth largest, are estimated at approximately \$28 billion in 2003. 
The sector by 5 percent in 2002, lower than 2001\'s 9 percent growth,
due to global economic stagnation and market factors.  Most growth in
2001 and 2002 was in wireless (mobile) communications, which continues
to grow faster than wire-line (fixed) services.  The latter, including
fixed line network telephony, data transmission, Internet access and
fixed line network VAS-(value-added services), increased only 2 percent
in 2002, with total sales valued at \$14.5 billion, as consumers turn
from fixed network usage to mobile services. Italy\'s adoption of the
Internet has been slower than its adoption of mobile communications but
penetration rates are approaching the European average, with business
and consumer accounts expected to surpass 38 percent and 49 percent
respectively by the end of 2003, according to Gartner Research.

 

With over 40 million active users, Italy is the world\'s fourth-largest
end-user of mobile communications services, and accounts for
approximately 20 percent of the European market. At the end of 2002,
Italy\'s mobile penetration rate of 92 percent was second only to
Luxembourg in the EU.  Revenues from mobile telephone services,
estimated at approximately \$13.5 billion, increased by 9 percent in
2002 vs. 19 percent in 2001, with value added services (messaging, data
transmission photographic and entertainment services) within that
component, growing at the rate of 33 percent in 2002 against 89 percent
in 2001.   Industry experts view the mobile telephony market as
approaching a high level of maturity and usage, which brings with it a
gradual reduction in growth rates. 

 

For the future, the market will be driven by the following factors:
value-added services on wireless and wire-line networks will continue to
be a particularly dynamic area; quicker, better data and value-added
services at substantially lower prices will be offered by an increasing
number of competing operations; the continued implementation of general
packet radio service (GPRS) telephone services is expected to further
stimulate the data transmission and value-added services sectors as
operators introduce services mainly focused on news, games and
entertainment; mono and multimedia message services (MMS) will prove to
be one of the most dynamic components of mobile telephone services; and
use of the Internet as a business tool will open up many opportunities,
especially in security and value-added services.

 

Given the above, there are lucrative business opportunities for U.S.
companies with technical skill and expertise in Internet applications
and services for wireless and fixed line telephony.  In particular, as
GPRS usage becomes widespread and UMTS cellular telephony is introduced,
there will be good prospects for Internet services in the
business-to-consumer market for publishing, Internet music and videos,
bookings for entertainment events, vacation and travel.

Data Table:

+-----------------------+------------+-----------------+--------------+
| > (USD Millions)      | > 2001     | > 2002          | > 2003       |
|                       | >          | >               |              |
|                       | > (actual) | > (actual)      | (estimated)  |
+-----------------------+------------+-----------------+--------------+
| > Total Market Size   | > 25,837   | > 28,646        | 30,195       |
+-----------------------+------------+-----------------+--------------+
| > Sales by Local      | > 25,342   | > 28,073        | 29,591       |
| > Firms               |            |                 |              |
+-----------------------+------------+-----------------+--------------+
| > Exports by Local    | > \--      | > \--           | \--          |
| > Firms               |            |                 |              |
+-----------------------+------------+-----------------+--------------+
| > Sales by            | > 495      | > 573           | 604          |
| > Foreign-owned       |            |                 |              |
| > Firms\*             |            |                 |              |
+-----------------------+------------+-----------------+--------------+
| > Sales by            | > 81       | > 93            | 97           |
| > U.S.\*-owned Firms  |            |                 |              |
+-----------------------+------------+-----------------+--------------+
| > Exchange rate       | > 1.12     | > 1.06          | 0.88         |
| > \$1=euro            |            |                 |              |
+-----------------------+------------+-----------------+--------------+

The above statistics are unofficial estimates; \*Data not available from
outside sources.

 

Sector Rank:  6

Sector Name:  **TRAVEL AND TOURISM**

ITA Industry Code:  TRA

 

Italy ranks fourth among the world\'s top tourism destinations and
fourth in total receipts.  At the same time, Italians consider it a
national tradition to take a vacation\--often outside of Italy itself. 
In 2002, 46 percent of Italians said they took at least one vacation in
the spring/summer period (April-September), while 41 percent took two to
four vacations.

 

Italy has a high percentage of outbound travelers.  One out of six adult
Italians travels abroad every year, and all surveys indicate an
increasing propensity among Italians to travel abroad. Since 1997, Italy
has become the sixth largest spender in international travel.

 

Despite the tragic events that occurred on 9/11, the U.S. continues to
be the most preferred long haul destination for Italian tourists.  Italy
is the fourth largest market in Europe for the U.S. tourism industry \--
after the United Kingdom, Germany and France \-- and the seventh in the
world.  Italian tourists to the U.S. are among the largest spenders with
an average per capita daily expenditure of \$132.

 

Despite the generally unfavorable exchange rate during the past ten
years, the number of Italian visitors to the U.S. has been growing
constantly over that time. However, the increasingly unfavorable
exchange rate with the dollar started affecting travel to the U.S. in
2000, when a decrease of 2 percent was recorded. In the last two years,
Italian arrivals to the U.S. dropped dramatically from the 612,000
recorded in 2000 to 406,000 last year.  Recent favorable changes to the
exchange rate should now encourage more Italian tourism.

