In this sense, a survey of UIA Study Center (CEU) reveals that although the percentage of companies with an increase in production increased to 32.8% compared to the 21.5% registered in January, compared to the last quarter of 2021, the data shows a plateau. “In October 2021, the percentage of companies with production improvements exceeded 40%,” says the report. In relation to sales, 31.3% of the companies say that they rose, but in the last quarter of last year it was 40%.
Apparently, an exogenous element is weighing, according to the report, “Local difficulties in terms of costs, supplies and logistics have worsened since the beginning of Russia’s invasion of Ukraine”, says the CEU. The work deepens that “9 out of 10 companies were affected by the rise in the cost of transportation and 7 out of 10 by the rise in energy costs”. Factors of concern were surveyed, such as the difficulty in supplying inputs (58% had difficulties) and import payments (45% had difficulties).
Another report, from one of the chambers that make up the UIA, the Association of Auto Parts and Components Factories (AFAC), warns of a decrease in production in the first quarter of the year of 5.9% compared to the same period of the year past. “The main cause of this result was the low level of activity recorded during the first months of 2022,” says AFAC. The report adds that in April, as happened with the industry as a whole and the other items related to the sectoral complex, auto parts “presented a slight drop compared to March, which stood at 1.1%, accompanying the trend registered by the rest of the sectors.
During the long weekend, the president of the Argentine Industrial Union (UIA), Daniel Funes de Rioja, warned that in order to improve production levels and competitiveness it is necessary to achieve “macroeconomic stability” and that inflation be controlled to provide a framework of certainty. “What worries us is inflation because of the lack of predictability it causes. We need economic stability to produce”, affirmed the head of the manufacturing plant, who foresees a first meeting with the brand new Minister of Productive Development, Daniel Scioli, in the coming days. Scioli is not unknown to entrepreneurs. In his role as ambassador to Brazil, he visited the Funes de Rioja plant on several occasions, insisting that it is “It is necessary to clear up doubts at the national level” to face an “unpredictable and highly uncertain international scenario” due to the effects of Russia’s invasion of Ukraine. Among other things, he insisted on the need for a tax reduction and called for “leveling the balance.”
Source: Ambito
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