Trade liberalisation, a strong dollar and weak consumer demand are described as creating a perfect storm for many local producers. The article cites the experiences of companies such as Marmicoc, Jit Pants, Franco Valente and Rasti. These firms have turned to diversification, directing investment toward new product lines or markets. They have also pursued specialization to improve competitiveness. The combination of diversification, investment and specialization is presented as a way to withstand the adverse environment. The piece suggests that such strategies can help industrial SMEs continue to compete.