The President of the Chamber of Industrialists of Carabobo, Oswaldo Umanés, stated that the first months of 2023 have been of concern for the industrial and manufacturing sector, as a result of the slowdown in the economy and the drop in sales.
By La Patilla
Mar 1, 2023
Umanés explained that the devaluation and the decrease in purchasing power have resulted in a decrease in demand.
“Many companies did not call their people to rejoin in January, but prolonged holidays, because the warehouses are full, the inventories of finished products are full, because there is a significant drop in sales (…) We have come from two terrible months: in December there was a devaluation of 57%, in January of 23%. The devaluation in the last 60 days has caused a very strong impoverishment, and it has not been possible to recover the income of workers, this has caused demand to fall,” he commented.
He pointed out that another of the problems that affects the growth of industrial activity is the increase in the informal economy, sales without invoices, smuggling and door-to-door imports. He described the latter as unfair competition with products manufactured in Venezuela, which he assured directly threatens employment in the country.
The President of the Chamber of Industrialists of Carabobo indicated that the few industries that continue to operate work between 23% and 25% of their installed capacity. They also face the payment of high taxes and public service bills (utilities).
He denounced that fiscal voracity has affected the cost structure of industrialists. “We have a fiscal voracity that is killing us (…) In the Industrial Zone of Valencia there are companies that are working at 5% of their capacity or are paralyzed, and bills are arriving in the order of 25 or 50 thousand dollars for electrical service. If Hidrocentro (water), Seniat (taxes) is added to this, the tax burden can reach up to 54% of turnover. These are impossible economic burdens that make it necessary to close the shops, but that is the last action you want to take,” he said.
Umanés stressed that it is important to reactivate bank loans for the sector, because the companies that are left are still standing by “own lung” (willpower) of businessmen, investors and the little cash they are generating.
In addition, he asked the authorities to employ policies that make it possible to attack illicit trade.
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