The SME industry continues in the sixth month and only 58.6% of the installed facilities operate. Despite increasing the proportion of industrial growth, 74% believe that the company's situation is common, bad or critical. Only 18.7% are expected in the next three months. The lack of market liquidity, the poor quality of the payment chain, the imbalance of interest rates and the difficulty of returning liabilities make it harder for SMEs to keep their businesses and businesses continuously reduced or reconsidered.
-In the day-to-day market, industrial production of SMEs fell by 5% in October compared to the same month of last year. For the sixth consecutive year, the industry goes down.
-Santoesa grew by 5.6%, which is essentially the stability of the month. In a 10-month period, there was a 1.9% drop compared to the same period of 2017.
-Data in the CAME Industry Industry Monthly Survey, among the 300 small and medium sized companies in the country. The Industrial Production Index registered a value of 79.8 points per day for SMEs (IPIP).
– "Shoes and leather goods" (-15%), "Rubber and plastic products" (-10.8%), "Household products and furniture" (-10.4%), "Paper, cardboard, printing and printing" (-8.5%), "Metal products, machinery and equipment" (-7.3%), "Transportation material" (-3.3%), "Textiles products and clothing" (-3.3%) and "Electric-mechanical products, computing and factories" (-2.5%). On the other hand, the production of "Chemical Products" has not changed and "Nutrition Industry" (0.1%) and "Non-metallic Minerals" (1.6%) have grown.
– "The trend of production has not recovered and will continue until at least the next half of next year," says Pablo Bozzano, Executive Director of the Argentine Information, Electronics and Communications Industries Chamber (CIIECCA). "The installed capacity is less than 60%, the companies do not say goodbye, but the expenses that are being lost are not renewed," he notes, as the only companies that are stronger, "export and profit. Devaluation and the new dollar price."
In October, 53.9% of the industries registered a fall in annual production (58.9% in September) and 36.7% (30.9% in the previous month). While most companies continue to fall, the proportion of growing industries has improved.
In October, the proportion of the companies with a positive profitability improved again: 36.3% in September, 32.1% and 28.9% in August. Negative profitability and zero industrial percentage remain high. But many companies have reduced their businesses, workers have stopped them and they reduce all types of costs to maintain their businesses.
– "In the case of dairy industry, the rise in costs, the rise in raw material prices, the higher labor costs and the fall in consumption are undergoing a serious economic situation," explained Pablo Villano, Association of Small and Medium Enterprises (APYMEL).
-The demolition chain continues to deteriorate. Daniel García, CEO of the Household and Household Effective Household (CAFLED), says "it means that suppliers have a payload of 30 days and customers of 120. The companies in the sector create a debt that is rigorous." The consulted industries have agreed that the payment chain stays in 120 days and has a lot of difficulties with discounting checks.
-The commitment to use the installed capacity for the device again rose to 58.7% in October, but it is still small that the activity has fallen.
-Afterwards, expectations are still unresolved: 18.7% of the companies consulted expect production to increase over the next three months, and 29% believe it will fall. The rest do not know or think that it will continue today.
-Posibly explain why it has not received any investment: 10 of 7 sectors do not have any new investments planned over the next three months.
The Industrial Production Index Index (IPIP) measures the monthly yield of small and medium-sized manufacturing (PYME) in Argentina in Argentina. In the first 20 days of the month, information is obtained according to the direct surveys conducted among the 300 industrial companies in the country. A group of thirty interviews conducts a monthly survey of CABA and GBA (south, north and west). On the other hand, CAME is responsible for the quality of the information gathered by a group of 6 heads and coordinates the group of interviews.
Surveyed companies have been selected based on three variables:
1. Type of product prepared by the company: the sector's level of activity directly (as a production indicator indicator) or indirectly (sector that indicates the level of activity is reliably reflected) another sector).
2. Geographical location of the company: selected companies located in regions producing pre-selected products.
3. Quality of the information: the companies were able to verify the quality and accuracy of the survey data.
IPIP 11 is divided into industry branches. To determine the value of IPIP, the index numbers are drawn for each of these branches, and the overall level of evolution of industrial production in terms of physical volume. Index numbers are useful for homogenizing variables, making comparisons with time. The series base year was established in December 2008.
The weight of each branch of industry was based on the SME Map of the 2004 Economic Census and Sepyme. The weight assigned to the sector can be read in the following table: