Mr. Cortesi (Co.El. spring factory): "After the lockdown, we got a second wind"

Lecco, October 12, 2020 - Last April, Italians saw Angelo Cortesi, owner of Co.el Srl, voice his concerns on the national TV, walking around his empty spring making facility, temporarily shut down due to Ministerial Decree. Today, six months later, we asked him an interview to take stock of the situation: how is the production of springs and elastic parts doing? Which are the driving market outlets? And what impact is Covid-19 having on his business?

How are things going? How have things changed since last April?
Much better. Already since May, we have resumed our production, and our sales volumes have increased. We have recovered everything we had lost during that dark period, reaching in September +11% year-on-year.

So, it looks like it's going great, isn't it?
I’m still very concerned about the future. I don't think there will be another company shutdown across the whole of Italy again. However, I’m worried about a possible drop in orders if the situation keeps getting worse. The economic context does not appear to be as bad as in 2008, but there is a lot of uncertainty. Beyond and above all this, I am concerned about the health of those who work with me.

Are the other spring makers in the same situation as you?
As far as I know, yes. The lockdown has been very hard. Even for some companies that remained open, it wasn't worth it because the turnover was to the bone. In the last three to four months, a positive phase of recovery has started for everyone. Hopefully, it will last.

The springs and elastic components you produce are destined to different sectors, from lighting to automotive, from textiles to lock manufacturing. Is there an outlet market that looks more promising than others?
They are all going more or less at the same pace, except for the automotive. I must say that, against a backdrop of general decline of the automotive sector, the demand for heavy vehicles is still high and helps raise the average. Unfortunately, those who deal with purchases in the automotive industry very often think only about the short term: without even planning, they block orders one month, only to double them the following, based on which way the wind blows.

What is the price trend of your raw materials?
Our raw material - we are talking about carbon steels, but also alloy steels, stainless steel - is tendentially stable and not affected by large fluctuations. Even in the last period, there has been no hysteria.

Given the situation, did you have to revise your investment plans?
In the last three years, we have invested heavily in business improvements. If there are no major setbacks by the end of November, we can resume our investment plan and allocate new resources, including the purchase of new machinery.

You have recently received the award of Ambassador of Civil Economy 2020 for your business choices and work ethics. When is the next public appointment?
We are carrying out a study on the elastic limits of compression springs in collaboration with the University of Rome. The first tranche of research is complete, and I will present our findings at the annual conference of ANCCEM, slated for November 13 at the historical Villa Baiana in Franciacorta (Lombardy, Italy)*. We will have the final results in May 2021.

The spring maker Co.El. Srl can produce any types of springs and small parts starting from wire and strip, with custom materials and finishes. The company also provides its customers with after-sales advice and assistance.

*Update 09 November 2020: the conference will take place virtually on the Zoom platform.