In the last two decades, the Argentine textile industry has experienced a roller coaster between openings and closings to the global market. This back and forth has deeply damaged the national productive fabric. However, it is crucial to understand that Argentina is not just an agricultural country; needs to maintain and strengthen an industry that generates a significant number of jobs.
From the limited use of installed capacity to the salary burden of operators (which in dollars increases day by day) the Argentine textile industry faces numerous challenges that make it less competitive compared to other countries. The situation is even more complicated when we consider the high costs associated with the national production of any item.
It is important to recognize the efforts of companies in the sector, which have invested in equipment and improved their production processes in recent years. Between the years 2020-2023 More than 700 million dollars were allocated to enhance the textile industry in the country, including capital goods, infrastructure, machinery, technology and expansions.. However, with a shrinking domestic market and a high tax burden, growth prospects are limited.
Argentina is not only an agricultural country; needs to maintain and strengthen an industry that generates a significant number of jobs
In a country that has gone through strong changes in a short time, the textile industry is recognized as resilient to overcome them and sustain itself. Over the years, we have worked tirelessly to bring technological innovations to thousands of entrepreneurs who managed to maintain a source of income in their homes and who have progressed by improving their design and quality. International meeting spaces demonstrate the industry’s efforts to maintain its competitiveness and profitability.
The indiscriminate opening to the foreign market is not the solution to the high prices of clothing in Argentina. Never opening imports reduced prices to the public, but generated enormous profits for importers. Let us not forget that clothing is a seasonal product and the balances of products that the countries of the northern hemisphere have not been able to market will be sent at minimal prices. It is only worth observing the Chilean phenomenon that receives tons of textile surpluses and immense clothing garbage dumps are formed.
In the complex world of fashion, three types of countries are distinguished. The “A” countries, mainly European, stand out for their excellence in design and leadership in the global arena. Meanwhile, the “C” countries, India and Sri Lanka, are characterized by their low labor costs and are the world’s leading garment manufacturers. Argentina, for its part, is in an intermediate position, oriented towards its internal market, which limits its growth capacity and increases production costs.
Between the years 2020-2023, more than 700 million dollars were allocated to boost the textile industry in the country
We face a crucial moment for the Argentine textile industry. We must take concrete measures to strengthen and develop our sector, thus ensuring a prosperous and sustainable future for the industry and its workers. In the past and in the future, indiscriminate importation only leads to an increase in unemployment and a reduction in domestic consumption, creating a harmful cycle for the country’s economy.
It is essential to promote the growth of local businesses and work collaboratively with the government to reduce costs and make our products more internationally competitive.
The majority of garment factories in our country are medium or small workshops, often family-owned, and lack access to advanced technology and specialized training. This situation has generated criticism due to the perception of not meeting international quality standards. To improve, it is necessary to implement productive policies that contemplate a minimum medium-term horizon.
We are hopeful that in the coming months the purchasing capacity of the population will improve, with a decrease in inflation, and that we will find a positive path towards work, investment and production.
The author is manager of Emitex, Simatex and Confemaq
