Thursday , July 7 2022

SME industrial production fell 5% in October and only works with 58% of its installed capacity


Through a survey carried out by the CAME, it was announced that the SME industry went down for the sixth consecutive month and the sector is only working with 58.6% of its installed capacity. In this framework, 74% believe that the situation of your company is regular, bad or critical. Only 18.7% expect a rebound in the next three months.

"The lack of market liquidity, the low quality of the chain of payments, the excessive interest rates and the difficulties to repay liabilities complicate the business of SMEs and are forcing many companies to reduce or reconsider their continuity," they said .

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

Compared to September, there was an increase of 5.6%, which is basically explained by the seasonality of the month. For the 10 months of the year, a decline of 1.9% is accumulated compared to the same period of 2017.

The data arises from the Industrial Monthly Survey of CAME carried out among 300 SMEs in the country. The Index of Industrial Production Pyme (IPIP) recorded a value of 79.8 points in October.

The sharpest losses were given in "Footwear and leather goods" (-15%), "Rubber and plastic products" (-10.8%), "Wood and furniture products" (-10.4%), "Paper , "Carton, edition and printing" (-8.5%), "Metal products, machinery and equipment" (-7.3%), "Transport material" (-3.3%), "Textiles and clothing products of dressing "(-3.3%) and" Electrical-mechanical products, computer science and manufacturing "(-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 trend of production does not seem to rise and will continue at least until mid-year next," says Pablo Bozzanno, executive director of the Chamber of Computer, Electronics and Communications Industries of the Center of Argentina (CIIECCA). "The installed capacity is less than 60%, companies for now are not firing, but they do not renew the charges they are losing," he warns, explaining that the only companies that are stronger "are the ones that export and benefit from the devaluation and the new price of the dollar ".

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