100 anni di energia

The present

At the end of the Sixties: a turning point

Company reorganisation was drastic and quick; and it affected all main aspects of the enterprise, from the technical or production side to matters concerning trade and administration. Uneconomic departments such as foundry, sandblasting and fettling were shut down, while iron casting was diverted to Fonderia Zecchi at Collebeato, 25% of this share parcel having been acquired by Palazzoli. Workforce was reduced by 71 units (to 57 workers and 14 clerks). Equipment was updated by means of massive investment. Machining departments were reorganized, and the store was fitted out in line with modern standards. The San Bartolomeo factory, not far from Rome (belonging to Bombrini-Parodi-Delfino), was bought out, demolished and re-built; some 38,000 sqm of adjacent land was also bought. This was eventually (in 1985) to be the site of a new 10,000 sqm production plant which is still in operation.

This drastic therapy continued all through the following year, with a further 12% reduction of the workforce, and production costs being cut by 16%. Serial products with a higher demand replaced those specialised items that had virtually been produced as craft artefacts. The effects of all these measures soon made themselves felt. Balance sheets began to show a profit again (40 million Italian Liras in 1967; 696 million Italian Liras in 1977); annual turnover started increasing once more (700 million Italian Liras in 1969, corresponding to a 22% increase). The new factory (covering 31,600 sqm in an area of 182,600 sqm) began to function in 1970 and the old premises were sold.
As a result, productivity began to increase and a great many small-scale operations were assigned to third parties. The product range still numbered more than 2000 serial products; the change of focus brought in by the new management was reflected in the standardisation of components and finished goods - to bring them in line with the technical requirements of installers.


Advanced products and innovative materials

Nor was the field of advanced research neglected. In 1971, prototypes of CEE sockets (for plugs) and insulating modular socket casings from polyester resins reinforced with fibre glass were launched (fibreglass was being produced for the first time in Italy). In the same year, a modern data-processing system was put into operation. This encouraged a great thrust forward in terms of plant and equipment modernisation, and contributed to making 1973 and 1974 golden years for Palazzoli as far as production and sales were concerned. In 1977, a new 4,500 sq m building was erected as a store for semi-finished metal parts, and to contain the department for shears, bolts and screws, as well as automatic lathes. Even in the harsh Seventies, Palazzoli managed to achieve
some remarkable results both in terms of finance and assets (thanks to a solid endowment of stock and property). This more than compensated for the drop in industrial income and helped to ensure that company balance sheets showed a profit. (In 1980, profits amounted to 796 million Italian Liras, with negative balances for industrial activity; in 1981, 954 million Italian Liras thanks to the way the new company had become a stock stronghold - in spite of negative industrial balance sheets). On 29th December 1977, company stock was tripled (from 800 million Italian Liras to 2.4 billions): turnover recovered, too: the 10 billion registered in 1978 rose to 11.9 million in 1979 and to over 18 billion Italian Liras in 1981. Material innovation and updating was still being pursued to maintain Palazzoli's reputation for top-quality products. If in 1972 aluminium had replaced cast iron, by 1979 thermosetting plastic materials started to set the pace; insulating materials with superior electric and mechanical features that caused moulds and equipment to be transformed. In 1980, 250 people were working for Palazzoli. The company was exporting its products to the countries of the EEC, to the Middle East, Korea and South America, besides supplying the major Italian engineering and building companies specialising in international tenders and contracts. Its production lines were outputting electrical safety, protected, watertight, low voltage equipment and appliances for application mainly on industrial, naval, civil, agricultural and tertiary systems.

