According to a statement from the Argentine Chamber of Medium-sized Enterprises (CAME), the industrial production of Pyme fell by 7.3% in July, which is three consecutive months of retraction. Likewise, from the business chamber they warned that the use of installed capacity decreased again and stood at 57.9%. In any case, they assured that profitability had a slight improvement due to the increase in the exchange rate.
During July, according to the Pyme camera, the industrial production of the sector retracted by 7.3% in July, compared to the same month last year, thus recording the third consecutive fall, placing it at the lowest value of the series since they started taking measurements, in January 2008.
These data are derived from the Monthly Industrial Survey of CAME, which was made to 300 SME industries in the country, and which showed an Industrial Production Index Pyme (IPIP) of 72.4 points in July. Also, from the business chamber explained that, compared to June, there was a fall of 4.4%, in the measurement with seasonality, although if you analyze the 7 months of this year there was a growth of 0.1% compared to the same period last year.
Also, from the CAME explained that in July only 26.1% of companies grew, while the use of installed capacity fell to 57.9%. In any case, they warned that profitability registered a slight improvement and increased to 38.3%, as regards the proportion of firms with positive results.
In that sense, they detailed that the 11 branches that were relieved by the business chamber, all registered falls: Manufacture of Electrical-Mechanical Products, Computer and Manufacturing (-13.5%); Paper, cardboard, edition and printing (-10.6%); Wood Products and Furniture (-10.2%); “Metal products, machinery and equipment” (-7.9%); “Footwear and leather goods” (-7.4%); “Transportation Material” (-6.6%); “Textile and clothing products” (-6.3%); “Food and beverages” (-6.0%); “Rubber and plastic products” (-5.6%); and “Chemical products” (-4.3%).
However, they warned that the increase in the exchange rate led to an improvement in profitability. “The export of wines increased 150% annually in July, but the situation of the industries in general is still complicated, with downward trends, with the industrialists very compromised by the tax pressure, taking debts at 60% per year to pay taxes, and with a cut in the chain of payments that exceeds 90 days, since suppliers demand cash payment and customers pay at 60, 90 and up to 120 days, “explained Guillermo Daniel Cabrera, of the Economic Federation of San Juan.
In addition, from the CAME stressed that the annual growth was placed in July in 26.1% of the industries, being that in March had increased to 48.7% of SMEs, in April in 44.3%, in May 39.4%, and in June 34%. While, on the other hand, the “proportion of factories in decline increased to 58.1% and another 15.8% remained unchanged,” they said in the statement.
“Some companies in this sector were favored by the increase in imports, but for now that is only allowing to contain a stronger collapse of production in a market where consumption is very withdrawn,” they asserted from CAME and added: “The financial and exchange uncertainty, the high interest rates, the high indebtedness ratios and the tax pressure are the main limitations for the investment to take off”.
To conclude, they highlighted that “despite the tax advantages that the SME Law brings, for different reasons only 21.1% of the industries are using their benefits.” In turn, there is a 7% that although it was registered, he can not access the benefits because as a result of the economic situation, he no longer meets the requirements. “