Increase in the price of raw materials affects the operation of the manufacturing sector: Caintra

Monterrey, NL. The manufacture Nuevo León shows a recovery in its performance indicators, except for imports; However, it faces rising raw material prices, logistics problems, and a shortage of trained personnel.

This is indicated by the survey of Economic Expectations of Manufacturing, of the Chamber of the State Transformation Industry (Caintra).

The physical volume of production and new orders increased in October reaching 54.1 and 52.1 points respectively, with nine consecutive months in the expansion zone, indicates the survey where 113 companies were consulted, from November 5 to 17, 2021.

Meanwhile, the number of workers managed to be above the score obtained in June, with 52.23 points and has remained in the expansion zone during the last five months.

For its part, in foreign trade, exports managed to be above the expansion level by 51.6 points; however, imports continue to contract and have not been able to recover for 5 months, standing at 49.7 points.

Contrary to the expansion that occurs in most indices, the percentage of entrepreneurs who made an investment in machinery, equipment or construction contracted, going from 31% in September to 25% in October.

Obstacles

Regarding the factors that hampered the performance of companies, the price index of raw materials continues to be the highest among the indicators in the expansion zone, with 70.3 points, as well as the price of final products with 58.6 points.

Proof of this is that for the surveyed industrialists, the main problem they face is the increase in the price of the raw Materials, mentioned by 52.2% of companies.

A weak economic activity is another of the concerns that are shown, since they affected 38.9% of the companies. In addition, the political panorama continues to be a factor that worries the industry, being an option selected by 36.6 percent.

The percentage of entrepreneurs who see transport logistics as an obstacle grew, from 19.8% in September to 31.9% in October.

This situation is in line with what happened internationally with freight transport. In the same situation there is a shortage of trained staff, which rose from 20.7% to 26.5% from one month to another, putting pressure on the operations of the companies, concluded Caintra.