A highly specialized catalogue

Palazzoli reduced the number of products included in its catalogue and limited to those that were of a more specialized nature: 2,200 articles including industrial equipment compliant with safety regulations, CEI and EEC standards, UNEL, UNAV and DIN Standardization tables, MMI, R.I.Na., LLOYD'S REGISTER homologation, and guaranteed by IMQ (the Italian quality mark). The catalogue also offered devices specifically designed to be mounted on systems used on board merchant or military ships, as well as special appliances for agricultural, industrial, naval or civil use.
Further products included a super-specialist range of CAM Series control devices, distribution boxes, cartridge fuses, fuses featuring high rupturing capacity, modular bases, various water-tight lights designed for industrial use (wall or ceiling mounting, hanging), lights for naval use, knobs, alarms, sirens, EEC sockets and plugs with global insulation, TAIS devices made from thermosetting material (suitable for outdoor applications, or in dusty, corrosive, saline atmospheres, or environments with steep temperature changes, in tropical climates etc...).
With such a wide range of products covering such a variety of applications, there probably isn't a factory, works, garden, garage, boat or farm that doesn't have at least one Palazzoli's device installed. Brescia's products were also used on very high profile installations: Line 1 of the Milanese underground was entirely equipped with Palazzoli's devices and appliances, featuring phosphorescent handles to allow operation even in absolute darkness. Palazzoli's commercial operations were extended to a network of 21 representatives (10 of which operated their own stores). They also developed an enviable customer base that included the major Italian industries, the main wholesalers, and the most qualified installers.

A new challenge

In 1995, this electro-technical company from Brescia changed hands - though its name - Palazzoli Spa - remained the same in order to confirm that a tradition of proven product excellence was not about to be broken. Giacinto Becchetti, who for 28 years had been at the head of a company with a share parcel divided among 28 shareholders ("mainly women" - as he complained humorously when he revealed his intention to leave - "who have no pretensions to being industrialists") sold both the activity and the factory to a group of Lombard industrialists who had joined up under the company name of Centro Sviluppo Srl (a limited company based in Brescia, with 9.7 billion stock capital).   
On 21st April, the assembly of shareholders of Centro Sviluppo met in the office of Notary Public Bossoni and appointed Luigi Moretti Company Chairman. The company became a joint stock company on 12th April 1995. On 31st October 1995, the new Palazzoli Spa officially began to operate, with the following activities still included in the company's statement of purpose: production of, and trade in, electro-mechanical appliances and devices; electrical and electronic equipment; and machining of details on behalf of third parties. The Board of Directors included: Luigi Moretti, Chairman and managing director; Marco Palvarini, Vice-Chairman; Ettore Gnutti. The board of auditors was composed of Eugenio Ballerio, Chairman; Enrico Broli and Giovanni Consoli, auditors. During its almost one hundred years of history, Palazzoli has gone through times of growth; times of acknowledged maturity; and also times when the company has been in the throes of major re-structuring. The period that began at the end of 1995 was a re
organisational phase that affected practically all branches of the company's activity. The direction the company intended to go in was confirmed and backed up by new resources in the technical-engineering, commercial and production areas. Trade activity, with a catalogue including more than 3000 highly specialist items of proven quality, was reorganized and soon registered two consecutive increases in turnover: 18% in 1995 and 11% in 1996. In the technical-engineering area, values and organizational procedures already in existence were given a more rigorous framework and the high quality of this system was soon acknowledged when it received EN ISO 9001 international certification (in only six months after being put into operation). In terms of its technical history, Palazzoli started out from a solid position of leadership in the field and specialized experience acquired through supplying industry and the Navy, to develop (and extend) a range of products specifically designed for the tertiary sector. These had been eagerly awaited by designers and major qualified installers - long appreciative of what Palazzoli had to offer.

From Milan's exhibition complex to Antarctica - with ISO 9001

And so once again the company has become a prestigious supplier. When the Milan exhibition complex was enlarged, Palazzoli products from the new TER series were chosen. Palazzoli products from the TAIS Series were used for the electricity system on board the biggest cruise-ship in the world (the Carnival Destiny, built at the Fincantieri shipyards). Enea's Italian base in Antarctica chose Palazzoli's watertight appliances and devices as those best suited to withstand temperature extremes. For the enormous dredging plant that Israel is constructing in the Dead-Sea (under the name of Dead Sea Works), it was Palazzoli's equipment that was chosen as a result of an international tender.
 A complete series of products is output from the Palazzoli works every day - products that further confirm the company's reputation for exceptional quality and reliability. Today Palazzoli manufactures products belonging to the following series: CEE, TER, PT60, TAIS (switches), CAM, METALLICA (industrial lighting), and NAVALE - a range of products able to provide what is needed in the most critical operating conditions and offering safety, reliability and durability. This is the outcome of the latest stage in the life of Palazzoli Spa - a company now characterized by a more dynamic and nimble management style. This focusses on its industrial business core, concentrating strategic production activities in the company itself and outsourcing those that are less profitable. Other factors of its success include: production reorganisation, personnel adjustment and the abandonment of what had long been in force - the concept of a self-financing company, generating its profits more through the accumulation of reserves rather than by means of its production lines. In brief, we have gone back to being and acting as industrialists, rediscovering entrepreneurial delights: a global challenge in a sector where multinational giants rule. But we are sure that our little Palazzoli - precisely because its size makes it nimble and also because of our impeccable background of consolidated know-how, combined with a highly motivated management - has the winning cards in its hand.

