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The Industrial Weaknesses of the West: From U.S. Artillery to the Piaggio Ape

03.12.2024

Previous newsletter article, week 49:

<-- TNT: Between War and Greenwashing

Beyond European green policies, industries are often subject to imprecise and superficial risk assessments, which can lead to strategic misjudgments—as highlighted by Reuters in a recent article. While Europe faces TNT shortages, NATO’s main member, the United States, appears to lack a sufficient stockpile of 155mm artillery shells—a result of strategic decisions made under the mistaken assumption that such munitions would no longer be needed.
Once this error was acknowledged, corrective measures were initiated. However, it is striking to compare the daily consumption on a potential front line with monthly production: according to current estimates, production will only reach a sufficient level in 2026 (always assuming no new global fronts emerge in the meantime), a level that Russia, by comparison, could expend in just two or three days of war.

It is important to emphasize the relevance of accurate risk analysis and strategic planning. Relying on expert consultancy allows companies to gain a comprehensive view of challenges and avoid short-sighted decisions that may lead to external dependencies or operational inefficiencies. Relocating production for environmental reasons—as in the case of TNT—to countries with less stringent regulations does not solve the global problem and may create dangerous strategic dependencies.

One critical aspect is risk analysis. There is a real danger in being unprepared when production lines are shut down based on the assumption they are “no longer necessary,” without looking beyond the surface data. For example, between 1991 and 2022, the United States conducted a total of 251 military operations but underestimated the need to maintain a robust munitions manufacturing capacity.

It would be a mistake to view TNT production as a niche issue: the regulatory and industrial decisions in this field reflect patterns found across many other production sectors. A current example is the Piaggio Ape, the iconic three-wheeled vehicle produced in Italy since 1948, whose manufacturing at the Pontedera plant has now been discontinued.
The decision was primarily driven by strict European regulations on emissions and safety, which would have required substantial investment to comply with current standards. The company's solution was to relocate production to India, where looser regulations help ensure the product’s competitiveness.

As with the case of TNT, this raises the question of whether European policy and the resulting corporate decisions truly contribute to reducing the global ecological footprint. One could argue that a more flexible European regulatory framework—one that maintains local production while still applying higher standards than those in the relocation countries—might have led to a lower overall environmental impact.

However, it is widely acknowledged that, in light of current challenges, companies must adopt a holistic approach that integrates both environmental and strategic considerations. The implementation of advanced data integration systems, such as the Eliona, platform, enables the centralization and analysis of critical business information—from real-time process monitoring to energy efficiency analytics.

A specialized consultancy that leverages these tools can perform more accurate risk assessments, develop predictive scenarios, and identify potential supply chain vulnerabilities. Only through this data-driven approach, backed by expert insight, can companies make truly informed strategic decisions that balance ecological sustainability with operational resilience.

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