The latest survey carried out by the Industrial Union of Córdoba (UIC) of its associated companies throughout the province could conclude that “the year is lost.” The thing is that, although there is optimism for the future, few expect positive changes in the short term and despite still going through the first half of 2024, they are already betting that the trend break will occur only in 2025.
The fact is that currently, the collapse continues and the light at the end of the tunnel has not yet appeared. And this is explained by the fact that 45% of those consulted admitted to having a lower level of production in April than in the first quarter, which had already begun with serious difficulties. The recessionary process, the result of adjustment and the economic crisis, remains vigorous.
Compared to last year, the outlook is gloomy: a drop in production, a drop in profitability, lower investments and a general economic situation that has deteriorated.
“Córdoba’s industry faced a challenging month of April, with 45% of industrialists reporting a reduction in the physical volume of production compared to the monthly average for the first quarter of the year. This productive weakening reflects a significant slowdown in manufacturing activity, which may have serious implications for both the competitiveness of local companies and the sector’s income.”
New level of crisis
And the next step of the deterioration began to manifest itself: the cutting of job sources. Although the industry is always highlighted as a sector that resists parting with its personnel due to the investment in training and necessary profiles, the trickle began to accentuate: in April, one in four companies decided to cut employees. The same report highlights that, however, in the future, those that are considering some type of adjustment on the labor side do so by projecting reductions and not layoffs. In any case, as long as activity does not recover its rhythm, the risk of more landslides continues.
According to the survey, “although 70% of the industries did not change their staffing, the 24% reduction in the number of employees reflects a substantial impact on the labor factor, indicating adjustments and possible difficulties in the workplace. The situation is particularly critical in the case of micro companies, where almost a third made decisions that involved reducing the number of collaborators,” highlighted the Industrial Union.
At the other end, in demand, is the main problem. The deterioration of the pocket led to a sharp drop in consumption and that began to impact first on commerce and then moved upstream to industry.
“The month of April witnessed a contraction in the dynamics of local orders. 51% of those interviewed experienced a contraction in their order book, while 28% managed to stay afloat in a sea of economic uncertainty,” summarizes the survey by the Industrial Union of Córdoba.
Gonzalo Dal Bianco. Puntal Editorial