The industry discovers the electrical energy

Within the province of Brescia, the first mill lighting installations with self-contained generators (operating by means of direct current) were first seen in 1883 at Palazzolo, Chiari and Villanuova. Società Telefonica Bresciana, one of the first companies to be established in this sector (in 1884) was considered a reference point for electrical problems of this sort and it was to this company, with its attached shop, that the industrialists of Brescia turned for help. In this period, the armament industry, cotton trade and drawing mills were well established in the area and, as a result, the need was growing for a source of energy that would be both clean and easy-to-use.
 
The first alternating current installation we know about in the area around Brescia was erected at Lonato in 1888 for public lighting purposes in this small town. (Gas lighting continued to be used in the city but this method was economically impractical for small villages and towns.) However, in 1887, Brescia, too, began to consider the possibility of using electric energy for public lighting. An opportunity for this was provided by the approaching expiration of the public gas lighting contract with the Augusta company. Though this contract was, in fact, renewed for other 25 years, the township reserved the right to experiment with electric lighting as well.

Soon after that, availing itself of this right, the township announced a tender for a public and private electric lighting system. The contract was won by the "Società per l'utilizzazione delle forze idrauliche per mezzo dell'elettricità" (Company for the Electric Exploitation of Hydraulic Forces). The charge was established at 7 cents per hW, which was to be raised to 22 cents - including tax - in 1935. The winning project planned direct current transmission from the Chiese river, near Calvagese, to the city. The power plant included 7 dynamo turbines (100 HP each - 3000 V). Its seven pairs of cables were planned to reach the area around Brescia's fish farming centre - from where circuits branched off.

The Past

From Società Elettrotecnica Bresciana to Palazzoli

In 1912 there was an effective quality leap, when Federico Palazzoli & C. took over Società Elettrotecnica Bresciana, founded in 1904. The new company deliberately neglected those so-called 'inferior' branches, such as plant installation and the sale of electrical material, in order to concentrate entirely on production - or, in other words, on industrial activity.
 
The first items to be produced were in the field of the special fitments and details required for the energy distribution lines proceeding from a central power plant to user facilities. Initially, electrical appliances in wide general use - such as irons or electric heaters - were also manufactured during wartime, when supplies were difficult to obtain.

The outbreak of war in 1914 was to be the turning-point as far as Palazzoli's activity was concerned. As a result of the hostilities, the supply of German products was blocked and, as a result, new opportunities opened up for this Brescia company. It was more than ready to profit by its know-how to defeat its Italian competitors. During the first world war, Palazzoli embarked on the production of a series of electrical appliances for use on board ship. These, until then, had been almost exclusively supplied by German manufacturers.

In order to be better able to satisfy the Royal Navy's new requirements, Federico Palazzoli made the decision to finally abandon any plant instalment activity. He did, however, maintain the company's commercial base with the idea that, once the war was over, this activity might once again offer a back-up for industry.

For this reason, a close relationship was established with shipyard technicians in La Spezia, Venice, Naples and Taranto while, at the same time, the company at home was at great pains to satisfy the demand for new products in spite of all the wartime difficulties. (Company personnel was exempt from call-up in order to allow production to be continued). In spite of having to cope with a shortage of funds, as well as of equipment and space, the Palazzoli company continued to grow.

Although collaboration with the Navy offered an opportunity for the company to acquire important technical experience, the results in terms of profitability were not as remarkable. Extremely diversified production required to be supplied only in small quantities clearly couldn't guarantee the same remuneration available, for example, to bullet and fuse suppliers. In particular, the company suffered from insufficient financial resources after shareholders had refused to increase the company's capital in 1913. Hence Palazzoli's decision at this point to buy up shares belonging to stockholders who were not family members.

