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A bleak outlook for SMEs: 45% of machinery stopped and a 40% drop in sales

A bleak outlook for SMEs: 45% of machinery stopped and a 40% drop in sales

It is the role of the present State (among many others) to maintain the balance between the different forces in society and this is not even remotely happening. President Javier Milei chooses to fight all the battles at the same timewith the governors, mistreats them, tells them that he is going to melt them (and the inhabitants of the territory), abruptly lowers the transfers that correspond to the provinces in disproportionate proportions (in December 13.9% and in January 53 .35% compared to the same month of the previous year), and at the same time he fights with Lali Espósito for his social and political ideas.

Are we all your enemies, the workers, the SME businessmen, the regional producers, the cooperative members, the entrepreneurs, the artists, the retirees?

Do not say that the Government does not intervene because it does, it operates by distorting to the point of failure a dialogue and resolution table that worked over the years. Some better, others worse, but it worked, we are referring to the Mobile Minimum Living Wage Table (SMVM).

It is implemented by law (but it seems that its institutional attachment is scarce, we saw it with the DNU), with equal participation of businessmen (16) and workers (16), it always had the representation of all the sectors that do the work of the production and work. But in an unprecedented way this year they did not call all the representatives of SMEs (we are only 95% of the companies in the country, we produce 50% of the GDP and absorb 70% of the workforce).

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SMEs fear a scenario similar to that experienced during the Macri administration.

Faced with an inflation of 25.5% in December, 20.6% in January, 15% in the first 15 days of February, how can you have the stomach to deny the increase when today it is $156,000 and the poverty basket is reaching $300,000? And we say it is being intentionally denied, because we participated as SMEs for many years and when the parties did not reach an agreement, the present State lauded, but a more or less satisfactory result was always reached for the parties.

Don’t tell us that there is no manifest intention when a social bottle increases by 204%, or electricity by 150%, or the bus by 250%, the subway by 360% or the school basket by 330% and not to mention food., medications and other essential elements for daily and dignified life. However, salary increases are not even talked about and the decision is postponed until March. Purchasing power falls and with it our internal market that lives, grows and creates jobs to the extent that the people have money to spend.

Last Thursday we met the textile, clothing, footwear, equipment manufacturers, and tanners chambers, together with representatives of the labor sector and the Provincial State. The proposal consisted of making a survey of the situation up to the present and a joint analysis of the future perspective based on a diagnosis as harsh as it shows that The installed capacity of our companies is being used at only an average of 54.9% There are already a number of factories that are completely stopped due to lack of supplies and low sales.

The situation to a greater or lesser extent is quite similar, sales drops of around 40%, with peaks as tanners at 50% since their raw material (leather) is sold salted and they do not have to process. In fact, when we stated more than 200 years ago that we could not export leather and buy boots made from our own leather, we went back to the time of Rosas. Something similar is happening in leather by-products, everything is fundamentally exported to Italy and China and nothing is left to work on and be able to add value to with our people.

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SMEs also report declines in sales.

SMEs also report declines in sales.

In leather goods the situation is even more serious since importers have proliferated and the world needs new markets to place its surpluses and what better than a country that generously opens its doors to them without asking for anything in return. Because they do not compare our generosity with the French farmers who, faced with the hypothetical import of their products, closed the entry routes to Paris, or with the tariff or para-tariff barriers of the United States, each country in this time of global recession (England entered yesterday in recession), protects its market, while we open it without establishing customs controls, without under-invoicing and over-invoicing control systems.

We must set off the alarms as soon as possible, we know this path, which is the same one that Martinez de Hoz, Menem and Macri applied, with catastrophic results. Now it is worse, Milei wants to make a terminal adjustment, turn us into agro-exporters, prioritize the economy to the point that we export mining and energy, but for that model there are at least 20 million Argentines left over. That is why SME entrepreneurs must react now, when we still have the strength to raise our voices and fists if necessary. They come for everything, for our monetary sovereignty, for our territorial sovereignty, for our natural resources, for our drinking water.

Let us not continue to be fooled by easy words like “zero fiscal deficit.” Only two or three countries in the world are managed that way and there is practically no way to grow with that lie. Capitalism is based on well-applied credit and it is not true that with 0 deficit inflation ends. Start by controlling the price makers and you will have better results, both social and inflationary, or are they your friends? Think about it Mr. President, you still have time.

Secretary of the CEEN – Central of National Business Entities

Source: Ambito

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