The manufacturing industry is facing a crisis that has not reached its lowest point yet, with all industrial sectors recording negative numbers in March. The recession has impacted the domestic market and reduced consumption, leading to more suspensions and dismissals for small and medium-sized companies. Private employment contracted by 0.5% in March compared to February, resulting in a loss of 58,000 jobs in the first three months of the year.

Industrial SMEs are dealing with a complex scenario, including a decline in production levels and the opening of imports. This sustained collapse in sales has led to direct impacts on employment, with estimates suggesting that 300,000 jobs may be cut by 2024. IPA warned about this situation at a press meeting, presenting their sixth report on their Observatory.

The decline in jobs was more significant in large companies than in SMEs in March, but on a year-on-year basis, SMEs experienced greater declines due to low sales and high inventories. Companies have had to implement measures such as advancing vacations, cutting shifts, and eventually laying off personnel to reduce labor costs.

To minimize the damage caused by this crisis and sustain employment opportunities, it is essential for SMEs to find new ways of adapting to the changing market conditions. This includes developing an industrial plan that will help them navigate through these challenges effectively.