Industrials in the electronic, electromechanical, and lighting sectors have expressed mixed opinions about the evolution of the economy in the first quarter of the year. According to a report from the Argentine Chamber of Electronic, Electromechanical, and Lighting Industries (CADIEEL), half of the respondents plan to invest during this period, while the other half will stay on the sidelines due to decreased sales and political and economic uncertainty.
Regarding production, 30% of those surveyed expect an increase, which could be interpreted as a positive indicator of economic growth and demand. On the other hand, 60% expect to maintain current levels, and only 10% anticipate a reduction in their production. As for employment, only 13% expect to increase their workforce, while 23% foresee a reduction.
Regarding exports, 33% of respondents reported making them, but 70% indicated that they represent between 1% and 10% of their total sales. It is noteworthy that the proportion of exporting companies has decreased by 19% compared to the previous quarter, with cost issues being the main reason for those companies that do not export, as stated in the report.
In terms of production levels compared to the fourth quarter of 2023, the report indicates that 57% of the surveyed SMEs experienced an average decline of 40%. The energy and lighting sectors were the most affected, especially the latter with an average decline of 71%. Conversely, 23% of companies reported an increase in their production in the current quarter, mainly those in the electronics sector with an average increase of 32%.
Regarding the Use of Installed Capacity, respondents indicated that it remained stable in the fourth quarter of 2024, with most companies operating at intermediate levels. A slight decrease was observed in the segment of highest activity and an increase in the range of 21 to 40%, indicating operations below the optimal level.
