Make or Buy: the Italian companies confirm the trend


Make or Buy: the Italian companies confirm the trend

Grant Thornton, the international consulting Network, has recently released the interesting results of an analysis of the first six months of the year, concerning the attitude of the Italian companies.

The data show that, despite the international situation complicated by the ongoing pandemic, 23% of our businessmen is optimistic about the economic forecast over the next 12 months, trend shared from the rest of Europe, where the optimists are 29%.

We have examined which market factors the companies perceive as a greater risk nowadays and we have discovered that 68% of the people interviewed fears uncertainty (66% if we consider Europe).

This is not a surprising data if we position it in the current Covid scenario, with its limitations and short-term plans.

However, the companies do not want to stand by and watch and many of them, in order to reduce the risk of a new closing of borders, have chosen to bet on a “make” strategy rather than on a “buy” one.

In the industrial field, what does “make or buy” mean?

The formula indicates a company’s choice to produce by means of its internal resources (make), or to obtain supplies of external products, components or services (buy) necessary for the final production.

The choice entails the evaluation of different aspects of the production, among which:

  • cost analysis
  • the availability of (human) resources and skills
  • external availability of the components


Cost analysis
The cost of the internal production is lower than the external supply, but only if the company is in a position to produce at peak efficiency, that is with already qualified staff and ready and optimized tools.

A lower production cost results in an optimized cost for the customer.


Availability of human resources and skills
The possibility to rely on already trained and skilled resources, with the aim of internalizing at least part of the production, allows to immediately operate at full capacity, without affecting the chain of costs and thereby representing an added value in terms of competence and quality.

The production entrusted to the qualified staff is constant quality assurance for the customer.


Availability of the components
Constancy in terms of time and quality in supplying the components has always been an important risk factor. Following the Covid emergency and the difficulty in moving people and goods, the problem has become even more urgent.

Thanks to the choice “make”, the company can guarantee constant supply and assistance even with closed borders.

This is what happended to ELBA that, thanks to the internal production of the majority of the components necessary for the creation of its machines to produce bags, thermo-shrinking bags and pouches, has been able to guarantee constancy of supplies and assistance to its customers, even during the lockdown.


Make: ELBA’s reasons



Thanks to our choice to produce in-house almost the totality of the components that constitute our machines for bags and pouches, we can guarantee a direct control on the activities. This results in constant and high quality assurance for our customers.



By reducing our dependency on the external suppliers and the foreign markets, we guarantee the delivery terms established with the customer, that does not need to worry about delays in the supply of machines, spare parts or assistance services.



Our team’s high skills are always integrated by training courses and on-the-job-training, that allow us to actively participate in every project with the maximum technological know-how.


Eventually we are proud to valorize, with this choice, also our territory.
The production of a lot of our components inside the company results in more job opportunities and in the maintenance and the constant growth of a technological know-how that has been characterizing us for a lot of years and that we cultivate day after day.


Between perception and reality: the Italian economic as it really is

Optimism and pessimism derive from a perception of reality that is more or less justified by subjective and objective variables.

Beyond our perception, the Italian industry is present.

Looking at the data, the Confindustria study Centre notices a growth in the industrial production of 7,5% in July compared to June.

The production, net of the different number of working days, in July decreases by 13,9% compared to the same month in 2019; in June it is estimated to decrease by 18,6% per year. The orders register conjunctural volume increase both in July (+6,6%) and in June (+5,4%).

Therefore, after the low point that was reached last April, the dynamics of the Italian industry production has registered significant progress.

And these are data, not perceptions.
Come on, then, full ahead.