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Unveiling the Impact of Public Procurement on Italian Businesses

In the PMI 2023 Osservitalia Report, Cerved has analyzed the characteristics of companies that secured public contracts between 2016 and 2022, with the aim of assessing the impacts of these awards on growth, employment, productivity, and risk. The primary findings of the study reveal that engaging in Public Procurement (PP) and collaborating with the Public Administration (PA) results in a 15.5% increase in turnover (a notable 20% in the Southern regions) and a 10.5% increase in employment compared to companies that do not secure contracts.

Therefore, Public Procurement emerges as a significant lever of industrial policy capable of generating growth, employment, and competitiveness, although with varying impacts on different enterprises.

Some data on Public Procurement: Analyzing the Italian Public Procurement landscape, in 2021, the PA disbursed a substantial 211 billion euros through public tenders for the acquisition of goods and services, equivalent to 11.8% of the GDP.

While this represents a crucial element, especially during periods of significant crises such as the Covid pandemic, it also underscores the need for optimal allocation of public funds. In 2022, 1.5 billion euros were allocated to approximately a thousand companies that subsequently exited the market, and 4.5 billion euros to another 3,000 that were unable to improve their performance. On the other hand, 14.4 billion euros reached 10,000 companies capable of benefiting from it.

Data, technologies, algorithms, and an evidence-based approach can, therefore, be useful tools to avoid inefficient allocation of public resources or to identify companies to focus on.

The PMI 2023 Osservitalia Report has also analyzed the economic reversal expected in 2023, following the strong performance of SMEs in 2022 (with a 6.1% increase in turnover) and less optimistic forecasts for 2024-25.

The estimates reveal higher levels of risk (up to 8.5% in the most pessimistic scenario), a slowdown in revenue growth (from +2.2% in 2023 to an average of +1.5% in 2024), and a contraction in Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA), with more significant impacts on companies in the Construction, Energy, and Utility sectors.

For further information you can download the full report Osservitialia 2023 at the link:

Written by Cerved

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