Foreign-controlled multinationals play a far larger role in Italy’s economy than their numbers suggest – and recent U.S. policies encouraging reshoring could have ripple effects across the peninsula.
A new analysis highlights just how deeply U.S.-owned firms are woven into Italy’s industrial fabric, revealing both their benefits and the potential risks tied to shifting global strategies.
Foreign-controlled firms represent only about 1.2% of all Italian businesses, yet they employ nearly one in ten workers and generate over one-fifth of national revenue. These companies tend to operate in larger, more capital-intensive sectors such as manufacturing, and their productivity consistently exceeds that of Italian-owned firms. In the South – the Mezzogiorno – the gap is even wider, underscoring the crucial role foreign investors play in modernizing local industries.
The export numbers tell a similar story. Multinational subsidiaries account for roughly 30% of Italy’s manufacturing exports and more than one-third of total export value. Most of this activity is concentrated in northern regions, especially Lombardy, Piedmont, and Emilia-Romagna. Yet in parts of the South, a small number of foreign firms are responsible for a surprisingly large share of exports. In Sicily and Basilicata, for example, over half of regional exports come from multinational operations. This makes these areas both globally connected and uniquely vulnerable to foreign business decisions.
Among foreign investors, U.S.-controlled companies stand out. They are the top employers, providing jobs for about 350,000 people – roughly a quarter of all workers employed by foreign firms in Italy. They also lead in value added, accounting for more than 20% of total output from foreign-owned companies, and they rank near the top in R&D investment. In 2022 alone, American firms in Italy exported an estimated €43 billion worth of goods, about one-fifth of all exports generated by foreign subsidiaries. Four regions – Lombardy, Piedmont, Emilia-Romagna, and Lazio – together produce almost two-thirds of this total.
The concern lies in what might happen if U.S. reshoring policies intensify. With Washington pushing to bring industrial production back to American soil, Italian regions heavily reliant on U.S. firms could face serious consequences. Local economies that depend on these multinationals for jobs, research, and exports might see reduced output, lower investment, and weakened growth prospects if companies decide to scale back or relocate.
The report paints a nuanced picture. On one hand, foreign multinationals – especially those from the United States – have brought capital, technology, and international reach that strengthen Italy’s competitiveness. On the other, their dominance in certain regions creates structural dependencies that make local economies sensitive to global corporate realignment.
In the coming years, Italy’s challenge will be to preserve the advantages of foreign investment while reducing vulnerability to external shocks. Building stronger domestic value chains, supporting homegrown innovation, and deepening European industrial cooperation could help balance that equation. In a global economy where production lines stretch across continents, resilience may prove to be Italy’s most valuable asset.
