Argentina’s Metalworking Industry Faces Steep Decline in 2024

Argentina’s 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 Argentina’s industrial chain continues to report declines across most of its segments. The downturn affects both the utilization of installed capacity and employment levels.

Adimra’s 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.

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.

Argentina’s Metalworking Industry Faces Steep Decline in 2024

The “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 Ríos in the northeast, and Córdoba in the center. The metalworking industry’s decline reflects broader economic challenges facing Argentina in 2024.