 

In 2002, Italian arrivals to the U.S. decreased by almost 14 percent,
mainly because of the tragic events of September 11. Despite that, all
major players in the \"travel to the U.S. sector\" indicate strong
growth prospects for the Italian market, and America is expected to
remain at the top of preferred long-haul destinations. Besides the most
visited States by Italians, which invariably are New York, California
and Florida, there are several emerging destinations such as Nevada, the
Rocky Mountain Region, and New England.  The success of the latter
destinations is directly related to targeted marketing and promotional
efforts that the tourism authorities of those States have devoted to the
Italian market.

Data Table:

+--------------------+-------------+-----------------+-----------------+
| > (USD Millions)   | > 2001      | > 2002          | > 2003          |
|                    | >           | >               |                 |
|                    | > (actual)  | > (actual)      | (estimated)     |
+--------------------+-------------+-----------------+-----------------+
| > Total Outgoing   | > 14,815    | > 16,840        | 20,300          |
| > Travel           |             |                 |                 |
+--------------------+-------------+-----------------+-----------------+
| > Travel to the    | > 1,610     | > 1,965         | 2,370           |
| > U.S.             |             |                 |                 |
+--------------------+-------------+-----------------+-----------------+
| > Exchange rate    | > 1.12      | > 1.06          | 0.88            |
| > \$1=euro         |             |                 |                 |
+--------------------+-------------+-----------------+-----------------+

The above statistics are unofficial estimates.

 

Sector Rank:  7

Sector Name:  **FRANCHISING**

ITA Industry Code:  FRA

 

For the past 32 years, the franchising sector has been growing
constantly in Italy, and forecasts for the next three years indicate
that this positive trend will continue.  Franchising plays a significant
role in the Italian economy and is perceived as the most innovative way
to introduce a new business concept in Italy.   Cognizant of
franchising\'s significant contribution to the economy, the Italian
Government is in the process of passing the first law governing
franchising activities.   The law is expected to become effective in the
next few months. 

 

In 2002 there were 621 franchisors in Italy, with approximately 39,000
franchisees, employing 105,000 people.  Revenues were 14 million euro. 
Despite a stagnating Italian economy, where consumption and employment
have been essentially flat, franchising has been growing.  In 2002 the
number of franchisors was up 2.5 percent from the year before, the
number of outlets was up 6.6 percent, revenues were up 5 percent and the
number of people employed was up 5.8, a major contribution to offsetting
unemployment in certain areas of the country.   Over the past decade,
the number of franchisors has doubled.

 

Franchising services in areas derived from the new economy are making a
breakthrough, and activities linked to Internet, E-commerce,
telecommunications and information technology are on the forefront of
success.  Almost half of Italian franchisors are service providers and,
as Italy transitions gradually into a more service based economy, the
demand will increase.  Italy has gradually loosened the laws and
restrictions that in the past discouraged the opening of new
businesses.  This process is now faster and less complicated than it was
5-10 years ago.

 

Advanced franchising concepts are influencing the still fragmented
Italian retail distribution system, which is gradually being replaced
with more modern distribution methods. Adaptability to the Italian
business and cultural environment and flexibility in setting master
license fees are key factors for the successful introduction of a
foreign franchise.

In Italy 34 U.S. companies operate through a master franchisee, out of a
total of 71 foreign franchisers present. France is second both in terms
of franchisers and franchising units. The Italian business community
views American franchise companies with a very open mind and recognizes
their predominance.

Data Table:

+-------------------------+---------------+------------+--------------+
| > (USD Millions)        | > 2001        | > 2002     | > 2003       |
|                         | >             | >          |              |
|                         | > (actual)    | > (actual) | (estimated)  |
+-------------------------+---------------+------------+--------------+
| > Total Market Size     | > 11,942      | > 13,267   | 16,035       |
+-------------------------+---------------+------------+--------------+
| > Total Local           | > 11,766      | > 12,877   | 15,563       |
| > Production            |               |            |              |
+-------------------------+---------------+------------+--------------+
| > Total Exports         | > 940         | > 1,013    | 1,223        |
+-------------------------+---------------+------------+--------------+
| > Total Imports         | > 1,116       | > 1,403    | 1,695        |
+-------------------------+---------------+------------+--------------+
| > Imports from the U.S. | > 725         | > 782      | 944          |
+-------------------------+---------------+------------+--------------+
| > Exchange rate \$1 =   | > 1.117       | > 1.057    | 0.877        |
| > euro                  |               |            |              |
+-------------------------+---------------+------------+--------------+

The above statistics are unofficial estimates.

