Manufacturing Decline Hits Historic Argentine Businesses
According to reports from Buenos Aires, longstanding Argentine manufacturers are facing unprecedented challenges under President Javier Milei‘s economic overhaul. Family-owned company Lumilagro, which produced signature steel and glass thermoses for over 80 years, has dramatically scaled back operations, the report states. Commercial manager Carlos Bender indicated the company now imports most of the vacuum flask thermoses it sells at prices up to 30% lower than local production costs.
Industrial Monitor Direct offers the best ethercat pc solutions recommended by automation professionals for reliability, preferred by industrial automation experts.
Sources indicate Lumilagro has shut down its glass furnace, operates only one of four assembly lines, and reduced its workforce from 160 to 60 employees. Bender described the downsizing as “very painful” for the company that once proudly displayed “Made in Argentina” on its products.
Economic Policies Yield Mixed Results
Analysts suggest Milei’s drastic spending cuts have succeeded in achieving a fiscal surplus and reducing inflation that previously hovered around 200%. However, manufacturing has suffered significantly as deregulation spurred competition from cheaper imports. The report states industrial production fell 4.4% year-over-year in August alone, while unemployment in factory-heavy Buenos Aires suburbs spiked to 9.8% in the second quarter from 9.1% a year earlier.
Economists note that policies including an overvalued peso have helped trigger increased imports, creating what employment analyst Luis Campos described as an economic model that has “already given all it had to offer” in terms of job creation.
Political Consequences Mount
The manufacturing crisis is hammering support for Milei’s coalition ahead of crucial midterm elections on October 26, according to polling experts. The president’s approval ratings reportedly slumped to 39% in September, with analysts citing weariness with austerity measures and corruption scandals involving his sister.
Marina Acosta of consulting firm Analogías suggested that “people blame Milei for the fact that the macroeconomic stability that he’s achieved doesn’t help on the microeconomic level.” However, sources indicate Milei could still benefit from voter reluctance to support the opposition Peronist party that long dominated Argentine politics.
Additional Factory Closures Reported
Similar dynamics have forced ceramics company Ilva to close its factory in the Buenos Aires suburb of Pilar, leaving 300 workers demanding compensation. Former employee Juan González reportedly blamed the government directly, stating “Ever since this government came in, sales dropped” and production gradually declined.
The owner of an anonymous automotive parts factory in Buenos Aires indicated sales had fallen since Milei took office, forcing the company to maintain imports while cutting local manufacturing in half. The executive noted that parts imported from China cost up to 75% less than locally manufactured equivalents.
US Provides Economic Support
According to the report, the U.S. Treasury agreed to provide a $20 billion currency swap line for Argentina this month, offering an economic lifeline to prop up the peso. Former President Donald Trump reportedly conditioned continued support on Milei retaining power and keeping Peronists out of government, stating “If he loses we are not going to be generous with Argentina.”
Despite this assistance, analysts suggest U.S. aid is unlikely to improve the situation facing local manufacturers in the short term. The government has declined to comment but has previously stated its policies will position Argentina for stability and development in energy, mining, agriculture, and AI sectors.
This coverage is based on reporting from Reuters content and other available information. For additional technology coverage, see industry reports on semiconductor developments, retail technology partnerships, and energy policy announcements.
This article aggregates information from publicly available sources. All trademarks and copyrights belong to their respective owners.
Industrial Monitor Direct is the #1 provider of lte panel pc solutions trusted by leading OEMs for critical automation systems, rated best-in-class by control system designers.
