Sardinian companies, 4% will not reopen in 2021

Percentage higher than the national average. Low recourse to smart working

To measure the negative effects of Covid on the Italian economy, Istat is continuously analyzing companies. In a well-documented report recently released, the statistics institute recorded the state of business activity of companies in November 2020 (closed, open, partially open), the use of smart working and, above all, the forecast for 2021 (growth or decline in turnover). It emerged that companies in Sardinia have a higher percentage of potential closures (4% against a national average of 1.7% at the end of 2020), have recorded a larger drop in turnover (4% against a national average of 1.9%) with a higher peak for those that also work in the tourism sector (-32% drop against - 29% nationally) and will also record a negative one until February 2021 (4.8% against 3.2%). On the smart working front, Sardinian companies are a little behind: 7.1% have resorted to it compared to 11.1% of the national average. As far as the request for financing is concerned, Sardinian companies have requested those with a public guarantee more significantly than the national average (42.3% against 37.7%). Below - reworked at Cipnes Gallura - are all the data from the ISTAT survey, useful for understanding the outlook for Sardinia's economy and labor market.

IMPACT OF COVID. State of the enterprise as of November 2020. Totally open: 15,447 Sardinian companies, equal to 65.6% (national average of 68.9%). Partially open: 5804, equal to 24.6% (national average of 23.9%). Closed but plans to reopen: 1314 companies, equal to 5.5% (national average of 5.4%). Closed and do not plan to reopen: 961 companies, or 4% (national average of 1.7%).

Percentage in turnover in June-October 2020 compared to June-October 2019. No turnover achieved: 933 Sardinian companies, equal to 4% (national average of 1.9%). Shrunk more than 50%: 3684 companies, or 15.7% (national average 13.65%). Reduced between 10 and 50%: 10912 companies, or 46.4% (national average of 46.45). Reduced by less than 10%: 1517 companies, equal to 6.5% (national average of 9.5%). Turnover was unchanged: 4631 companies, or 19.7% (national average of 19.9%). It increased less than 10%: 730 companies, or 3.1% (national average of 3.8%). Increased more than 10%: 1119 firms, or 4.8% (national average of 6%).

Reasons for the decline in turnover. For the drop in demand as a result of restrictions: 9826 companies in Sardinia, equal to 41.8% (national average of 41.4%). For the decline in domestic demand for goods or services (including tourism demand): 7698 companies, or 32.7% (national average of 29%). For the decline in demand from abroad for goods or services (including tourism demand): 2147 firms, or 9.1% (national average of 9.7%).

Projected change in turnover in December 2020-February 2021 compared to December 2019-February 2020. Will not be achieved turnover: 1121 Sardinian companies, or 4.8% (national average of 3.2%). Will decrease more than 50%: 3759 companies, or 16% (national average of 14.8%). Will decrease between 10% and 50%: 8569 firms, or 36.4% (national average of 39.4%). Will decrease less than 10%: 1499 firms, or 6.4% (national average of 6.3%). Will remain essentially unchanged: 3019 firms, or 12.8% (national average of 14.8%). Will increase by up to 10%: 204 firms, or 0.9% (national average of 1.4%). Will increase more than 10%: 284 firms, or 1.2% (national average of 0.9%).

STAFF MANAGEMENT MEASURES FROM JUNE 2020 TO NOVEMBER 2020. Smart working: 1661 companies in Sardinia, equal to 7.1% (national average of 11.1%). Reduction in hours: 4987 companies, equal to 21.2% (national average of 22.2%). Increase in hours: 580 companies, equivalent to 2.5% (national average of 1.7%). Use of redundancy fund: 9378 companies, equal to 39.9% (national average 41.1%). Compulsory vacations: 4703 companies, equal to 20% (national average 21%). Reduction in fixed-term staff (contracts not extended): 2616 companies, equal to 11.1% (national average of 7.4%). Reduction in permanent staff (layoffs): 350 companies, equal to 1.5% (national average of 1.3%). Postponement of planned recruitment: 4242 companies, equal to 18% (national average 12.5%). Recruitment of new personnel: 894 companies, equal to 3.8% (national average 4.2%). Additional staff training: 6210 companies, equal to 14.2% (national average 13.1%).

SMART WORKING EFFECTS. Labor productivity. Increase: 92 Sardinian companies, equal to 0.4% (national average of 1%). No effect: 1140 companies, equal to 4.9% (national average of 6.9%), Decrease: 429 companies, equal to 1.8% (national average of 3.2%). Operating Costs. Increase: 396 companies, or 1.7% (national average of 2.4%). No effect: 1072 companies, equal to 4.6% (national average of 7%). Decrease: 193 firms, or 0.8% (national average of 1.7%).

FINANCING. Use of liquid assets on the balance sheet (bank deposits): 6667 companies in Sardinia, equal to 28.3% (national average of 24.8%). Use of non-liquid assets (sale of real estate or capital goods): 405 companies, equal to 1.7% (national average of 1.4%). Use of available margins on credit lines: 4185 companies, or 17.8% (national average of 18%). Changes in payment terms with customers: 1825 companies, or 7.8% (national average of 8.3%). Changes in payment terms with suppliers: 4746 companies, equal to 20.2% (national average of 19.2%). Acquisition of new bank debt (including public guarantees): 9185 companies, equal to 39% (national average of 35.4%). Use of alternative instruments to bank debt (bonds): 409 companies, equal to 1.7% (national average of 1.2%). Capital increase by ownership: 463 companies, equal to 2% (national average of 2.9%). Capital increase by outside lenders: 150 companies, or 0.6% (national average of 0.1%). Firms applying for loans backed by government guarantees from June to November 2020: 9944 firms, or 42.3% (national average of 37.7%).

Here is the link to the full ISTAT report: https://www.istat.it/it/archivio/251618