 

Sector Rank:  8

Sector Name:  **MEDICAL EQUIPMENT**

ITA Industry Code:  MED

 

The Italian National Healthcare Service (Servizio Sanitario Nazionale -
SSN) is by far the major healthcare provider in Italy. The Ministry of
Health, through triennial national health plans, establishes the
fundamental objectives of healthcare, including preventive care, therapy
and rehabilitation.  It defines the level of healthcare guaranteed to
all citizens and issues guidelines for the organization, delivery and
funding of healthcare services paid by the SSN. The 20 Italian Regions,
which have the primary role in setting and implementing healthcare
policies, are responsible for developing regional health plans and for
organizing and delivering healthcare services through local \"Health
Units\".  The SSN receives its funding through the National Health Fund,
appropriated every year through the Government of Italy\'s budgetary
legislation. 

 

Public healthcare accounts for 75 percent of total expenditures for
medical equipment and products, with the balance being spent by private
healthcare facilities.  In addition, the SSN purchases a significant
portion of healthcare services from private providers. The SSN has
jurisdiction over 196 large hospitals and 600 medium and small size
hospitals, which are managed by 197 Local Health Authorities.  The total
number of beds in the public sector is 220,932.  In addition, public
healthcare manages 7079 outpatient facilities, 1506 residential
facilities for the elderly and 4794 other healthcare facilities.

 

Private healthcare service providers account for 640 private and
independently operated clinics, with a total of 60,000 beds. The latest
trend shows an increase in the number of private healthcare facilities
in comparison with public hospital increases.

 

The Italian market for medical equipment relies heavily on imports.
Major suppliers are the United States and Germany. Generally speaking,
domestic production is limited of sophisticated and hi-tech medical
equipment and products, or those items for which investment in R&D is of
critical importance (exceptions being radiology and ultrasonic
equipment, for which local production is good). Recently, the SSN
implemented a policy of increasing capital goods expenditure in order to
update a large percentage of obsolete medical equipment.  As a result,
the market for medical equipment has improved and the future is more
promising in terms of business opportunities.  Prices are considered to
be the primary factor in purchasing decisions. In addition, in
accordance with EU-wide certification requirements, most medical
products and equipment need to have a CE mark. 

Data Table:

+------------------------+-------------+-------------+----------------+
| > (USD Millions)       | > 2001      | > 2002      | > 2003         |
|                        | >           | >           |                |
|                        | > (actual)  | > (actual)  | (estimated)    |
+------------------------+-------------+-------------+----------------+
| > Total Market Size    | > 2,512     | > 2,975     | 3,557          |
+------------------------+-------------+-------------+----------------+
| > Total Local          | > 1,075     | > 1,267     | 1,516          |
| > Production           |             |             |                |
+------------------------+-------------+-------------+----------------+
| > Total Exports        | > 262       | > 309       | 366            |
+------------------------+-------------+-------------+----------------+
| > Total Imports        | > 1,699     | > 2,011     | 2,407          |
+------------------------+-------------+-------------+----------------+
| > Imports from the     | > 934       | > 1,126     | 1,347          |
| > U.S.                 |             |             |                |
+------------------------+-------------+-------------+----------------+
| > Exchange rate        | > 1.117     | > 1.057     | 0.877          |
| > \$1=euro             |             |             |                |
+------------------------+-------------+-------------+----------------+

The above statistics are unofficial estimates.

 

 

Sector Rank:  9

Sector Name:  **POLLUTION CONTROL EQUIPMENT AND SERVICES**

ITA Industry Code:  POL

 

The environmental sector in Italy is expected to undergo considerable
growth over the next five to seven years, thanks to a number of
recently-enacted laws in various areas.  To begin with, in 2001 the
government approved a National Remediation Plan identifying 40 sites of
\"national interest\" requiring urgent clean-up. Ministerial Decree n.
471/99 establishes criteria, procedures and methods for safety and
clean-up actions and for environmental restoration of contaminated
sites.  As a result, some 15,000 locations in Italy are subject to
environmental investigation and remediation actions. The Italian
Ministry of the Environment has allotted 500 million euro to be utilized
by Italy\'s 20 regions for these projects. 

 

Italy has been experiencing serious industrial and urban waste problems
for years.  Every year, Italy generates approximately 64 million tons of
waste, with the capacity to properly manage and dispose of only 30
percent of the waste generated. The Ministry of Environment has
implemented EU Directives 91/156 on waste, 91/689 on hazardous waste,
and 94/62 and waste packaging.  The Italian law, commonly referred to as
the \"Decreto Ronchi,\" simplifies procedures by means of a tariff
system to encourage waste minimization, reuse, recycling and recovery. 
The availability of EU and Italian government funds to deal with this
emergency creates demand for new, safer US technologies for
waste-to-energy incineration.

 

The implementation of the EU Directive on the prevention, re-use and
recycling of Waste Electrical and Electronic Equipment (WEEE) will most
likely open potential market opportunities for U.S. firms, especially
those engaged in waste management, recycling and waste recovery
technologies, new product development and technological innovation.

 

Italy\'s \"Water Safeguard Law,\" a comprehensive reform of Italy\'s
water quality/discharge. Italy\'s water collection and distribution
systems, as well as its urban wastewater sewage and purification systems
are clearly inadequate, requiring an investment of some \$18-47 billion
over the next 4-10 years. Long-delayed urgent water projects in Southern
Italy will be carried out in 2003 and 2004, facilitated by funding from
the European Union.

