Monday , September 20 2021

SMEs in industrial production fell by 5% in October and accumulated six months at a low level

The SME productivity product returns to a record decline for the sixth consecutive month and increased by 1.9% in the first ten months of the year compared to the same period of 2017.

In October, the annual decline reached 5%, while compared to September it increased by 5.6%, which is explained by the seasonal question and which did not prevent the progress from the industrial recession.

According to the Industrial Small and Medium Enterprises (IPIP) Index, conducted annually by the Argentine Confederation of the Medium Business (CAME), only two of the eleven surveyed branches showed positive behavior compared to the year.

Thanks to the improvement of competitiveness caused by the strong devaluation of recent months, the food industry and non-metal minerals increased by 0.1% and 1.6%, respectively, at the cost of increasing exports.

On the contrary, the most significant are the decreases in Footwear and Leather Products (-15%), "Rubber and Plastic Products" (-10.8%), "Wooden Products and Furniture" (-10.4%), "Paper , cardboard, edition and printing "(-8.5%) and" Metal products, machinery and equipment "(-7.3%).

As a result, 74% think that their company's status is regular, bad or critical, and only 18.7% expect an increase in the next three months. In return, the utilization of installed capacity remained at 58.6%, which explains why seven of the ten industries have no new planned investments.

"The trend of production does not seem to come back and continue at least until the middle of next year. The only companies that are the strongest are those who export and benefit from the devaluation and the new dollar, said Pablo Boszano, Executive Director of the Information Chamber, electronic and communications industries of the Center of Argentina (CIIECCA).

Among the most important problems cited by CAME businessmen are the lack of market liquidity, the low quality of the payment chain, excessive interest rates and difficulties in returning liabilities.

"Suppliers want to charge after 30 days and customers pay to 120. This causes companies in the sector to borrow at unusual prices," said Daniel Garcia, president of the Argentine Chamber of Light Effect Efficiency Manufacturers and Domtica (CAFLED).

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