During the webinar presentation launching MCE Mostra Convegno Expocomfort 2022 in North America, held last November 30, 2021, a roster of speakers from Europe, Canada and the US made the case for attending what is arguably one of the most important international trade shows for plumbing and HVAC technologies worldwide. The event was organized by the Italian Trade Commission - ITA Canada, in partnership Reed Exhibitions, ANIMA Confindustria Meccanica, and Plumbing & HVAC Magazine.
The speakers provided insights on Italian technology that will be showcased at the trade show and emphasized key facts regarding Italy’s dynamic plumbing and HVAC industries.
Regarding HVAC, Italy holds a number of industry firsts. According to the Association of the European Heating Industry - Ehi - market report, Italy is the largest EU market for hybrid heat pumps. Gas condensing technology remains Italy’s best-seller, due to an extensive gas network and the affordability of gas.
This rise of Italy as global leader in heat pumps started in 2018 when over 775,000 new, energy-efficient and renewable-based heaters were installed throughout the country, noting an increase of 10% over 2017. This growth, which has continued in the proceeding years, is due primarily to central government policies and incentives to invest in new equipment and infrastructures. Among new heaters installed, 94% were gas-condensing boilers - the most common efficient technology used to replace the stock of old and inefficient non-condensing boilers.
Even though solar thermal technology has been on a decline since 2011, electric heat pumps have enjoyed continual high growth rates reaching 33,500 units in 2018.
The Ehi report also indicates that Italy is the second-largest EU manufacturing country for heating appliances, which means heating will contribute in large part to a yearly job creation of over 115,000 jobs which the energy sector is set to create by no later than 2030.
Despite being a large market for energy efficient and renewable based heaters, installations of newer appliances continue to make only a small dent in the installed stock of old and inefficient heaters of Italy. This stood at a daunting 14,6 million systems (2017) and will take about 20 years to entirely modernise. The growth market potential is sizable.
Italy’s HVAC and plumbing technology prowess is based on the backbone of geographically confined industrial clusters where SMEs and larger companies share resources, expertise and create economies of scale.
The competitive advantage of being part of a cluster lies also in the fact that a specialization can develop, within the same sector, with different companies dealing with different stages of product processing. Also the clusters rely on subcontractors and lower tier-suppliers as well as assemblers, and OEMs. While in the case of plumbing and HVAC clusters in Italy, you may have suppliers of molds, foundries, key processors (turning, threading, chrome plating, gilding,...) and then satellite suppliers which step in during periods of increased demand.
Among Italy’s most prominents plumbing and HVAC clusters or “distretti industriali”, is the region knowns as Piedmont Cusio-Val Sesia (Novara, Verbano-Cusio-Ossola and Vercelli) which stretches across a mere 47 Km2 within the Piedmont region, and includes a total of 31 Municipalities. The turnover of the district is estimated at 1.3 billion euros, with an export value of 850 million (representing about 65% of the turnover and 45% of the total national exports for the sector). Almost 400 companies operate within it, of which 90% have fewer than 50 employees. However, some market leaders are also present in the area. The Piedmont’s Cusio-Val Sesia cluster specializes in OEM and tier 1 production of such items as valves and taps, relying on a supply chain network of foundries, forgings, mould making and machine tool and dies manufacturers.
In the region of Lombardy - the Lumezzane Cluster (Brescia) is known for its taps, shut-off taps and valves. Most of the companies in the sector specialize in the production of only one of these products. Cases of companies operating in both sectors are rare because the skills required and the reference markets are completely different. Jointly, the industrial districts of Cusio-Val Sesia (Piedmont) and Lumezzane (Lombardy) generate over 9 billion euros in revenue, and export 65% of what is locally produced abroad. Within these two distinct clusters over 60,000 people are employed either directly or indirectly via related manufacturing and commercial establishments.
In the Veneto region, in North-Eastern Italy, the Verona-Rovigo-Padova cluster holds a primacy not only in HVAC, thermodynamic equipment, boiler shells, tanks, vats but also in heat generators, burners, water heaters, gas convectors and hot air generators, chillers, fan coils and conditioners.
Back in the 1980s the Veneto cluster employed over 3,000 and counted mostly small enterprises, now the district has over 170 mid to large size companies including noted market leaders as Ferroli, Riello, Aermec and ICI Caldaie.
Italy’s plumbing and HVAC industry is export focused with the North American market being a primary destination for Made in Italy technology. In 2020, Italy exported over 2 billion euros worth of plumbing and HVAC technology for industrial, commercial and residential applications in Canada and the US. Approximately 91% of Italy’s sector exports were bound for the USA.
The USA is the third largest export market for Italian plumbing and HVAC technology and the largest outside of the EU, while Canada ranks 33th.
In 2020 Italy’s top export category of HVAC & Plumbing technology to the US was HS 8481 or taps, cocks, valves and parts for pipes, boilers, tanks and vats with a sector (import) with 562 million euros representing 8.56% of Italy’s global exports for these products. Italy ranks 8th in US imports of these products, with 5.75% market share. While for the Canadian market, Italy’s top export category within HVAC & Plumbing technologies is HS 8481 or taps, cocks, valves and parts for pipes, boilers, tanks and vats with a sector (import) of 64 million Euros representing just 0.98% of Italy’s global exports of these products. Italy is the fifth largest supplier of these products to Canada with a market share of 4,14%.
