7 out of 10 industrial SMEs say they are in trouble due to the drop in consumption

7 out of 10 industrial SMEs say they are in trouble due to the drop in consumption

The drop in domestic consumption As a result of the adjustment carried out by the Government, it is severely impacting small and medium-sized companies, whose main market is the domestic market. According to a private survey, 70% say they are in trouble for that reason.

Almost 70% of industrial SMEs warned that they are going through an activity crisiscaused by the collapse of consumption in the domestic market, and which strongly affected employment,” says the report on a survey carried out Argentine SMEs Industriales (IPA). The study was coordinated by economists Martín Kalos and Pablo Bercovich, from the consultant Epyca.


The study indicates that “almost 80% of industrialists throughout the country were pessimistic about the future of their businesses over the next twelve months.”

The survey, which was carried out during the second half of May, revealed that 31.3% of the SMEs consulted went through a “very bad” situation during the first five months of the year; while 38.2% described it as “bad” and 26.3% considered this stage “good.” Only 4.1% rated it as “very good.”

We have been warning that, without an industrial plan, there is no possibility of sustaining jobs. But what is worrying is the beginning of plans to close factories, in the face of a future that is no longer uncertain, but rather with the continuity of the crisis,” said the president of IPA, Daniel Rosato.

The leader pointed out that “at this point, and without valid interlocutors in the Government, We fear that the plan, in reality, is a new industrialicidebut faster and more damaging, which will leave Argentina on the verge of the primarization of its economy.”

According to the survey, “the most worrying data arose from expectations for the next twelve-month period.”

A 55.3% of those surveyed predicted a “worst” scenario for sector activity; and 23.5% predicted the continuity of the crisis it is currently experiencing by not expecting “relevant changes.” Only 21.2% expect production conditions to be “better” for that period.


On the other hand, the work describes as “alarming” the willingness of companies to lay off personnel. The survey indicates that 35% of SMEs could lay off staff, although 55% said they are going to keep their staff and 10% are thinking about hiring employees.

“Given the impossibility of paying salaries, many factories have to let go of their workers, whom they trained and who are part of the industrial family,” the report says.

Source: Ambito

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