Argentinas metalworking sector experienced a significant downturn in 2024, recording a sharp 7.3% year-on-year decline in September.This drop contributes to a cumulative contraction of 14.1% for the year so far.
The Metalworking Industrialists Association of Argentina (Adimra) released these figures on Monday.This crucial sector of Argentinas industrial chain continues to report declines across most of its segments.
The downturn affects both the utilization of installed capacity and employment levels.Adimras statement revealed that most metalworking industry segments showed negative year-on-year variations in September.
Analyzing the value chain reveals widespread declines in production across companies.Argentinas Metalworking Industry Faces Steep Decline in 2024.
(Photo Internet reproduction)This trend applies to the most important value chains supplied by the metalworking industry.
The utilization of installed capacity has also suffered a year-on-year decrease.Over the past 12 months, installed capacity utilization has fallen by at least 5%.
Compared to the same month last year, it decreased by 5 percentage points.
The 2024 average is 9.9 percentage points below the 2023 average.Employment levels in the sector have also taken a hit.
Adimra reported a 3.2% year-on-year decrease in September.
However, not all segments of the industry are experiencing decline.Argentinas Metalworking Industry Faces Steep Decline in 2024The Agricultural Machinery and Bodies and Trailers sectors have seen production increases in 2024.
These sectors were heavily affected by drought last year.
In contrast, the Foundry sector recorded its second most intense contraction of the year.The foundry sector saw a 23.5% drop compared to the previous year.
Several provinces with metalworking production have been particularly affected.
Buenos Aires province experienced a contraction stronger than the general average.Other provinces facing significant challenges include Mendoza in the west, Entre Ros in the northeast, and Crdoba in the center.
The metalworking industrys decline reflects broader economic challenges facing Argentina in 2024.