One of the main outlets for Italian plumbing and HVAC technology in North America is the residential and commercial construction industry, illustrating the sector’s strength within both Canada and the USA, thus driving Italy’s exports.
The speakers provided insights on Italian technology that will be showcased at the trade show and emphasized key facts regarding Italy’s dynamic plumbing and HVAC industries.
Regarding HVAC, Italy holds a number of industry firsts. According to the Association of the European Heating Industry - Ehi - market report, Italy is the largest EU market for hybrid heat pumps. Gas condensing technology remains Italy’s best-seller, due to an extensive gas network and the affordability of gas.
This rise of Italy as global leader in heat pumps started in 2018 when over 775,000 new, energy-efficient and renewable-based heaters were installed throughout the country, noting an increase of 10% over 2017. This growth, which has continued in the proceeding years, is due primarily to central government policies and incentives to invest in new equipment and infrastructures. Among new heaters installed, 94% were gas-condensing boilers - the most common efficient technology used to replace the stock of old and inefficient non-condensing boilers.
Even though solar thermal technology has been on a decline since 2011, electric heat pumps have enjoyed continual high growth rates reaching 33,500 units in 2018.
The Ehi report also indicates that Italy is the second-largest EU manufacturing country for heating appliances, which means heating will contribute in large part to a yearly job creation of over 115,000 jobs which the energy sector is set to create by no later than 2030.
Despite being a large market for energy efficient and renewable based heaters, installations of newer appliances continue to make only a small dent in the installed stock of old and inefficient heaters of Italy. This stood at a daunting 14,6 million systems (2017) and will take about 20 years to entirely modernise. The growth market potential is sizable.
Italy’s HVAC and plumbing technology prowess is based on the backbone of geographically confined industrial clusters where SMEs and larger companies share resources, expertise and create economies of scale.
The competitive advantage of being part of a cluster lies also in the fact that a specialization can develop, within the same sector, with different companies dealing with different stages of product processing. Also the clusters rely on subcontractors and lower tier-suppliers as well as assemblers, and OEMs. While in the case of plumbing and HVAC clusters in Italy, you may have suppliers of molds, foundries, key processors (turning, threading, chrome plating, gilding,...) and then satellite suppliers which step in during periods of increased demand.
Among Italy’s most prominents plumbing and HVAC clusters or “distretti industriali”, is the region knowns as Piedmont Cusio-Val Sesia (Novara, Verbano-Cusio-Ossola and Vercelli) which stretches across a mere 47 Km2 within the Piedmont region, and includes a total of 31 Municipalities. The turnover of the district is estimated at 1.3 billion euros, with an export value of 850 million (representing about 65% of the turnover and 45% of the total national exports for the sector). Almost 400 companies operate within it, of which 90% have fewer than 50 employees. However, some market leaders are also present in the area. The Piedmont’s Cusio-Val Sesia cluster specializes in OEM and tier 1 production of such items as valves and taps, relying on a supply chain network of foundries, forgings, mould making and machine tool and dies manufacturers.
In the region of Lombardy - the Lumezzane Cluster (Brescia) is known for its taps, shut-off taps and valves. Most of the companies in the sector specialize in the production of only one of these products. Cases of companies operating in both sectors are rare because the skills required and the reference markets are completely different. Jointly, the industrial districts of Cusio-Val Sesia (Piedmont) and Lumezzane (Lombardy) generate over 9 billion euros in revenue, and export 65% of what is locally produced abroad. Within these two distinct clusters over 60,000 people are employed either directly or indirectly via related manufacturing and commercial establishments.
In the Veneto region, in North-Eastern Italy, the Verona-Rovigo-Padova cluster holds a primacy not only in HVAC, thermodynamic equipment, boiler shells, tanks, vats but also in heat generators, burners, water heaters, gas convectors and hot air generators, chillers, fan coils and conditioners.
Back in the 1980s the Veneto cluster employed over 3,000 and counted mostly small enterprises, now the district has over 170 mid to large size companies including noted market leaders as Ferroli, Riello, Aermec and ICI Caldaie.
Italy’s plumbing and HVAC industry is export focused with the North American market being a primary destination for Made in Italy technology. In 2020, Italy exported over 2 billion euros worth of plumbing and HVAC technology for industrial, commercial and residential applications in Canada and the US. Approximately 91% of Italy’s sector exports were bound for the USA.
The USA is the third largest export market for Italian plumbing and HVAC technology and the largest outside of the EU, while Canada ranks 33th.
In 2020 Italy’s top export category of HVAC & Plumbing technology to the US was HS 8481 or taps, cocks, valves and parts for pipes, boilers, tanks and vats with a sector (import) with 562 million euros representing 8.56% of Italy’s global exports for these products. Italy ranks 8th in US imports of these products, with 5.75% market share. While for the Canadian market, Italy’s top export category within HVAC & Plumbing technologies is HS 8481 or taps, cocks, valves and parts for pipes, boilers, tanks and vats with a sector (import) of 64 million Euros representing just 0.98% of Italy’s global exports of these products. Italy is the fifth largest supplier of these products to Canada with a market share of 4,14%.
One of the main outlets for Italian plumbing and HVAC technology in North America is the residential and commercial construction industry, illustrating the sector’s strength within both Canada and the USA, thus driving Italy’s exports.