Industry & Retail
From The Report: Argentina 2018
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Accounting for roughly 16.7% of Argentina’s GDP, manufacturing was the largest contributor to the economy in 2017. Industrial output is highly diversified within the sector. In 2017 food and beverage processing comprised 30.9% of gross production value. This was followed by chemicals manufacturing (13.6%); motor vehicle and auto parts manufacturing (7.4%); petroleum refining and nuclear fuel (6.4%); and base metals production (5.7%). While estimates vary, the government predicts that construction, agriculture and energy production, along with the continuation of liberalising reforms, will encourage economic growth in 2018. After the manufacturing industry, the wholesale, retail and repairs sector is the second-largest component of Argentine GDP, contributing 13% in 2017. Looking forward, retail will witness a moderate growth tied to the improving performance of the economy and the reconfiguration of financial policies. This chapter includes interviews with Dante Sica, Minister of Production; and Miguel Acevedo, President, Argentine Industrial Union.

Articles from this Chapter

Overview

Engines of growth: After a period of stagnation, automotive manufacturing and metals production to drive industry
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The continued liberalisation of the Argentine economy has been a boon for local industry. Pro-business reforms implemented by the administration of President Mauricio Macri, as well as the recovery of the Brazilian economy, have helped manufacturing begin to rebound from a period of stagnation that began in 2015 with the onslaught of the wider economic recession. Accounting for roughly 16.7% of Argentina’s GDP, manufacturing was the largest contributor to the economy in 2017, according to data…

Analysis

Cream of the crop: Initiatives take food and beverage promotion to the next stage
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Being a sizeable producer of agricultural goods, Argentina is in a favourable position to reap the benefits of rising global demand for food products. According to figures provided by the Ministry of Agro-industry (MoA), in 2017 food exports amounted to $25bn and accounted for 43% of total Argentine exports. That same year, the food and beverage (F&B) industry represented 26% of manufacturing GDP. Performance The sector is dominated by small and medium-sized enterprises (SMEs), which represent…

Overview

Shifting landscape: Retailers aim to keep pace with changing consumer demand and the rise of online shopping
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After the manufacturing industry, the wholesale, retail and repairs sector is the second-largest component of Argentine GDP, contributing 13% in 2017, according to the National Institute of Statistics and Censuses (Instituto Nacional de Estadística y Censos, INDEC). As with other sectors, the effects of the economic recession that began in 2015 are still being felt. Rising prices and economic uncertainty have changed consumer behaviour to favour low-cost and wholesale goods at the expense of regular…

Interview

Changing gear: Dante Sica, Minister of Production, on improving productivity and competitiveness
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Interview :Dante Sica In a context of macroeconomic and currency volatility, what can be done to boost industrial activity? DANTE SICA: We need to overcome the systemic lack of competitiveness in the economy. Roundtable discussions – involving the state, companies and workers – are helping us to find productivity-enhancing solutions for each industry. At the macro level we are implementing the Federal Development Plan, which consists of eight pillars: reducing the cost of capital, improving…

Interview

Training for change: Miguel Acevedo, President, Argentine Industrial Union, on the effects of Industry 4.0 and inland development initiatives
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Interview :Miguel Acevedo How have technological advances transformed the landscape, and how are domestic industrial businesses adapting to this shift? MIGUEL ACEVEDO: Industry 4.0 is not the future; it is already here. Technological change is happening at a very fast pace. Factories have new machines and robots, which means that less labour is required in a wide variety of sectors. This is a global challenge, and we must adapt to a new and continually changing situation. Local industrial…