  

Italy is largely dependent on foreign expertise in this area, with high
regard for U.S. products and technologies.  Competition is fierce, but
demand is strong for truly innovative products and services, as well as
environmental consulting and risk assessment companies.

Data Table:

+-----------------------+------------+----------------+----------------+
| > (USD Millions)      | > 2001     | > 2002         | > 2003         |
|                       | >          | >              |                |
|                       | > (actual) | > (actual)     | (estimated)    |
+-----------------------+------------+----------------+----------------+
| > Total Market Size   | > 4,212    | > 4,339        | 4,468          |
+-----------------------+------------+----------------+----------------+
| > Total Local         | > 3,820    | > 3,934        | 4,052          |
| > Production          |            |                |                |
+-----------------------+------------+----------------+----------------+
| > Total Exports       | > 465      | > 478          | 492            |
+-----------------------+------------+----------------+----------------+
| > Total Imports       | > 857      | > 883          | 908            |
+-----------------------+------------+----------------+----------------+
| > Imports from the    | > 378      | > 389          | 401            |
| > U.S.                |            |                |                |
+-----------------------+------------+----------------+----------------+
| > Exchange rate       | > 1.12     | > 1.06         | 0.88           |
| > \$1=euro            |            |                |                |
+-----------------------+------------+----------------+----------------+

The above statistics are unofficial estimates.

 

 

 Sector Rank:  10

Sector Name:  **INSURANCE SERVICES**

ITA Industry Code:  INS

 

Total direct and indirect insurance premiums collected by firms based in
Italy increased by 14.1 percent in the year 2002 to \$86,239 million. In
particular, \$32,454 million came from casualty insurance premiums and
\$53,784 from life insurance premiums, which increased respectively by
8.0 percent and 18.4 percent over the previous year. Life insurance
premiums continued to experience rapid growth accounting for 61.5
percent of the total insurance premiums in 2002. The overall demand for
insurance products also continued to increase and registered a 12.7
percent growth rate - slightly greater than 9.4 percent of the previous
year.

 

The Association Nazionale Imprese Assicuratrici (National Association of
Insurance Companies) predicts slower growth for casualty insurance
(about 6 percent) over the next year because of the limits imposed by
new legislation on auto insurance. According to the association, total
life insurance premiums should reach \$73,286 billion in 2003, with life
insurance growing at about 14 percent, less than the 18.4 percent growth
registered in 2002.

 

The importance of the insurance industry - measured by the ratio
premiums/GDP- has increased every year since 1999, moving from 3 percent
in 1999 to almost 4 percent in 2001, This ratio is over 10 percent for
the UK and around 6 percent for France.  However, Italy now surpasses
Germany\'s 3 percent and is equal to the ratio for Spain**.** The
insurance sector will continue to play a major role in Italy\'s
financial markets due to the deficit of the national pension and health
system and the increased importance of the newly created private pension
funds.

 

Among the top ten companies operating in the sector are eight large
Italian insurance companies led by \"Assicurazioni Generali\".
Foreign-owned insurance companies, which have been quite aggressive in
the market, maintain an estimated market share of 30 percent. Countries
whose firms have the strongest market presence are Germany (Ras, Lloyd
Adriatico), Switzerland (Winterthur Assicurazioni) and France (Axa
Assicurazioni).

 

The handful of U.S. companies presently doing business in Italy
(including AIG Europe, Cigna Life Insurance, Chubb Insurance, Prumerica
Life and Allstate) have increased their performance with the market\'s
growth but still only represent approximately 0.3 percent of the market.
U.S. companies are expected to take advantage of greater opportunities
in Italy due to the liberalization of the EU insurance services market,
as well as to the newly-introduced Italian tax incentives for insurance
covers involving individual supplemental allowance and long-term care
plans.

Data Table:

+----------------------------+----------+-------------+---------------+
| > (USD Millions)           | > 2001   | > 2002      | > 2003        |
|                            | >        | >           |               |
|                            | >        | > (actual)  | (estimated)   |
|                            | (actual) |             |               |
+----------------------------+----------+-------------+---------------+
| > Total Market Size        | > 73,303 | > 86,239    | 95,725        |
+----------------------------+----------+-------------+---------------+
| > Sales by Local Firms     | > 75,002 | > 88,283    | 97,994        |
+----------------------------+----------+-------------+---------------+
| > Exports by Local Firms   | > 22,224 | > 24,190    | 29,072        |
+----------------------------+----------+-------------+---------------+
| > Sales by Foreign-owned   | > 20,525 | > 24,146    | 26,803        |
| > Firms                    |          |             |               |
+----------------------------+----------+-------------+---------------+
| > Sales by U.S.-owned      | > 219    | > 258       | 287           |
| > Firms                    |          |             |               |
+----------------------------+----------+-------------+---------------+
| > Exchange rate \$1=euro   | > 1.12   | > 1.06      | 0.88          |
+----------------------------+----------+-------------+---------------+

The above statistics are unofficial estimates.

