Reggio Emilia manufacturing grows via exports despite rising costs

Manufacturing in Reggio Emilia continues to grow according to the second quarter 2026 survey by Confindustria Reggio Emilia, though the momentum is becoming more selective. Industrial production rose by 3.2% and total turnover increased by 3.1% compared to the same period in 2025.

Growth is primarily driven by exports, which rose by 3.9%, while the domestic market saw a decline of 1.1%. Employment remained stable with a 1.0% increase.

Despite current growth, business expectations for the coming months have turned negative across all indicators. A majority of companies do not expect production or order volumes to change, while a significant portion anticipates a decline. Rising costs are a major concern; 95.2% of companies reported increases in raw material costs, and 90.5% noted higher logistics expenses. Approximately 81% of businesses stated these rising costs are eroding profit margins.