An analysis of the professional needs of the local system of Prato

This report aims to support the “Work Observatory,” established in 2021 on the initiative of Co.ge. F.I.S. (Management Committee of Funds for Social Interventions, consisting of Confindustria and CGIL, CISL, and UIL) and the Municipality of Prato, in planning policies within the “Local Pact for the Development and Strengthening of Skills,” signed by the local administration with the Tuscany Region.

We would like to thank Elena Cappellini and the Statistics Office of the Municipality of Prato in general for the helpful exchange of data and ideas.

The work was edited by Silvia Duranti, Natalia Faraoni, and Valentina Patacchini, coordinated by Leonardo Ghezzi, director of the Economic Situation and Structure Research Area at IRPET.

Editing by Elena Zangheri (IRPET).

Prato is one of Italy’s largest industrial districts, one of Europe’s largest textile centers, and one of the world’s leading hubs for the production of wool yarns and fabrics. The district’s over 6,600 companies (Ateco 13, 14, and 15) produce fabrics for the apparel industry, knitting yarns, knitted products and garments, nonwovens, and specialty textiles for industrial uses. The textile and apparel sectors together generate an added value of €1.629 billion and have a total export value of approximately €2.66 billion.

Prato thus embodies the archetype of the industrial district, a true socioeconomic actor, where the high division and specialization of labor among small businesses ensures speed and flexibility of production, maintaining a balance between competitiveness and cooperation, thanks to the creation of numerous economies external to the businesses but within the local area.

Among the main competitive factors of small and medium-sized business districts, a key role is played by the presence of human capital possessing a specific professional heritage, consisting of knowledge and skills consistent with the local production specialization. Closely related to this is a second key factor: the presence of social capital, consisting of shared values, from a work ethic to the role of entrepreneurship as a social elevator, and strong relationships of trust, which reduce the costs of coordinating production activities. Together, human capital and social capital generate the so-called “industrial atmosphere” that pervades the district, where all human activities revolve around production specialization or, at least, are strongly influenced by it. (…)