 

Sector Rank:  11

Sector Name:  **AIRPORT AND GROUND SUPPORT EQUIPMENT**

ITA Industry Code:  APG

 

With 40 primary and 48 secondary airfields, Italy remains one of the
most important European markets for airport and ground support
equipment.  In the wake of the events of September 11 and other
international developments, expenditures on capital equipment are
resuming, by both the central and regional governments, in order to
achieve two main objectives: first, to enable the primary airports to
compete in an ever more competitive European market, and second, to
ensure a higher level of security as prescribed by ENAV, the Italian air
traffic control agency. The market is therefore expected to expand with
increased near/medium term investments, both private and public, for
airport expansion, upgrading of existing structures, and purchase of
ground support equipment and systems.  Following the September 11
events, all international and national airports have seen an increase in
expenditures for security and safety structures and systems and more
financing is expected for this purpose in the short term.

 

Fourteen primary Italian airports have been designated for upgrading air
transportation management and passenger/cargo terminal facilities, with
most activity concentrated in the seven largest Italian airports. In
2002 passenger traffic in these airports exceeded 65 million (the
national figure is about 75 million), split as follows:  Rome (Fiumicino
and Ciampino):  26,000,000; Milan (Linate and Malpensa):  25,000,000;
Naples:  4,500,000; Venice:  4,200,000; Catania:  4,000,000; Turin:
 2,500,000; Bari:  1,200,000.

 

U.S. technology and design is highly regarded by Italian airport and
ground support equipment operators. U.S. manufacturers currently hold 25
percent of the Italian market and should maintain, and even surpass,
this position in the next year.

Data Table:

+------------------------+-----------+----------------+---------------+
| > (USD Million)        | > 2001    | > 2002         | > 2003        |
|                        | >         | >              |               |
|                        | >         | > (actual)     | (estimated)   |
|                        |  (actual) |                |               |
+------------------------+-----------+----------------+---------------+
| > Total Market Size    | > 2,350   | > 2,390        | 2,450         |
+------------------------+-----------+----------------+---------------+
| > Total Local          | > 1,720   | > 1,780        | 1,840         |
| > Production           |           |                |               |
+------------------------+-----------+----------------+---------------+
| > Total Exports        | > 720     | > 790          | 870           |
+------------------------+-----------+----------------+---------------+
| > Total Imports        | > 1,310   | > 1,400        | 1,480         |
+------------------------+-----------+----------------+---------------+
| > Imports from the US  | > 620     | > 630          | 640           |
+------------------------+-----------+----------------+---------------+
| > Exchange rate        | > 1.12    | > 1.06         | 0,88          |
| > \$1=euro             |           |                |               |
+------------------------+-----------+----------------+---------------+

The above statistics are unofficial estimates.

 

 

Sector Rank:  12

Sector Name:  **AUTOMOTIVE PARTS AND SERVICE EQUIPMENT**

ITA Industry Code:  APS

 

The Italian market for automotive parts and service equipment
experienced a decline of 5 percent during 2002\--a negative result
reflecting the 11 percent decrease in passenger car production in
Italy.  Domestic production covered approximately 67 percent of the
demand and imports held steady at 34 percent. Sales of original
equipment (OE) accounted for 71 percent of total components demand, with
22 percent of OE acquisitions imported. Aftermarket (AM) sales
represented 29 percent of overall components demand (with well over half
being covered by imports). The exceptional market share of AM imports is
attributable to the development of modern distribution channels and
transnational operators, improved performance of foreign automotive
organizations and greater competitiveness of imported products. Main
country suppliers are Germany (33 percent) and France (21 percent).
Imports from the U.S. represented 3.5 percent of overall imports.

 

Italy has reportedly one of the highest auto densities in the world and
still one of the oldest circulating auto fleets in Europe with
approximately 35 million vehicles currently on the road.  Despite the
fact that a stabilization, if not contraction, in growth of the vehicle
fleet and the simultaneous increase in the reliability of components
would point to a slowdown in the growth of the market, the higher
frequency of periodic compulsory motor vehicle inspections and stricter
pollution control regulations are nonetheless expected to spur sales in
Italy of spare parts and service equipment. Furthermore, as the
electronic systems on cars become increasingly sophisticated so must
service shops invest in new equipment and technologies to provide
maintenance for these systems.

 

In October 2002, new European standards on auto servicing came into
force, opening attractive prospects for repair professionals who do not
belong to manufacturers\' networks.  Based on the new rules, these
professionals will be able to receive from car manufacturers any
technical information and training needed to repair any kind of
automobile. This represents a significant market opportunity for
Italy\'s 60,200 independent repair professionals who, along with the
4,200 garages belonging to the official networks, make up the Italian
auto repair industry.