A good moment for this came about in the situation of general panic at the end of the war, when the problem of production reconversion had to be confronted. The existing company was wound up and a private company - Federico Palazzoli & C. - was established in its place. Its founder invested all his personal resources, as well as those of some of his relatives, in the enterprise. The company was thereby strengthened and its product range extended.

Around the world - with the Navy

Once peace was established, Federico Palazzoli & C. went back to the development of low voltage electrical appliances for industrial use - though also, at the same time, maintaining governmental supply contracts. In collaboration with the Navy, the company manufactured a complete and up-to-date set of devices for direct current (220 V) systems on board ship that immediately obtained the prestigious approval of the Navy and shipyard technicians. In the meantime, Federico Palazzoli continued to take advantage of any opportunity to extend and deepen his technical competence. As the instigator of Brescia's electro-technical industry, and a member of the Italian Electro-technical Association since 1908, he was an active participant in the affairs of the Association, visiting a number of major hydroelectric and industrial plants.
 
He also went to the Leipzig Trade Exhibition every year in order to keep himself au fait with the most advanced electrical devices and machinery.In 1931, he visited some of the main industrial complexes in North America - with the objective of being able to continuously develop and up-date his products. He started to pay more and more attention to material and equipment tests - which resulted in general quality improvement and the reduction of costs.
By 1923, 16 clerks and 80 workers were employed - distributed between the works and storehouses in via Solferino 45, Palazzo Pisa, and the factory at No. 4 via Cremona (production had been moved there in 1915). With an electricity supply of 20 Hp, electrical devices were manufactured - along with lever commutators and switches; low and medium voltage switch blocks and dischargers; and fuses. Palazzo Pisa - we are told by Giovanni Bertè, one of the sons of Palazzoli 's caretaker (he was born in via Solferino like his two brothers) - was the company's official head office. "So, when my mother - who was normally based at the works in via Cremona - was near her time, she was invited to move to Palazzo Pisa and stay at Mr Federico's, who wanted us children to be born in a more suitable environment".

The main problems the company had to face at this time were caused by the lack of adequate suppliers and a qualified workforce. This situation was a powerful motivation for the setting-up of an in-house training scheme and inspired a passionate interest in Palazzoli in terms of professional training issues. This interest, along with a deep and active involvement in the town's social problems, was to become one of his main concerns.
He had always held various kinds of public office since 1906, particularly serving on the councils of professional training establishments, making available both his financial resources and his organizational skills.

But as time went on, his public life intensified with every year that passed. On 18th July 1919, F. Palazzoli was spokesman for the Brescia Commercial and Industrial Association on the occasion of a convention promoted by the League of Civil Protection against General Strikes. On 24th March 1920, he was elected vice-chairman of the above industrial association (and was to remain as such until 1922, when he became its chairman). On 3rd November 1920, he was elected as a member - a moderate - of the Brescia Town Council, obtaining 9,728 votes (and he was to remain in this position for the four year period). In 1922, he was appointed "Cavaliere ufficiale" (one of the Italian orders of merit) having been proposed by the Minister of Industry and Trade (he had already been appointed "Cavaliere" in 1904, proposed by the Minister of Home Affairs). Nor did he neglect sports: he was President of Brescia's Football Club from 1920 to 1923.

The factory in via Tommaseo


In 1925, the company moved into the premises in via Niccolò Tommaseo, Porta Trento - a building of 2,950 square metres erected in an area of 12,000 square metres and formerly used for the production of knives and matches. It was a place - as F. Palazzoli himself said - a long way from the town, and completely surrounded by meadows. " When we arrived there" - Enrico Zovetti, one of Palazzoli's pensioners, tells us - "we found an enormous pile of matches all packed into the store. We set them on fire in a boiler that discharged its smoke through a chimney standing in the middle of the court".
 
In addition to machining, the company began to operate foundries. To begin with it dealt only with copper and aluminium alloys. However, later it began to use cast iron to produce thin-walled castings thus enabling lower tolerances than those normally provided by third party foundries. The original project involved fixing sweeps onto aluminium plates having telescopic pins; these were able to firmly maintain their position, preventing any possible shifting. Sand casting was soon integrated with chill casting in the series production process of brass and aluminium alloy parts. Since 1936 these type of alloys were melted through die-casting, using a technique that was both novel at the time and reknowned for its ability to provide a high level of precision.

