Overview
- The Fundación Pro Tejer report published in November 2026 finds textile production down about 33.8% versus 2023 and 9.4% in August 2026, extending 14 months of year‑on‑year falls.
- Between December 2023 and July 2026 the sector lost roughly 28,818 registered jobs and about 1,090 firms, accounting for a large share of industrial job losses in Argentina.
- Factory use has collapsed, with capacity utilization averaging about 40.6% in Jan–Aug 2026 and falling to 44.6% in August, while six of every ten textile machines sit idle in many plants.
- Domestic supply has been replaced by imports that now meet roughly 70% of the local market, and finished‑garment imports rose sharply in 2026 (about +46% by tonnes in the first nine months).
- Pro Tejer links the downturn to lost household buying power and falling real wages, which have cut retail clothing sales and pushed investment in sector machinery to one of its lowest levels in recent years, raising the risk of lasting deindustrialization and more job losses.