Activity level: in May, 6 out of 10 industries had problems operating

A smaller proportion of the manufacturing industry was inactive during May compared to April, according to the qualitative survey carried out by Indec to measure manufacturing performance during the health emergency.

During May, of the more than 1,700 surveyed industries, 38.6 percent operated normally, while more than 60 percent partially operated or had no productive activity.

The data reflects a slight improvement compared to April, when the survey showed that of the more than 1,300 companies, 33 percent declared that they had operated normally, while the rest had problems in doing so, due to partial or total closure.

Reasons

Among those locations that partially operated or had no productive activity in May, more than 50 percent stated that, although they were enabled to produce, they did not have the necessary personnel to operate or had no orders. More than 40 percent stated that the main cause was that it should have been closed totally or partially due to the isolation decreed by the health emergency.

In better condition

In the “food, beverages and tobacco” manufacturing sectors, 78 percent of companies indicated that they operated normally. The factories dedicated to “oil refining, chemicals, rubber and plastic products” did so with 45 percent, and the “wood, paper, publishing and printing” industry with 40 percent of the premises operated normally.

The three sectors were those that manifested the least problems to operate during the fifth month of the year.

Those who have the worst time

In contrast, “automotive and other transport equipment” and “textiles, clothing, leather and footwear” were the sectors that presented the most problems, since approximately 90 percent of the premises were unable to operate normally, according to the survey.

The companies in the “textile, clothing, leather and footwear” category presented the highest rate of premises without productive activity: 39 percent.

Disadvantages

Among the manufacturing premises that operated normally or partially during May, the main problems expressed were the decrease in internal demand derived from isolation and financial problems; more than 30 percent indicated these difficulties with high importance.

The two sectors that reported the greatest importance to the decrease in domestic demand due exclusively to insulation were “textiles, clothing, leather and footwear” and “automotive and other transport equipment”. A 66 percent of the premises of each one of these sectors indicated with high importance this problem in May.

Regarding financial problems, in the “textile, clothing, leather and footwear” sector, 50 percent of manufacturing locations that operated normally or partially during May indicated this problem with high importance.

Among manufacturing locations that operated normally or partially during May, the main financial problem manifested was the extension of customer payment terms; 40 percent indicated high importance. In addition, 33 percent reported having high importance with rejected checks.