In 1930 the premises in via Tommaseo were expanded. A new factory was built with a basement for the storage of finished products. In 1932, a department for moulding of thermosetting plastic was established. This material was extremely suitable for the production of insulating material requiring stable characteristics, reduced dimensions, close tolerances and complex shapes. Bakelite was able to satisfy these requirements far better than wood, slate, mica, and porcelain, the latter being quite brittle and subject to variable shrinkage. In the production complex in via Tommaseo almost all production processes (except those for porcelains and glasses) could be upgraded to using advanced methods and technologies. Brush painting was replaced with spray painting with conveyor chains being installed to convey details into drying ovens. Vats with primitive electrodes were replaced by tank lines posessing rotating barrels capable of following pre-defined patterns. Palazzoli was also at the forefront of the industry when providing for their workforce, offering canteens, locker rooms with showers and cabinets, a sick-room and a bar.

These huge investments required sacrifices and this contributed to a lean period for the company that was to last three years. But as the company was about to recover, a new and interesting opportunity emerged. The company owner had to choose between a satisfying but routine operation and the challenge of a new risky venture. At the end of the Twenties, the Navy decided to forgo restoring the old war surpluses and fit its new units with modern equipment featuring higher operating voltages (440 V). This was in response to the possible future requirements for energy services on board modern ships. As competition was unable to meet these requirements, this task was taken over by Palazzoli, who therefore had to reduce supplies to its industrial customers.

A modern self-sufficient factory
To meet commitments to the Navy required an enormous effort on the part of the company. The tooling department was expanded further and a substantial investment was made in modern machinery. Foundries also underwent expansion and were upgraded to allow the use of light alloys. New departments were created in order to ensure the company was completely self-sufficient. These included departments for moulding of phenolic resins, testing, and a chemical laboratory. In 1929 the ministry of Defence approved Palazzoli's appliance prototypes and placed an order for over 5 million Italian Lire.

Palazzoli had become a mature and self-sufficient company, capable of operating on a large scale. The time had therefore come to keep an eye on international markets too. For this reason, as well as considerations of a political nature, Palazzoli was present at the third Libyan (once Tripolitania) Trade fair in 1929. Close collaboration with the Navy earned Federico Palazzoli the title of "Commendatore della Corona d'Italia" (another much coveted Italian order of merit) proposed by the Minister of the Navy himself.

However, the company's focus of interest naturally remained that of the domestic market. In 1933, Palazzoli had a stand at the Milan Trade fair. The local newspaper "Il popolo di Brescia" reported that event in the following terms: "This firm from Brescia is holding out and preparing for the future with daring innovations. In Milan, it exhibited equipment for 20,000 V plants, and a catalogue - consisting of 350 pages - offering a large number of items of modern machinery". And, indeed, it was a fact that this catalogue included an extremely wide choice of products designed for industrial applications and also provided a series of interesting illustrations which gave readers an idea of the complex company organization.

At this point in time Palazzoli had several facilities, technologies and capabilities at its disposal. These included a chemical and metal test laboratory; a test and inspection department; metal cleaning, painting, marble and slate machining shops; galvanic baths, shop and sales stores, drilling and threading machines, turnery, a light assembly bay, shears, a tooling shop, a foundry for sand casting of light alloys, brass and cast iron; a chill casting department; copper, a brass and bronze pressing department, and a shop for moulding of insulating materials.

As can be seen, Palazzoli was a small universe of new and original technologies - behind which could be detected a production philosophy aiming for complete self-sufficiency. This latter state of affairs, though making it possible for a wide variety of different processes and machining technologies to be carried out - even, in some cases, using old-fashioned craftsman techniques - contained the seeds of what was to manifest itself as a general weakening of industry over the next few years. At that time, there were 250 employees at the works in Via Tommaseo - as we are informed by "Popolo di Brescia" (reporting on the visit of the prefect of police, Mr Salerno, to the company's premises).

