"Rising costs, from energy to raw materials, are weighing on companies' budgets. There has been a strong compression of margins, some are even working in the negative. The resilience of the industrial system is in danger. The imperative is to resist, and to do so you need the financial resources'. Thus Small Industry President Giovanni Baroni in an interview in Il Sole 24 Ore spoke about the emergency of the moment, namely energy. From his privileged observatory, he has his finger on the pulse of how SMEs, "that is, 90% of Italian companies" are experiencing this difficult economic phase, and he emphasised not only the high energy bills but also the lack of liquidity: "the ability to resist is different between large and small companies, which are already severely tested by the pandemic. Having liquidity to cope with the increases is a priority, not least because energy suppliers are demanding sureties from companies and many, unable to afford them, are resorting to suppliers of last resort'.

Energy and creditin fact, are two elements that are intertwined, also jeopardising another crucial factor of competitiveness: investment. Therefore, these two major issues will be at the centre of the debate at the Small Industry Forum, scheduled for Saturday 12 November in Mogliano Veneto, entitled 'Enterprises in transition, new routes for SMEs'.

According to Baroni, in order to support companies caught in the grip of energy prices and the lack of liquidity, 'timely measures are needed' because 'also worrying for industries is the lack of visibility and uncertainty about the outlook: in August we saw stellar gas prices, in October the level was much reduced. What will happen in the coming months is an unknown. The extension of the moratorium on Covid loans to companies is a step in the right direction, although it must be agreed with the EU to avoid complications. A state guarantee on supplies would also be appropriate, so as to avoid the demand for sureties from companies'.

In addition, the lack of liquidity has an obvious impact on investments: 'There is great concern about this,' emphasised the president of Small Industry. "It is clear that if companies have to spend more resources to meet costs, they do not have sufficient resources to invest. A circumstance that is also aggravated by uncertainty about the future. Investing, on the other hand, is essential to innovate and be competitive, an imperative for every company, made even more urgent by the environmental and digital transition'. What is needed is a targeted intervention: 'a measure, let's call it a new Industry 4.0, focused on transitions. Or an intervention on reinvested profits. There is a wide range of actions to put in place. The important thing is to do them and act promptly'.

And on the 30 billion for energy allocated by the government in the first council of ministers, Baroni said: 'It was a positive decision. Whether it will be enough will depend on the trend in gas prices. Lately it has been falling. But the scenario, I repeat, is uncertain. It will also depend on Europe. The European Union is totally lacking. Each country is moving according to its own interests, creating asymmetries within the Union. This penalises the countries most exposed to high energy prices, such as Italy, and also undermines the very idea of Europe. I hope that we will arrive at a common action as soon as possible, the markets will react positively'.

The President of the Small Industry also dwelt on the effect that pandemics and high energy prices have had on the shortening of supply chains: 'The return of production can be an opportunity for our companies. But in order to modify and innovate production according to the new requirements, investments are needed. So let's go back to the initial speech: in this phase we need to resist, to have the resources to do so and to invest'.

Finally, Baroni focused on another critical issue, not only for SMEs but for businesses in general: the lack of suitable profiles and the fundamental work that Piccola Industria has always done to build and strengthen the school-business bridge. Vn Friday 18 November is Pmi Day, the National Day of Small and Medium-sized Enterprisesand as every year since 2010, the factories will open their gates to students and families. "We have had record adhesions in the area," he said. "This year's theme has created a great deal of interest: it is beauty, as the added value of Made in Italy, which is expressed in every sector of our manufacturing and in the workplace. The factory is no longer grey, but beautiful, as a place of innovation, of creating the future. We must create the aspiration of working in the factory. And this is the message we will give on Pmi Day'.