Our company is deeply rooted in the Italian territory, but we are constantly looking toward the rest of the world. First and foremost, it is important to consider our company within the context of the European market, for which we outline the current situation and future prospects.
Tierre Group in Europe
We are present in all countries of the European market: 19.40% of these are direct customers, while the remaining 80.6% are our distributors. 48.64% of our volume comes from direct sales, while the remaining 51.36% is developed through distribution. Reliability, competence, experience, commitment, precision, and uniqueness are the added values that guarantee our competitiveness at the European level. In line with the rigor that has always distinguished us, all our products are certified in compliance with Italian, European, and international standards.
Europe: A look at the current context
In Europe, 2021 recorded percentage variations in exports especially in countries such as the Netherlands (+49.2%), Belgium (+30.7%), the Czech Republic (+28.5%), Austria (+24.3%), Turkey (+24.1%), Romania (+21.32%), and Spain (+21.8%). Italy recorded a +16.8%, in line with neighbors Germany (+17.3%) and France (+10.0%). Further down are Poland (8.7%) and Russia (5.0%).
The industrial sectors that recorded the best performance are: Crude Oil, Refining, Natural Gas, Chemicals, Agriculture, Paper-Printing, Leather Goods, Clothing, and Metals.
The impact of economic activity was broad and generalized: all components of domestic demand contributed positively to the 2.0% rebound in GDP (2.1% in the euro area).
Ecological transition
In light of the growing attention companies are paying to environmental health, the keyword for analyzing the current European market is “ecological transition”: the term highlights the need to adopt a technological innovation process that takes into account respect for environmental sustainability criteria, a theme that we at Tierre care about particularly.
The ecological transition is reflected in areas such as:
- the agricultural sector, which adopts a circular economy and aims to reduce CO2 emissions and the use of polluting fertilizers;
- the energy sector thanks to renewable energy, investments in hydrogen, and the redevelopment of nuclear power plants;
- the automotive sector with the redevelopment of plants and the intent to achieve zero-emission mobility;
- the oil & gas sector, with a definitive stop to drilling.
- the pharmaceutical sector with the protection of biodiversity.
In addition to these, we also highlight the chemical, industrial, steel, and food sectors. All the mentioned areas are experiencing great ferment and could contribute to fueling the European economy in the coming years. In this context, we at Tierre will also be able to make a contribution through products used in the mentioned sectors, which are designed with a focus on sustainability.
European market: growth trends and future forecasts
In the European market, short-term growth prospects could be hindered by rising energy prices, particularly natural gas and electricity. After a sharp drop in 2020, prices have increased at dizzying rates in recent months, even exceeding pre-pandemic levels. However, as they are largely linked to the post-pandemic reopening and the consequent economic adjustment, price pressures are expected to be largely transitory: after reaching 2.4% in 2021, inflation in the euro area is expected to fall to 2.2% in 2022 and 1.4% in 2023, as energy prices are expected to stabilize gradually from the second half of the year and supply and demand imbalances should resolve.
Despite temporary critical issues, therefore, the European Union is expected to continue to expand: in 2021, it reached a growth rate of 5.0%, a result 0.2 percentage points higher than initially forecast. Growth will be supported by an improving labor market, with still-high savings and favorable financing conditions, which will be accompanied by the full deployment of the Recovery and Resilience Facility (RRF), which is part of the Next Generation EU (NGEU) program, agreed upon by the European Union in response to the pandemic crisis.
Economic activity in the EU is therefore expected to increase by a solid 4.3% (as in the euro area) in 2022, before decelerating to 2.5% (2.4% in the euro area) in 2023. The pace of growth is estimated to remain uneven across countries and sectors, with the EU looking set to resume its path of economic convergence. By the beginning of 2023, in fact, real GDP should converge toward the steady growth path expected in Europe before the pandemic.
Finally, the labor market is expected to complete its recovery this year, laying the foundations for the ongoing economic expansion. It is estimated that about 3.4 million jobs will be created between 2022 and 2023, bringing the unemployment rate in the EU down from 7.4% in 2020 to a projected 6.5% for 2023. It is also estimated that investments financed by the RRF and related structural reforms will boost productivity growth at a sustained pace, with a percentage increase of 2.9% in 2022 and 1.6% in 2023.
With our minds always open to new horizons, we at Tierre are ready to seize the challenges and opportunities that the European market will present to us in the coming years.