Milan
is unique among Italy’s major cities for being mainly a business
rather than a tourist city. In the increasingly global market, large
international companies usually choose Milan over
Rome for their Italian headquarters.
The city is well located being closer to the heart of Europe
and it also enjoys a temperate climate, has a modern infrastructure,
efficient transport network and offers a well-educated, dynamic
labour force. Unemployment figures in 2002 were 6.5 per cent, considerably
less than the national average of 9.1 per cent. However, with the
problems after September 2001 and the global collapse of many telecommunications
companies and the current serious downward revision of the world’s
stock markets, this rate is bound to rise over the next year. The
workforce is young with 40 per cent under the age of 35 and intellectual.
Milan’s five universities contribute heavily to research,
innovation and the supply of bright youth into the workplace. Since
1998, far more women than men have entered the workforce. This is
partly due to younger women ignoring the traditional Italian stereotypes
and partly because women account for more of the temporary and contract
positions. Despite problems since the telecommunications crash of
2001, there is still an acute shortage of trained workers within
the construction, information and communication technology; in that
same year the Italian government was still forced to establish special
immigration quotas for these positions.
Milan’s economic success in the early 20th century was based
on manufacturing, particularly in the car industry. Pirelli
and Alfa Romeo remain intrinsic symbols of the
city and have been joined by textile manufacturers including Aurelio
Valentino and in the pharmaceutical industry, such as Unilever,
Panexport Italia and European Generics
Vanderval Group.
The Italian giant Marzotto, which own Calvin Klein,
have their retail headquarters in Milan. Increasingly, however,
Milan’s success has been in the service sector, where 63.5
per cent of the labour force is employed.
Armani,
Versace and Valentino may hog
the limelight but the increasing diversity in and the growth of
the media, finance, fashion, publishing, design and communications
sectors underpins the city’s prosperity.
The Italian headquarters of many major international banks, including
as Citicorp, can be found close to Italy’s
stock market located in Piazza Affare. Both the
state-owned television company, RAI, and Mediaset,
the media empire of Silvio Berlusconi, are based here, as well as
the Italian publishing giant Arnolfo Mondadori.
Iinvestment in the city’s international trade forums has been
extensive and State-of-the-art conference facilities have opened
at Filaforum in the Milanofiori district, Palazzo
Affari in the financial centre, and three new pavilions
in the Fiera district, Milan’s dedicated trade fair.
The Fiera
will move to new headquarters in Rho-Pero during 2004. The current
site will become a huge park with cultural facilities, museums and
possibly the new home of RAI, Italian state television.
The new Fiera will be equipped with high-tech communications-oriented
facilities. Designed by architect Massimiliano Fuksas,
the new site will be 2 million square metres (about the size of
57 football stadiums), the largest trade fair site within Europe.
Milan’s economic future looks bright. The city continues not
only to exploit the strength of its financial markets and its fashion
fairs during February and September but also new revenue sources
from the fast growth of investment in Internet technology.
The technology fair in October, hosted by SNAU,
has become one of the largest of the year, with over half a million
visitors and 2,900 exhibitors. Internet companies including Lycos,
Yahoo and Altavista have all based
their Italian operations in Milan, along with homegrown Internet
providers Arianna and Virgilio.
The result is a mecca for business travellers who spend over 100
billion Euros in the city per annum.
The introduction of the Euro has brought mixed blessings. Rounding
up prices has meant that the Italian cost of living has risen by
approximately €550 per year (the equivalent of around £350
or US$535) although some prices are currently falling due both to
competition and reaction to overpricing. However, centralised economic
control may well stabilise the economy to a level previously unimaginable.
Business Etiquette
The Italian laid-back attitude to life does not normally extend
to their working day, and their approach to business is fairly formal.
Appointments for meetings should be made in advance and punctuality
is respected. Business cards are commonly exchanged by way of introduction.
Smart dress is always appropriate and in keeping with the city’s
stylish reputation, the Milanesi dress up at every occasion.
Most executives will speak English but will appreciate a visitor
who makes a effort to speak their language. Italian associates should
always be addressed as Lei (the polite form of tu) unless otherwise
indicated.
Normal business hours are 0900 hrs
-1700 hrs, but executives often work longer hours.
Milan’s business pace is fast and more like London than Rome,
and things like long, leisurely lunches are much less common. Invitations
to the homes of Milanesi are rare, as many live a considerable distance
from where they work. In spite of the pressures at work, the Milanesi
like to enjoy life and there is a lot of after-work relaxing in
bars. If concluding a business deal, rather than long lunches or
protracted meetings in the afternoons, discussions are likely to
continue after working hours in the bars or restaurants of the city’s
top hotels. |
