SHOCK in the Italian shoe industry
Being one of the most relevant segments in Italy, the FOOTWEAR sector has requested the immediate help of the government to rebuild its structure and activity, notably damaged by the coronavirus pandemic.
The quarantine status, now extended by the government until May 3rd, has caused terrible damage to the third European economy, which has been paralyzed since mid-March.
Thus, the government faces strong pressure from the business-industrial sector for the relaxation of confinement measures, while on the other hand, it tries to ensure the health of the population.
It is given by the potential and recognition it has within the industrial segment, not only in the domestic market, but also in the international one, where it has a considerable export quota.
Currently, according to ASSOCALTURIFICI, the Italian association of shoe manufacturers, the sector is made up of 4,300 companies and 75,000 employees, with an annual turnover of 14,300 million euros, of which 85% corresponds to exports.
It was the route chosen by the entity to make its requirements to the government, which it considers essential for its recovery.
The requests contained in the ASSOCALZATURIFICI Manifesto to the authorities include the immediate reopening of strategic commercial activities and gradual resumption of commerce in general, a wide flexibility in the management of working hours, to guarantee the safety of employees. In addition to establishing responsibility of the company in case of contagion, even when essential prevention measures are taken.
Regarding the financial aspect, the association requests the opening of non-reimbursable financing lines for resumption of production activities, creation of a tax credit equivalent to 60% of the loss value of turnover in 2020 and the reduction of tax rate until July 2021 in proportion to turnover loss.
Other requirements include the 10-year extension of repayment plans for all new state-guaranteed loans and accessibility to financing also for companies in economic difficulties. The cancellation of tax and social security contributions for companies related to the months of April, May and June 2020 is added; the extension of the Covid-19 integration fund for at least 6 months, and the total tax exemption of expenses for the security of companies.
Finally, the statement highlights the serious damage that the health crisis caused to productions for the Spring/Summer 2020 season, which will have repercussions in Autumn/Winter 2020-21, due to the cut in customer orders, and consequently will make it impossible to invest in subsequent collections.
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