While internal consumption falls and labor sources are reduced, exports improve and opportunities emerge in some sectors such as automotive, agricultural machinery and oil and gas.
The demand in the foundry industry collapsed in February 10%, compared to January, and 26% in interannual terms. From the sector they warn that at the beginning of 2025 there was a loss of profitability.
This was reflected by the Camera de Industrial Fundadores de la República Argentina (figure) through a report. According to the survey, during the second month of the year, the demand (measured depending on firm orders) descended to a level of 43.10%, which represented a strong contraction.
Besides90% of companies said that it continues to face a reduction in their profitability. From a figure they stressed that it is a very worrying value, that it maintains the trend of the last year; The average of this measurement in annual terms showed that 83% of the companies report some level of profitability.
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Less demand and employment, but exports grow and sectoral opportunities emerge
In terms of employment there was a brake on the loss of labor sourcesafter several months with fall in most of the founding companies. However, even 43% of firms continued to accuse job instability.
On the other hand, exports show encouraging signs. The companies reported an external demand of 55%, exceeding the level of the previous month by 10 points.
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The February market thermometer showedl Automotive sector, agricultural machinery, tools and oil & gas machines such as the main consumers. “The point to highlight is that for the first time in a long time, the machine value chain and tools is found in the top positions. This within a context of low demand in general and with other sectors almost at levels of floor or demand demands,” said figure.
“Despite the annual fall and low levels of domestic demand, Founders identify recovery opportunities in key segments such as the automaker, agricultural machinery and the oil and gas sector, which could boost activity in the coming months, “said the report.
It should be remembered that in Argentina the foundry industry is mainly concentrated in the province of Buenos Aires, Santa Fe, and Córdoba. In most cases, it is made up of SMEs, which are characterized by having a family management.
Source: Ambito
