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How did Milan’s manufacturing economy change into a service-based economy?
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Milan
Shoppers in the Galleria Vittorio Emanuele II, Milan.
Milan’s transition from a manufacturing-heavy economy to a service-based "postindustrial" powerhouse occurred primarily from the late 1970s onward. During the first half of the 20th century, the city’s economy was dominated by mechanical industries, including automobile and appliance production, which employed nearly half the workforce.12
The shift was driven by several key factors:
- Industrial Relocation: As traditional manufacturing industries closed or relocated to nonurban or peripheral areas, the city center pivoted toward lucrative service sectors.21
- Rise of Specialized Services: Milan successfully cultivated prominence in advertising, retail trade, and finance, supported by the efficiency of local banks and the stock market.1
- Fashion and Design: The city became a global hub for fashion and design, with high-end salons and businesses concentrating in the city center.21
- Media and Technology: The growth of private television, publishing, and high-technology industries—such as software production and telecommunications—further diversified the economy.1
By the 1980s, political and business leaders actively embraced this postindustrial model, cementing Milan's status as a world capital of business services and media.13