It is observed that there is idle capacity to increase production, although the lack of inputs and the absence of reference prices slow down investments and decisions to incorporate more personnel. In any case, in the second fortnight of the month, the industries consulted noted a drop in consumption.
These results arise from the SME Industrial Production Index (IPIP) prepared by CAME, with a sample that reached some 375 SME industries at the federal level.
Sector Analysis
The best performance in September was in “Chemicals and Plastics” with an annual increase of 9.8%. The worst happened inTextiles and Clothing” with a decline of 9.8% in the same period.
1) Food and drinks: Production climbed 6.4% annually and 3.3% monthly in September. The start of parties and events was noted, which increased orders in SME industries such as confectioneries, ice cream parlors, bakeries, pasta and other food processing. The concern of the month was the prices of products such as flour, sugar and vegetables, which displaced the costs of many goods, but there are good expectations for December and January. As far as 2022 is measured, until September, the activity maintains a growth of 3% compared to the same months of last year.
2) Clothing and textiles. Manufacturing fell 9.8% annually and rose 3.6% monthly in September. The sector works with high levels of its installed capacity, there is little room to further increase production, but profitability, according to the companies consulted, is low. The sector faces salary pressures, permanent cost increases in all supplies and rents. There is a lot of uncertainty, it is the fourth consecutive month that manufacturing has fallen in the annual comparison, although in the accumulated figure for the nine months of the year this branch still maintains a growth of 3.4% compared to 2021.
3) Wood and Furniture. Manufacturing fell 7.6% annually and also registered a drop of 8.3% monthly. September was bad, and the exporting firms in the sample agreed that it is no longer profitable to sell abroad. Delays in the deliveries of inputs continued, there are problems with the supply of raw materials, both imported and domestic, and volatile prices make it difficult to plan production or establish sales prices for advance orders. There are deliveries that are scheduled for 60, 90, 120 days or more, but prices change week by week, the companies warn.
4) Metallic, machinery, equipment and transport material. Production increased 0.1% annually in September and 0.6% in the monthly comparison. Although there was a slight increase, some of the firms surveyed expressed concern about the drop in inquiries and requests for quotes. In addition, they expected September to be better than August and that generally did not happen. The problems to obtain raw materials continued, however, the companies are managing and organizing the production and deliveries according to what they manage to obtain. “What can be replaced, what cannot be expected”, was one of the phrases commented on by an industrialist surveyed for this report.
5) Chemicals and plastics. Manufacturing rose 9.8% annually and 0.7% monthly in September. The companies had very different results, and the sector lost the firmness with which it had been working. Wage pressures and the impact of the new import system on input prices are of concern. There are good prospects for the end of the year.
6) Paper, cardboard, editing and printing. Production declined 1.1% annually and 9.2% monthly. Many companies were surprised by the month-on-month drop given that September seasonally tends to be better than August, and attributed it to factors such as power outages, work stoppages and the greater trend towards virtuality, which was noted in this period, especially in the event invitations. The increase in the cost of inputs such as inks, glues and papers also had an impact, which, according to some SMEs, marked a break in manufacturing orders. In the sum of the year, between January-September, the sector grew 3.7% annually.
Source: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
