RESHORING CASE

Iccab

Company details
Code: 
Iccab
Company name: 
Iccab
Company country: 
Italy
Number of employees: 
300
Sector: 
C - Manufacturing
Sector detail: 
C14 - Manufacture of wearing apparel
Sub-sectors: 
C14.1 - Manufacture of wearing apparel, except fur apparel
Reshoring details
Reshoring announcement date: 
03/11/2015
Starting implementation date: 
January, 2014
End of Implementation : 
January, 2017
Reshored to: 
Italy
Location code: 
IT
Reshored business function: 
Production
Partial or Total reshoring: 
Partial
Reasons for reshoring: 
"Made in" effect
Automation of production process
Change in total costs of sourcing
Delivery time
Exchange rate risk
Logistics costs
Loyalty to the home country
Poor quality of offshored production
Case narrative: 

Iccab is an Italian apparel company, well known for manufacturing the brand "Marina Militare" (Italian Navy).

According to the news, the company has been backshoring up to 40% of its production from China to Italy over the last few years. Panerai, the owner of the company, stated that changes in the exchange rate between the dollar and the euro have created extra costs for imports from China. Other reasons for the repatriation included the high quality of production in Italian industrial districts and out of loyalty to the country. The latter could be an important strategic move as the company's contract with the Italian Navy will expire in 2020, and a display of patriotism could help to ensure the extension of the Marina Militare license.

Sources: 

Il Sole 24 ore, 03 November 2015

Il Sole 24 ore, 23 May 2016

Offshoring details
Offshoring location: 
China
Offshored business function: 
Production
Offshoring governance mode: 
Third party (external suppliers)
Notes: 
Number of employees from http://www.marinamilitare-sportswear.com/media/news/marinanews/CORRIERE_DELLA_SERA_ECONOMIA_14_12_15.pdf