Conquering international markets
Over the next few years, Palazzoli's main focus of interest continued to be directed towards supplying the needful in two main areas: the Navy and industry. In fact, in 1934, in order to concentrate its resources and energies on industrial production, and thus be able to meet private orders as well as governmental requirements, the Palazzoli company shut down its commercial activity.
This soon led to the development of new advanced products that would not only meet the requirements of the Italian market, but also international needs and standards. The company's founder had two very able assistants: Paolo Palazzoli, Director of the Engineering Department and Carlo Lucini, an engineer in charge of Admininstration (both nephews).
When the Italian Lira at last found itself in alignment with the other European currencies, new possibilities emerged for expansion on an international scale. The works were consequently enlarged and, by 1937, covered an area of 4,200 sqm, reaching 6,000 sqm in 1939 (with 400 workers and 45 clerks employed). In the same year, Federico Palazzoli - whose living quarters had until then also been a part of the Head Office building - moved to his new villa in via Valsorda.

The main products manufactured at the plant in via Tommaseo included: water-tight or protected electrical appliances for use in industrial or naval low voltage systems; protection and control devices for motorized machinery; water-tight lights; remote switches, overload cutouts, and remote reversers; switches, commutators, inverters and star-delta starters with controller-based contacts; cast iron, bronze and light alloy castings; hot moulding of copper or bronze details; production of bakelite details.

On 29th December 1950, Palazzoli became a joint-stock company - Federico Palazzoli & C. Spa - with a share capital of 50 million Liras, 300 employees and a product-range of at least 2000 items. During the first year, this new joint-stock company's cash-flow problems were solved through bond lending. Along with market rally, balance-sheet consolidation followed: profits grew from 8 million Italian Liras in 1951 to 41 million in 1963. Company turnover reached 630 million in 1958 and 658 million one year later. Capital stock was raised twice: first, from 50 to 100 million Liras on 30th December 1957, and then to 150 million on 8th November 1962.

From 1904 to today

1904: a couple of workbenches and a drill set up in a small shop in Via San Martino, and a financial endowment of 50 thousand Italian Liras. This is how Palazzoli - Brescia's oldest electro-technical company - began. Something of a harsh beginning, it has to be said - capital in limited supply, no qualified workforce to call on in the area and the absence of subsidiary industries. It's only from 1915 onwards, when the company moved to Via Cremona (just beyond the Brescia-Venice railway line) that we can talk about a real industry, though at that time it was still on a small scale. Apart from assembly and mounting, only lathing, milling, drilling and treading of sheared sheet iron and mechanical parts were being carried out on site (with castings, insulating material and glass supplied by third parties).

Palazzoli was born practically at the same time as electricity started to be used in Brescia, and at the outset of Italian industrialization. In other words, it was that moment when a tangle of lineshafts - typical of late 19th century shops - gave way to conveyor belts and ducts or raceways of all sorts.
 
During the first great period of industrial expansion at the beginning of the 20th century, this Lombardy province had no major electro-mechanical company able to supply electrical equipment for industrial plant use. This need was being met by foreign companies - until the void was finally filled by Società Elettrotecnica Bresciana, founded by Federico Palazzoli with the help of his partner, Giacomo Lucini.

The municipality owned company at the crucial test

In 1908 the city lighting contract expired. Brescia's townspeople had already expressed themselves openly in favour (through a city referendum) as clearly in favour of the municipalization of tramways. So the way was now open. The Calvagese power plant, with its transmission and distribution lines, was taken over by the municipality, thus setting up a real city-owned enterprise. SEB continued to expand throughout the province, also erecting Vobarno's 30,000 Hp plant.
 
By the end of the first decade of the twentieth century, the Brescia district was able to call on about 123,000 DIN Hp - against the 403,000 DIN Hp being generated in Lombardy and 1,620,000 DIN Hp in Italy as a whole. All this with a population of over 610,000 inhabitants (51,700 of which were employed by 4,189 companies), against Lombardy's total population of nearly 5,000,000 inhabitants (with 657,000 people working for 41,027 companies) or Italy's total population of 5,8 billion inhabitants (2,3 billion employed by 43,926 companies).

