RESHORING ANALYSIS

Team members:

Claudia Amadio Riccardo Dell’Anna

Laura De Paris Martina Paladin

Alessandro Ursino

Giorgio Veneran Jessica Viotto

SOME DATAS

Aku: sport systems producer in the district of Montebelluna

Business: production and commercialization of technical footwear of hiking and mountaineering

Turnover: 21,5 million €

336 employees: 56 in Italy, 280 in Romania

60%25%15%

Far East Italy Romania

Production:

Sales: 45%30%25%

Abroad (others)Italy

-USA

-Japan

-Germany

Source: Testimony of the CEO Paolo Bordin, 10/02/2015

1st 2nd

OFFSHORE PROCESS Due to the cheaper workforce costs in 1996-97 started a delocalization process articulated in 2 main phases:

•Establishment of an owned plant in Cluj Napoca: Romanian employees worked side by side with Italian ones in order to share the know-how

Work with contractors in the Romanian territory that caused many problems such as: • quality problems • opportunistic behavior • loss of control • difficulties in the coordination of activities

CONSEQUENCESAku handled out

the entire production in

Romania

2010

2009

Financial collapse due to economic crisis and the credit contraction

2008

2005

Financial problems connected with the

investment in Romania

Canadian partnership to

cut manufacturing

costs

WHY RESHORING?

Loss of knowledge in the Italian headquarters

Inability to exploit synergies due to geographical proximity

Need to build a strong corporate and branding identity

Enhancing the core business promoting the MADE IN ITALY

2010 RESHORING

Communication instrument

Promotion of the corporate identity

Synergies with the design and

marketing offices

Geographical proximity but

cultural differenceReshoring based not on costs but on quality

FUTURE EXPECTATION PERSPECTIVES

Management does not believe that there will be room for further reshoring mainly because of labor cost differentials, especially in the production of low range products:

•Romania: average cost of labour per single peace produced = 20€ •Italy: average cost of labour per single peace produced = 60€

The main challenge for the company in the next future will be to maintain the advantages of the strategies previously identified.

THANK YOU FOR YOUR ATTENTION