 

While growth in U.S. auto parts, accessories, components and service
equipment shipments to Italy is not expected to exceed a 2 percent
average annual increase for the next couple of years, the U.S. industry
is nevertheless supplying the Italian market primarily from its European
subsidiaries. Best prospects include all the wide range of passive and
active security components/accessories, environmentally friendly
features, diagnostic apparatuses and light weight/acoustic
insulation/advanced materials.

 

Data Table:

+---------------------------+--------------+------------+-------------+
| > (USD Millions)          | > 2001       | > 2002     | > 2003      |
|                           | >            | >          |             |
|                           | > (actual)   | > (        | (estimated) |
|                           |              | estimated) |             |
+---------------------------+--------------+------------+-------------+
| > Total Market Size       | > 20,862     | > 20,988   | 24,036      |
+---------------------------+--------------+------------+-------------+
| > Total Local Production  | > 28,301     | > 26,328   | 28,505      |
+---------------------------+--------------+------------+-------------+
| > Total Exports           | > 12,699     | > 12,241   | 13,254      |
+---------------------------+--------------+------------+-------------+
| > Total Imports           | > 6,435      | > 6,901    | 8,785       |
+---------------------------+--------------+------------+-------------+
| > Imports from the U.S.   | > 224        | > 236      | 283         |
+---------------------------+--------------+------------+-------------+
| > Exchange rate \$1=euro  | > 1.12       | > 1.06     | 0.88        |
+---------------------------+--------------+------------+-------------+

The above statistics are unofficial estimates.

 

Sector Rank:  13

Sector Name:  **PET PRODUCTS**

ITA Industry Code:  PET

 

The Italian pet market has recorded the highest growth rate among
European countries over the past several years. At the same time, the
market remains far from saturated. Research shows the role that pets
play in Italy has become more important in recent years, leading to a
strong and growing market for pet products.

 

In recent years, the profile of the average Italian pet owner has
changed, as has the role pets play in the modern society. Today dogs and
cats - but also birds, small animals (rodents) and even exotic animals
such as reptiles and fish - are considered friends and companions that
provide psychological comfort.  In modern, increasingly hectic and
stressful society, pets represent security and comfort; they have come
to be scientifically recognized as providing important emotional
support. The changing and increasingly important role of pets in Italy
is leading to the growth in demand for pet-related products and
services.

 

The pet products market in Italy is estimated at \$3.6 billion for 2003,
an increase of approximately 5 percent over the previous year. Trade
sources have forecast increases of the same magnitude for the next few
years.  Dog food is one of the sectors that is expected to increase the
most, since the consumption rate of commercial food is still very low
compared to other countries. While the \"Mediterranean diet\" (pasta or
rice) is still prevalent in dog and cat diets, the market for industrial
or commercial pet food has increased greatly in recent years.

 

The pet care sector is experiencing remarkable growth. The trend towards
\"humanization\" of pets has led owners to buy specific products for
their animal companions.  In the pet accessories sector, the trend
towards diversification is greater. The growth in this sector is due to
the development of high technology products, as well as those that focus
on the beauty, elegance and \"personality\" of pets and satisfy pet
owner whims.

 

Imports play a major role in this market \-- especially in the pet food
sector \-- with over one third of the total market.  Over 50 percent of
pet food and 20 percent of pet accessories are imported. U.S. brands are
among these imports, especially in the pet food sector, where they enjoy
an excellent reputation.

 

Given these positive market conditions, the Italian pet products market
has great growth potential and offers many opportunities for U.S.
companies wishing to expand their sales internationally.

Data Table:

+--------------------+---------------+---------------+---------------+
| > (USD Millions)   | > 2001        | > 2002        | > 2003        |
|                    | >             | >             |               |
|                    | > (actual)    | > (actual)    | (estimated)   |
+--------------------+---------------+---------------+---------------+
| > Total Market     | > 2,650       | > 2,940       | 3,700         |
| > Size             |               |               |               |
+--------------------+---------------+---------------+---------------+
| > Total Local      | > 1,900       | > 2,100       | 2,670         |
| > Production       |               |               |               |
+--------------------+---------------+---------------+---------------+
| > Total Exports    | > 200         | > 220         | 270           |
+--------------------+---------------+---------------+---------------+
| > Total Imports    | > 950         | > 1,060       | 1,300         |
+--------------------+---------------+---------------+---------------+
| > Imports from the | > 195         | > 220         | 280           |
| > U.S.             |               |               |               |
+--------------------+---------------+---------------+---------------+
| > Exchange rate    | > 1.12        | > 1.06        | 0.88          |
| > \$1=euro         |               |               |               |
+--------------------+---------------+---------------+---------------+

The above statistics are unofficial estimates.

 

 

 

Sector Rank:  14

Sector Name:  **PLEASURE BOATS AND ACCESSORIES**

ITA Industry Code:  PLB

 

The Italian Pleasure Boat market is the second largest in the world,
with an estimated value of \$1.0 billion, second only to the U.S.
market, at approximately \$10.0 billion. Italy\'s natural resources,
including 104 ports and marinas and 8,000 miles of waterways, make it a
prime location for a thriving pleasure boat market. Currently, there are
about 400,000 pleasure crafts in Italy. The Italian market is expected
to grow 20% in 2003.

