INTERVIEW/ Technology providers take on increasingly central role in defense industry

From a small venture born from the initiative of a few young graduates to a point of reference for the digital and sustainable transition of companies: this is the story of Mare Group, a company headquartered in Pomigliano d’Arco, founded in 2001 by a group of researchers and engineering graduates from the Federico II University of Naples.
Its first activity area was automotive: the company offered simulations and engineering services to major automakers like Stellantis. In 2015, from a simple service provider, the company took a significant step into the aerospace sector, supporting major national and European players in developing new programs. In subsequent years, growth continued along a strategy of acquiring twelve companies, again in the engineering field, with a strong digital and innovative component. This has allowed new competencies in software engineering and emerging technologies such as extended reality, artificial intelligence, and big data analysis, in addition to the historical industrial engineering business—the result is double-digit annual growth in both sales and profit.
In May 2024, Mare Group was listed on Euronext Growth Milan, securing an additional capital increase in December of the same year to support further expansion, now oriented primarily toward the aerospace and defense sectors.
We discussed these aspects with the company’s Managing Director, Luigi di Palma.

Eunews: Dr. Di Palma, in what other areas do you specialize?

Luigi di Palma: In addition to a well-established activity in the industrial sector, Mare Group also operates in the field of digital engineering in the civil sector and has an approach based on our technology platforms: tools that enable faster development of applications to optimize processes, train personnel, and improve the defense and security of buildings, companies, and territories.

One example is land monitoring applications, which can be integrated with aerial platforms, such as drones or piloted aircraft, and satellites. We also work on predictive maintenance systems for critical infrastructure such as railways and roads. Our Sypla platform, for example, monitors the conditions of railway tracks and predicts maintenance needs through sensors mounted on passenger trains instead of the infrastructure, reducing costs and improving service. In different verticals, the same platform is applied to predictive building maintenance or energy consumption optimization in increasingly broad fields.

Our XR Line platform, dedicated to virtual training, has also expanded over time to new fields of application and integrated with monitoring technologies and GIS systems.

E: What role can European industry play in the new Common Defense Plan?

L.D.P.:  From our privileged vantage point, we note how many companies are rapidly moving toward innovation in the defense sector, driven by the need to digitize processes, increase productivity, and develop new products. The domestic and international industry is fundamental in developing naval, land, and air assets. This is why there is a growing need for technology providers such as Mare Group, which develops technological innovation with large companies and then democratizes it toward SMEs, providing reliable tools at affordable costs.

E: Your activities require specialized skills. How important is it to invest in human resources? Do you find it challenging to find qualified figures in Italy? Have you initiated training courses?

L.D.P.: The main issue is skills and competitive salaries. Compared to countries like Germany and France, Italy has tremendous talent but fails to retain it because of less attractive salaries. While offering competitive entry-level contracts, we also suffer from this dynamic. The result is a difficulty in growing the workforce, which we try to compensate for with technological enhancement and growth by external lines.

E: The issue of raw materials is key today. What is your procurement strategy? Have you encountered any difficulties related to the economic and geopolitical situation?

L.D.P.: Difficulties arise not only from the Russian-Ukrainian conflict but also from earlier events, such as the pandemic. Since then, costs of materials such as aluminum, steel, and titanium have increased significantly. This impacted some of our customers, but not directly on our company, which has no particular sensitivity in this area. Governments, however, can no longer ignore the market environment and its economic fallout.

E: Do you think the public’s perception of the security sector has changed? Is there more awareness?
L.D.P.: Absolutely. Until a few months ago, the defense topic seemed less relevant, if not even uncomfortable. Today, the attitude has changed. It has become clear that operating in the defense sector means protecting citizens and territory, and many civilian applications (Dual Use) benefit everyone. In short, there is greater awareness that security is a positive, indispensable value for the collective well-being and that we need to work on it strategically, focusing applications on greater technological autonomy for Italy and Europe.