A recent report by the Center for Studies of the Argentine Industrial Union (CEU) for the Association of Industrialists of the Province of Buenos Aires (ADIBA) has highlighted a significant decline in industrial activity within the province during the first half of the year. This report, which surveyed over 1,200 companies, reveals a continuing downturn in production levels, domestic sales, exports, and employment.
The Industrial Performance Monitor (MDI) recorded an index of 35.5, indicating contraction for the eighth consecutive month, with a year-on-year decline of 4.9 percentage points.
This situation is troubling for many, leading to increased concern among businesses. According to Camilo Alberto Kahale, president of FEBA, the alarming statistics reflect a stagnant industrial sector since the beginning of the year. In March alone, there was a year-on-year decrease of 20.1%, with a 4.9% decline compared to the previous month. All sectors faced drops, particularly in common metals, non-metallic minerals, and apparel, leather, and footwear.
Kahale emphasized that small and medium-sized enterprises (SMEs) in Buenos Aires are particularly hard-hit. He noted that while efforts are ongoing to prevent further business closures, the worsening economic crisis is making it increasingly difficult. The current national government has yet to present a concrete plan for economic stabilization and industrial revitalization, contributing to the crisis.
The metallurgy sector saw a decline of more than 17% in June, indicating levels not seen since the pandemic. Additionally, 58% of companies in Buenos Aires reported decreases in production levels, contrasting with only 11% that experienced growth. This pattern was mirrored in sales, with 66% of businesses noting drops in domestic sales and 44% in exports.
The automotive industry further illustrates the dire state of the industrial sector. There was a 5.9% year-on-year decrease in vehicle registrations, primarily due to falling sales of national cars. Motorcycle registrations also dropped by 4.2%, and the registration of machinery fell by 32.3%.
Kahale also pointed out that this overall scenario is having a profound impact on employment. Traditionally, SMEs have aimed to safeguard their workforces, but the current economic paralysis is affecting industrial productivity to an alarming degree. He claimed that the situation has deteriorated even more than during the pandemic.
In March, the province of Buenos Aires experienced its seventh consecutive monthly drop in private sector employment, totaling a loss of 41,000 recorded jobs since August of the previous year, a decrease of 2.1%. Moreover, the industrial sector saw its first year-on-year employment decline after several years of growth, marking the first such drop since October 2020. ADIBA’s Zurzolo expressed concern that unless authorities take action to support national industry, the situation is likely to worsen further.
Source: https://www.perfil.com/noticias/economia/las-industrias-pymes-bonaerenses-alertan-sobre-una-situacion-de-caida-libre-estamos-peor-que-en-la-pandemia.phtml