 

The Italian pleasure boat market is relatively new. Before 1990,
pleasure boats were unaffordable to all but a select few due to Italian
economic conditions and the relatively high cost of buying and
maintaining a boat.  With the economic boom of the mid-1980s and the
implementation of \"boat friendly\" legislation, boat purchase and
maintenance became more feasible.  Today the development of the market
continues, as government sponsored projects take hold to modernize and
develop pleasure boat marinas and ports, creating new berths and
moorings. New legislation also cuts through bureaucratic red tape and
reduces fees for boat ownership. In January 2003, new legislation was
passed abolishing yearly docking fees for all pleasure boats, as well as
granting government protection of certain marinas. Within the next few
years, the government plans to more than double the existing number of
boat berths in southern Italy.  Projects such as these create new
opportunities in nautical tourism and the pleasure boat market.

 

There are many opportunities for American businesses in the Italian
pleasure boat market. Besides in the market for new and used motorboats,
sailboats, inflatable boats, and motors, opportunities can be found in
the exportation of marine accessories such as safety devices and
nautical software, as well as in the development and management of
Italian marinas and ports. In these fields, American products lead in
quality, technology, and reliability. For the past ten years, the United
States has held a steady share of the import market averaging about 20
percent per year. The largest imported American item remains the
outboard motorboat.

Data Table:

+---------------------------+-------------+-------------+-------------+
| > (USD Millions)          | > 2001      | > 2002      | > 2003      |
|                           | >           | >           |             |
|                           | > (actual)  | > (actual)  | (estimated) |
+---------------------------+-------------+-------------+-------------+
| > Total Market Size       | > 0.671     | > 0.811     | 1,039.8     |
+---------------------------+-------------+-------------+-------------+
| > Local Production        | > 0.122     | > 0.145     | 0.161       |
+---------------------------+-------------+-------------+-------------+
| > Exports by Local Firms  | > \-        | > \-        | \-          |
+---------------------------+-------------+-------------+-------------+
| > Imports                 | > 0.531     | > 0.640     | 0.827       |
+---------------------------+-------------+-------------+-------------+
| > Imports from U.S.       | > 0.115     | > 0.134     | 0.185       |
+---------------------------+-------------+-------------+-------------+
| > Exchange rate \$1=euro  | > 1.12      | > 1.06      | 0.88        |
+---------------------------+-------------+-------------+-------------+

The above statistics are unofficial estimates.

 

 

Sector Rank:  15

Sector Name:  **MANAGEMENT CONSULTING SERVICES**

ITA Industry Code:  MCS

 

The Italian market for management consulting was estimated at \$2.04
billion in 2002 (excluding earnings additional to fee income, such as
software licenses, etc.).   After experiencing growth up until 2001,
with yearly increases of 15 percent or more, the sector was negatively
impacted in 2002 by the global economic slowdown.  Nevertheless, the
outlook for this sector is positive. Human resource management
consulting accounts for nearly 31 percent of total revenues, corporate
strategy consulting about 25 percent, operations management consulting
24 percent and information technology consulting 18 percent.  Among the
biggest users of management consulting services are the banking sector
(20 percent of the market), wholesale and retail (14 percent), consumer
goods (11 percent), and non-profit organizations and government (10
percent).

 

Italy remains a low consulting-intensive market.  The market is
comprised of about 3,100 firms with nearly 23,500 people, and is divided
among global competitors (most of which are U.S. origin) offering a
full-range of state-of-the-art products, a few \"national champions,\"
and a number of local or niche players and \"gurus\". Concentration is
lower than in other European countries, with the top 20 firms taking
less than 40 percent of overall fee revenues.

 

Most big multinational consulting firms are well established in the
Italian market. Multinational firms make up as much as 55 percent of the
market, and U.S. firms about one-third.  The largest consulting firm in
Italy is Accenture, which employs over 4,000 people. In addition to
consulting, Accenture (like other important consulting firms) provides
technology and solutions in the area of information services, as well as
outsourcing services in the area of administration and financial
control.

Issues such as e-business, implementation and enhancement of CRM
systems, globalization/ internationalization, mergers and acquisitions
are key demand drivers of management consulting services, with both
private and public organizations offering opportunities.  Public service
companies and government agencies are slowly but steadily re-organizing
and reviewing their operations to achieve higher efficiency. In
particular, utility companies \-- which used to hold monopoly positions
in the telecommunications, energy, and transportation sectors \-- are
now faced with challenging liberalization and privatization processes. 
The financial sector also offers opportunities, due to consolidation of
banking products and to a need for control systems in financial
services.  Solid knowledge of the local regulatory environment and
market conditions, as well as unique know-how in specialized
sectors/functions and adequate international experience have become
pre-conditions for effectively competing in this market. American
consulting firms considering entering the Italian market should explore
the possibility of teaming up with Italian partners.

