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which were the featured sectors

which were the featured sectors

In December two realities coexisted in the market. On the one hand, a firm demand in most sectors. But, on the other, cost increases that affected profits along with shortages of inputs that lengthened delivery times and reduced, in some cases, the quality of the product as it was replaced by others with lesser benefits.

The businessmen consulted agree that input costs and shortages are the biggest problems, displacing others. Although the high tax pressure is still present, it lost relevance in the face of the urgency of not being able to produce to supply demand. The results come from SME Industrial Production Index (IPIP) prepared by CAME, with a sample that reached 353 SME industries in the country.

CAME industry pyme.jpg

Analysis by sector

The best performance in the annual comparison was in the sector “Food and drinks”, which grew 6.8% annually in December and it is always a good sign that it increases. The worst was for “Textiles and clothing”which fell 4.6% annually.

  • Food and drinks: production increased 6.8% annually in December and 3.9% monthly, always measured at constant prices. The year closed with growth of 3.1%. The use of installed capacity rose from 71.7% in November to 75.5% in December, in a month of good activity, but with many cost increases that limited the impact of the month’s growth on the company’s profits.
  • Clothing and textile: production fell 4.6% annually in December and rose 6.9% monthly, measured at constant prices. In any case, the year closed with a growth of 0.4%. The use of installed capacity fell slightly, from 74.4% in November to 74.1% in the last month of the year. The rise in monthly production was only a consequence of the seasonality of the sector. On the other hand, sales continue to decline, affected by the price increases of the year and the loss of purchasing power of family income.
  • Wood and furniture: Production rose 0.3% annually in December and 0.4% monthly, at constant prices. The year closed with a retraction of 3.1%. Installed capacity fell two points, from 73.2% in November to 71.2% in December. The sector comes with good production orders, but one of its limitations is the lack of human resources to meet the demand. There are delays in deliveries that respond to import problems. One product that is in short supply is iron fittings, since they are hardly manufactured in the country.
  • Metal, machinery, equipment and transport material: Production rose 4.7% annually in December at constant prices and 0.4% monthly. The year closed with an increase of 2.9%. The use of installed capacity remained stable at 70.7%. There were many complaints from the businessmen consulted about the delays in approving the SIRA (Sistema de Importaciones de la República Argentina).
  • Chemicals and plastics: Production grew 4.4% annually in December at constant prices, but fell 4.5% in the monthly comparison. The year 2022 ended with an increase of 4.3%. The use of installed capacity for the month rose to 70.1% (+0.6 points vs. November) although it is the industrial branch with the least use. Being a sector that is highly dependent on imported inputs, it was where the most complaints were heard from SME manufacturers due to delays in approving SIRA and due to the lack of raw materials. Today they are the main obstacle to increase production.
  • Paper, cardboard, publishing and printing: production fell 3.1% annually in the last month of the year, at constant prices, but rose 6.4% in the monthly comparison. By 2022 the sector ended with a growth of 1.5%. Despite the annual drop, the use of installed capacity rose almost four points, to 79.1%, ranking as the item with the highest utilization.

Source: Ambito

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