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The industry used 68% of its installed capacity and is approaching levels from 11 years ago

The industry used 68% of its installed capacity and is approaching levels from 11 years ago
The industry used 68% of its installed capacity and is approaching levels from 11 years ago

The industry used 67.5% of his installed capacity during the first quarter of the year, reflecting a constant increase after the pandemic and reaching levels that it had not reached since 2013, according to a study by the Chamber of Industries of Uruguay (CIU).

Not counting the refinery Ancap nor the companies of free trade zone, the Industrial production It grew from 65.2% in the same period last year and was close for the first time in 11 years to the 68% it held in January-March 2013.

From the CIU They highlighted that the improvement is explained by the decrease in capital stock of the sector, a trend that has been observed since 2016, noting that the industrial core production verified a drop of 6.4% in the same comparison.

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The competitiveness of the internal market, an impediment

When investigating the causes that led to using a level of productive capacity less than potential, businessmen in the sector considered the competitiveness of the internal market as the main impediment, the CIU warned.

However, the problem registered a drop compared to previous surveys, which may have to do with the decrease in price gap with Argentina, which could have led to a partial correction of the consumption diversion.

Another key factor for businessmen were the “aspects linked to competitiveness in the external market increasing with respect to previous measurements, perhaps alluding to the exchange delay which generates restrictions on industrial exporters.

Further back, with fewer mentions, factors such as sufficient inventory, seasonal reasons, insufficient supply of raw materials and the lack of profitability.

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The capacity of the industry in the region

When comparing the idle capacity of the industry of the countries of the region, it is observed that the improvement of Uruguay in activity level had its correlation with that of Brazil, which increased one percentage point and reached 78%.

At the same time, Argentina It decreased eleven percentage points in relation to the same quarter of 2023, remaining at 53%, largely due to the drop in industrial activity that the neighboring country witnessed in the first months of the year, according to the CIU report.

Source: Ambito

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