 

Data Table:

+---------------------------+-------------+-------------+-------------+
| > (USD Millions)          | > 2001      | > 2002      | > 2003      |
|                           | >           | >           |             |
|                           | > (actual)  | > (actual)  | (estimated) |
+---------------------------+-------------+-------------+-------------+
| > Total Market Size       | > 1,915     | > 2,042     | 2,511       |
+---------------------------+-------------+-------------+-------------+
| > Sales by Local Firms    | > 940       | > 1,003     | 1271        |
+---------------------------+-------------+-------------+-------------+
| > Exports by Local Firms  | > 115       | > 123       | 150         |
+---------------------------+-------------+-------------+-------------+
| > Sales by Foreign-owned  | > 1,090     | > 1,162     | 1,390       |
| > Firms                   |             |             |             |
+---------------------------+-------------+-------------+-------------+
| > Sales by U.S.-owned     | > 640       | > 682       | 830         |
| > Firms                   |             |             |             |
+---------------------------+-------------+-------------+-------------+
| > Exchange rate \$1=euro  | > 1.12      | > 1.06      | 0.88        |
+---------------------------+-------------+-------------+-------------+

The above statistics are unofficial estimates.

 

**B.  BEST PROSPECTS FOR U.S. AGRICULTURAL EXPORTS**

 

U.S. bulk and intermediate commodities are used as ingredients or inputs
for value-added products re-exported and sold globally.  This is
particularly true for wheat and forest products, among the largest U.S.
agricultural exports to Italy.  Italian wheat imports from the U.S.
primarily consist of high-quality durum wheat used to produce pasta.  In
2002, durum wheat imports from the United States totaled \$51 million. 
In 2003, unfavorable weather conditions and reduced plantings are
expected to push Italian wheat imports even higher.  These factors, in
addition to the depreciation of the dollar and growing Italian pasta
exports, could benefit U.S. wheat exporters. 

 

Italy has a long tradition in woodworking and manufacturing products
made from hardwood and softwood. The Italian wood industry imports 80
percent of the raw materials used for manufacturing finished products,
that are then re-exported.  U.S. wood export opportunities exist for
species not readily available in Europe.  These include high-grade
hardwood, mainly tulipwood, red alder and white and red oak, as well as
other species such as ash, cherry and hard maple.  Italian manufacturers
are very receptive to working with new U.S. hardwood species.  In 2002,
U.S. hardwood lumber exports to Italy totaled nearly \$82 million. 
Well-established grading rules, efficient shipment and reliable delivery
schedules from the U.S. are perceived as advantages.  Italy is expected
to continue importing U.S. wood products, although competition from
low-cost East European suppliers is likely to increase. 

 

Consumer-oriented exports to Italy are also on the rise.  The Italian
diet has become an international reference point as it combines both
Continental and Mediterranean eating habits.  At the same time, Italians
remain fairly traditional in their food habits.  Consumption trends
indicate that Italian consumers are very health conscious and are
willing to pay a premium for quality foods such as seafood products. 

 

Italy is the world\'s fifth largest importer of seafood products.  With
a population of approximately 58 million, Italy has an annual per capita
consumption of about 23 kg of fish and seafood.  Italy imports nearly
\$2.7 billion of fish and seafood products annually, with half of its
seafood imports coming from EU member states, particularly Spain.  Last
year, Italy imported more than \$42 million in seafood products from the
United States. 

**Wheat**

** **

Data Table:

+----------------------+-----------------------+-----------------------+
| > (USD Millions)     | > U.S.                | World                 |
+----------------------+-----------------------+-----------------------+
|                      | > Imports             | Imports               |
+----------------------+-----------------------+-----------------------+
| > 2001               | > 135                 | 1,200                 |
+----------------------+-----------------------+-----------------------+
| > 2002               | > 117                 | 1,100                 |
+----------------------+-----------------------+-----------------------+

The above statistics are unofficial estimates.

 

**Hardwood**

** **

Data Table:

+------------------------+---------------------+----------------------+
| > (Millions of euro)   | > U.S.              | World                |
+------------------------+---------------------+----------------------+
|                        | > Imports           | Imports              |
+------------------------+---------------------+----------------------+
| > 2001                 | > 94                | 2,600                |
+------------------------+---------------------+----------------------+
| > 2002                 | > 86                | 2,568                |
+------------------------+---------------------+----------------------+

The above statistics are unofficial estimates.

**Seafood**

** **

Data Table:

+------------------------+---------------------+-----------------------+
| > (USD Millions)       | > U.S.              | World                 |
+------------------------+---------------------+-----------------------+
|                        | > Imports           | Imports               |
+------------------------+---------------------+-----------------------+
| > 2001                 | > 47                | 2,485                 |
+------------------------+---------------------+-----------------------+
| > 2002                 | > 46                | 2,397                 |
+------------------------+---------------------+-----------------------+

The above statistics are unofficial estimates.

Justin Oslowski

International Trade Specialist

U.S. Department of Commerce, U.S. Commercial Service

Western PA Export Assistance Center

\(T\) 412-644-2817

\(F\) 412-644-2803

http://www.buyusa.gov/pittsburgh