Daniel RosatoPresident of Argentine Industrial SMEs (IPA), expressed concern about the next fate of the small and medium manufacturing companies. He pointed out that the decrease in consumption, the lack of competitiveness in international trade and the opening of imports are negatively affecting these companies, generating a crisis that is already being felt in the country’s industrial factories.
“The loss of workers’ purchasing power generated a drastic reduction in the internal market, which caused a drop in national production. At the same time, the inflation of manufacturing costs, the lack of competitiveness of SMEs to export and a greater supply of finished products on the shelves of supermarkets became a time bomb for industrial SMEs,” Rosato warned.
Energy tariff: the transfer to gondola prices
In that sense, the president of IPA added an even more serious fact. “For a triple increase in the energy of industrial SMEs“A vicious circle will be created, which will result in a drop in consumption, loss of jobs, inflation and destruction of factories.”
In that sense, he detailed the impact on electricity rates: “In the January bill there was a 40% increase in the Wholesale Electricity Market (MEM), arranged by Cammesa. To this we must add increases in February and April, which will accumulate 314% for the industry; which will mean a 30% increase in gondola”.
And Rosato adds that, “the strong increase in energy will cause more inflation; the late dollar generates problems in foreign trade; and the crisis of the internal market, due to a drop in purchasing power and production, will aggravate the situation of workers; and, again, it will affect consumption.”
Finally, the industrial leader points out that this is not a reckless speech, but rather a warning to be able to analyze the situation and “see what we dogiven the possibility of the deepening of the economic crisis” in another request to the national government to advance a dialogue that evaluates solutions for the sector.
According to the IPA Observatory, a space that produces reports with statistics and economic analysis of the variables that affect the world of small and medium-sized industries, andn In Argentina there are a total of 547,970 companies, of which 536,076 are SMEs (97.8%) and 11,894 companies are large (the remaining 2.2%).
The Observatory’s report included the identification of three key stages in the life of SMEs: the first called “Exit from Convertibility”, with a decrease in factories of around 8% in 2002, compared to 1996; the second called “Recovery”, which extends from 2003 to 2013 and expands the presence of the sector by 61% compared to the previous stage”; and a third named “Stagnation and fluctuation”, which lasted until last December, which included the pandemic crisis.
Source: Ambito
