Economic Satellite Businesses

We believe in an economy that is a system of relations, an integrated dynamic network, built over time to create and exchange value. Thanks to a competitive production model that is strongly linked to the Italian production network, Fincantieri generates additional impact on the Italian economy.

According to a Censis study, Fincantieri’s production multiplier is 4.05. This means that for every euro of additional production in Fincantieri, another 3.05 euros are activated in the rest of the economic sectors. Overall, in the Italian economy, 100 euro of Fincantieri production generates 405 euro of production. The transfer of value in the area where a production site is located benefits a supply chain that mainly consists of small and medium enterprises. Such an important impact reflects a purchasing model that historically favours the national dimension, which also guarantees stability, visibility in terms of work, planning for the future and dimensional and technological growth.

Equally important is the knock-on effect in terms of employment. The impact on employment can be calculated by initially considering direct employment, that is direct jobs at Fincantieri in Italy involved in shipbuilding, to which first-tier indirect employment is added, that is jobs at Fincantieri contractors, as well as second-tier employment, represented by jobs at sub-contractors and personnel working at the supplier’s site. It is necessary to add to this final employment figure the satellite business jobs due to consumption by the employees’ families.

• Direct and indirect effect: Fincantieri employs 10,621 people in shipbuilding in Italy. Its presence triggers a direct and indirect employment multiplier of 5.0; i.e., for every Fincantieri employee, 4.0 are activated in the sectors supplying the production process, which altogether correspond to 42,631 employees in the satellite businesses (total 1st and 2nd tier indirect).

• Induced effect: more than 14,000 jobs are generated by the spending of the families of the 53,252 people employed, directly and indirectly activated by Fincantieri.

• Total effect: therefore considering the direct, indirect and induced effect, the total employment multiplier comes to 6.3, for a total employment attributable to Fincantieri’s shipbuilding activity of approximately 67,350 units.

In other words, for every 10 Fincantieri employees employed in Italy in ship design and construction, another 53 are employed outside.