The largest amount of energy was available in Valle Camonica: 75,899 DIN Hp; 452 companies and 4,092 people employed. The Brescia district (including Valtrompia and Lumezzane) came next with its 25,273 DIN Hp, 2,160 enterprises and 27,720 people employed. Then the area around Salò (15,715 DIN Hp, 603 companies e 7.221 people employed); the Chiari district - including Palazzolo - with its 3,894 DIN Hp, 554 enterprises and 9.479 people employed; and finally the Verolanuova district (1,848 DIN Hp, 420 companies, 3,188 people employed).

Social concern

A truly valuable presence in society

The 50's were the most fruitful years for the company at any time since the great boom in the thirties of commissions from the Navy. And it was in this period that Federico Palazzoli intensified his social activity. Already a representative of the Provincial Administration on the board of governors of the Municipal Industrial Institute "Moretto"(in fact a technical secondary school), from 1946 to 1966 he represented the Ministry of Education at the Technical Industrial secondary school - which had in the meantime become a state school. In 1954, in a gesture of considerable generosity, he donated to the provincial Administration some building land of 21,500 sqm for the construction of new premises for Benedetto Castelli secondary school.

Once the school building had been completed, he arranged for the electro-technical laboratory to be fitted out - a laboratory (worth 30 million Italian Liras at that time and named after him) that was to serve both the school and Brescia's industrial sector. Later he also presented the school with an artesian well. Then, in collaboration with the town's Mayor, Bruno Boni (they were to champion each other in many ventures), he gave his whole-hearted support to the idea of starting up evening classes - realising this would be of benefit not only to workers but also to the companies of Brescia.

Among a large number of other initiatives, he also promoted the setting up of a (non-profit-making) Foundation for the support of technical and professional education, based at AIB. Its goal was to implement and further any activities that could develop this type of education and to provide incentives - in the form of special prizes - for the best teachers and pupils. This foundation has been in operation since 1960, with a fund of 5 million Liras and the residuary right of ownership of 60 hectares of land, between the villages of Orzinuovi and Pompiano, donated by F. Palazzoli himself (and worth 110 million Liras). The management of this agricultural estate was given to the family of Domenico Bianchi, someone greatly admired and respected by F. Palazzoli - and who was to become the president of UPA, the Brescia Provincial Union of Farmers. The property is still managed by a UPA president, Franco Bettoni.

In addition - in July 1965 - Palazzoli presented the township of Brescia with the Villa Palazzoli in via Valsorda, including all its annexes and the adjacent "Ronco" - with the proviso that these should be used as a hostel for teachers and government employees. He made a donation of 25 million, in 1966, to the Civil Hospital of Brescia, in memory of his beloved wife, Elvira Palazzoli Zappa; and, two years later, a further donation of 5,000 sqm of land - in the area around Mompiano (via Ambaraga) - for the construction of the Spastic Centre that bears his name.

Supplementary social welfare funds - ahead of times
But Palazzoli's sense of social concern was also directed towards the needs of his employees - both inside and outside the factory. Since the early Sixties, the firm had provided a canteen, health care facilities and a welfare department. In addition, in effect since the 1950's, accommodation was offered by the company chairman to 30 workers' families at a reduced rent. And last but not least, The Pensioners' Foundation had been established, in 1956, with an initial fund of 4 million Italian Liras contributed by Palazzoli himself. This fund was augmented yearly by further contributions by employees. The aim of this institution was to improve the level of the retirement pensions of Palazzoli personnel and to make sure that other forms of provision were in place. This fund was closed by Giacinto Becchetti in the seventies - appropriate amounts being divided among the workers - since it was no longer considered a suitable arrangement for the times.

Demanding and severe on the one hand, yet affable and open-hearted on the other, the patriarch of Brescia's electro-technical industry loved to spend time in the various departments of his factory and establish first-hand relationships with his workers. As some of the older people have told us, you would know he was particularly ready to talk when he'd come to the factory dressed in brown, and with a Tuscan cigar in his mouth. Another example of his kindness and generosity - among a great many that could be cited - is that when the time came round for the "Mille Miglia" (the traditional 1000-mile car race) - as Bruno Boni recalls - F. Palazzoli was the first to answer the mayor's appeals and those of Renzo Castagneto. He would give extremely generously - thereby encouraging other industrialists to do the same.

