Industry: 90% of foundry companies expect a drop in profitability and more than half project less employment

In the context of the deep crisis that the industry manufacturing, Nine out of ten foundry companies expect a drop in profitability in 2024. As a result of the slump in activity, More than half of firms project lower employment levels.

The results reported in the First national survey of expectations of the foundry industry (EIF) They found that 56.1% of respondents have “somewhat negative” expectations for the current year, while 18% see a “very negative” outlook. Furthermore, only 12% expect greater demand and 54.2% estimate that employment in the sector will suffer a reduction.

The survey, carried out by the Chamber of Foundry Industrialists of the Argentine Republic (CIFRA)showed in turn that The main concern of the sector is the shortage of labor and the lack of training of workers. “As the industry advances, it becomes crucial to address this challenge to ensure sustainable growth and competitiveness in the global market,” CIFRA said.

Other concerns listed by several companies were: difficulties in placing production in foreign marketsliving with the growing environmental regulations and the tax pressureIn this recessionary context, 88.9% of the companies surveyed foresee a decline in profitability.

However, CIFRA highlighted that, Despite the uncertain outlook, more than 40% of foundries plan to increase their investments“This willingness to continue investing in growth reflects a commitment to the future of the industry, even in difficult times,” said the entity that brings together businessmen in the sector.

The foundry industry in Argentina today

Casting involves the manufacturing of Key parts for various strategic industries in the country, mainly the automotive, steel and agricultural machinery industries.Today in Argentina there is an installed production capacity of 180,000 tons per year, of which 56.6% was used in 2023.

The EIF surveyed 316 foundry companies, most of them dedicated to ferrous foundries. Almost all of the firms are distributed between the Province of Buenos Aires, Santa Fe and Córdoba.although there are also three companies in Mendoza, two in Entre Ríos, two in Tucumán and one in La Pampa.

In terms of employment, the sector generates 6,300 direct jobs and 52,000 indirect jobs.

“According to the survey results, foundry plants have operated at a good level of installed capacity for the past 10 years, and the number of jobs remained above average for the same period. In addition, When comparing the production and population of countries in the region such as Brazil, it is believed that Argentina has a growth potential of up to ten times its current capacity.”stressed CIFRA.