Argentina's Metalworking Output Falls as Machine Idleness Hits Lowest September Since 2016

Overview

• The ADIMRA monthly report published Monday shows metalworking production fell 3.3% year on year in September and is down 5.3% through the first nine months of 2026.
• Capacity utilization dropped to 40.2% in September, which means about six of every ten machines stand idle and marks the weakest September reading since the series began in 2016.
• Most metal branches recorded declines in September, led by foundry output down 8.8% and bodies/trailers down 7.6%, while autoparts was a modest outlier with 1.9% growth.
• Employment in the sector fell 1.9% year on year and 45.2% of firms told ADIMRA they do not expect to raise production in the next quarter, citing weak domestic demand, delayed investments, tight financing and import competition.
• ADIMRA president Elio Del Re warned that if projects under the Régimen de Incentivo para Grandes Inversiones do not use domestic suppliers, Argentina will waste available productive capacity and miss an opportunity to boost orders and preserve industrial jobs.