Wednesday , April 21 2021

Industrial production of SMEs fell 5% in October and only works with 58% of installed capacity

Through a survey conducted by CAME, it was announced that the PME industry fell for the sixth consecutive month and the industry is working with only 58.6% of its installed capacity.. In this picture, 74% believe that the situation of their company is regular, bad or critical. Only 18.7% expect a recovery in the next three months.

"The lack of liquidity in the market, the poor quality of the payment chain, excessive interest rates and the difficulty of paying liabilities complicate the SME business and are forcing many companies to shrink or rethink their continuity," they said. .

With an internal market that does not recover, industrial SME production fell 5% in October compared to the same month last year. It is the sixth consecutive month in which the industry falls.

In comparison with September, there was an increase of 5.6%, basically explained by the seasonality of the month. For the 10 months of the year accumulated a drop of 1.9% in relation to the same period of 2017.

The data come from the CAME Monthly Survey of Industry carried out among 300 SME industries in the country. The Industrial Production Index (IPIP) recorded a value of 79.8 points in October.

The most pronounced losses were "Footwear and leather goods" (-15%), "Rubber and plastic products" (-10.8%), "Wood and furniture products" (-10.4%), (-8.5%), "Metal products, machinery and equipment" (-7.3%), "Transport material" (-3.3%), "Textiles and goods (-3.3%) and "electromechanical products, informatics and industry" (-2.5%). On the other hand, the production of "Chemicals" did not change and the "Food Industry" (0.1%) and "Non-Metallic Minerals" (1.6%) grew.

"The production trend does not seem to recover and will continue until at least the middle of next year," says Pablo Bozzanno, executive director of the Argentine Chamber of Information, Electronics and Communications Industries (CIIECCA). "The installed capacity is less than 60%, companies are not saying goodbye now, but they do not renew the charges that are being lost," he warns, explaining that the only stronger companies are those that export and benefit from the devaluation and the new price of the dollar ".

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