And this old chevalier of the workplace did not fail to provide tangible post-mortem acknowledgement of his closest collaborators. As Luciano Treccani tells us (an engineer who graduated from the school Palazzoli devoted so much love and attention to, and who spent the thirty-five years of his working life in the Palazzoli electro-technical company), those in charge of the various departments received a testamentary bequest of 2 million Italian Liras each - quite a considerable sum of money at that time.

But the generosity of this industrialist was particularly noticeable in the area of education - and received a great deal of official acknowledgement. In 1958, F. Palazzoli was awarded the "diploma di prima classe" (a first-class diploma) and a gold medal by decree of the President of the Republic - Giovanni Gronchi (proposed by the Ministry of Education). On 2nd September 1961, he celebrated his 81st birthday - and the fact that he had been awarded one of the most prestigious Italian orders of merit ("Grande Ufficiale al merito della Repubblica") - by offering a dinner to all of his employees at the Gardone Riviera Grand Hotel. In 1963, he was awarded a gold medal, and the special Diploma given for outstanding service in the field of economics, by the Brescia Chamber of Commerce..

On 2nd June 1964, he was appointed "Cavaliere del lavoro" by decree of the President of the Republic - Antonio Segni (an order of merit recognising exceptional service in the workplace) and on 28th May 1966, he was awarded a bronze medal for civic excellence on behalf of the President of the Republic - for promoting and developing so many social, charitable and welfare activities in Brescia. The ceremony was held in the Salone Vanvitelliano in the presence of the Prime Minister, Aldo Moro.


Between a craftsman's world and industrial logic
Palazzoli's steady growth was suddenly interrupted in 1964 and a difficult three-year period began -marked by deficit balance sheets and reductions in employment levels (in 1965 the number of employees dropped from 392 to 342). The factory's inadequate dimensions, an excessive expansion of specialist production lines (creating a large number of craft islands within the factory) and a certain sparing attitude towards productive investment were provoking a general market crisis - intensified because of the presence of new competition in the form of recently emerging small and medium-sized companies.

The distinguishing characteristics of this industry - weakened by excessive branching in terms of production, pride that would never turn a job down even if, as in fact happened, the result was a large number of products tailored to the specific requirements of one-off customers - were not slow in making things worse.
At the beginning of 1967, Federico Palazzoli - he who had been company chairman and managing director for so long - relinquished his position as head of the company and retired into private life, though this was also for reasons to do with his advanced age and the critical state of his health.


Bruno Boni (Brescia's Mayor) recalls this extraordinary man's farewell to his company (he was getting on for ninety) in the following words: "One day when I was at his place (I used to visit him practically every day), he confessed that he felt the years had taken their toll - that he was tired - and that he was anxious to leave the company in good hands. He had thought of me as his successor, but I refused with great firmness. I told him that if he gave me even a single share in the Palazzoli company, I would never visit him again". This refusal was to become common knowledge (on 20th November 1980 to be precise) when an article in "L'Unità" - written by Fortebraccio - reported this fact, heaping praises on the head of the Christian Democrat administrator.

But though he refused a remarkable bequest, Brescia's mayor did not refuse to help Palazzoli find a solution.
The answer was to be found- as Boni remembers - in Adamo Pasotti, soon joined by Umberto Gnutti (who was leaving the Eredi company). This industrialist from Lumezzane brought with him Giacinto Becchetti, a colleague whose work he knew and respected from their time together in the company from Valgobba and an agreement was signed, for the sum of 250 million Italian Liras, under the tutelary name of Mayor Boni.
Thus the running of the company was taken over by a group of friends (who were very well-known in Brescia's industrial circles). They split the share parcel between them, taking on the company majority in varying proportions - and committing themselves to its re-launch. The Lanfranchi, Lucini, Palazzoli and Massardi families were among the remaining shareholders.

On 24th January 1967, Umberto Gnutti (a 'cavaliere del lavoro') was appointed company chairman, while Federico Palazzoli, who was to die on 13th January 1969 at the age of 87, kept the honorary title of Company Director. Giacinto Becchetti (who was also General Manager), Giuseppe and Adamo Pasotti were co-opted on to the board of directors. On 26th April capital stock was raised to 300 million Italian Liras (500 millions in November 1968, and 800 millions in 1970).