Sunday, August 1

The industry sees the way out of the crisis far: half predict a year with falling profits


The observatory, powered by the Official College of Industrial Engineers of the Valencian Community (IOCV) and Improven, with the support of the Ministry of Economy and the collaboration, among others, of the University of Alicante (UA) and Miguel Hernández University (UMH), has had the record participation of 758 respondents, among industrial engineers, companies, entities and administrations. The study is structured in six large blocks, which go through the economic, social and political environment, infrastructures, environmental sustainability, technological factors of the company, degree of internationalization and financial factors.

The latest report from the Community Industrial Observatory confirms concern regarding employment


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One of the main conclusions is the one that refers to the fact that 50% of those surveyed agree that the margins of their companies will be reduced during the next 12 months, something that they attribute to the situation experienced by the covid and the costs of raw materials and energy.

The report, specifically, reveals that the perception of growth in industrial activity globally in the same period will be moderate. Thus, 32% also believe that there will be negative consequences in employment, 23% in qualified employment, 23% in turnover, 22% in prices and 20% in productivity.

In general, the perception of the economy in the short term is more negative than that of a horizon of three to five years. Around 45% of those surveyed consider that both GDP and employment will evolve upward in the next year, while for a period between 36 and 60 months, the percentage reaches 60%.

As a result of tight margins and the uncertain environment, 32.7% of companies are unable to cope with the digital transformation. Other concerns are financing problems, the level of innovation and added value of the products, the business model, managerial and organizational deficiencies, productivity at work and the size of the company.

The complicated context means that 32% of companies are unable to address digital transformation


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For the dean of COIIV, Salvador Puigdengolas, the results of the report show that «we must focus on promoting those transversal aspects that improve the competitiveness of companies without compromising the future of the next generations, without neglecting strategy and management actions, such as internationalization or financial factors, key to the future of many companies ”.

For his part, Sergio Gordillo, managing partner of Improven, assures that “it is essential that entrepreneurs, managers and professionals have a healthy ambition to gain size, develop a brand, attract talent, invest in innovation, establish themselves internationally and deploy actions of sustainability ».

Criticism of the lack of support from the administrations

The reinforcement of the railroad as a way of industrial interconnection is another requirement that the study includes

The latest report issued by the Industrial Observatory of the Valencian Community collects criticism from those surveyed in relation to what they consider little support from public administrations towards this productive sector. Specifically, 44.5% claim an improvement in aid, development and promotion policies for the industry, as one of the main challenges to face both at the national and regional levels.

In terms of infrastructures, a favorable evolution is perceived. However, and as one of the actions that should be carried out to contain the unfavorable margins, a reinforcement of the railway is requested as a means of industrial interconnection, with the aim of reducing the time used in transport and increasing efficiency also from the point of view of sustainability.

The participants in the observatory identify two problems in terms of technological factors of the company. On the one hand, there is a lack of qualified personnel with skills and background, and on the other, the leaps in quality are limited by the lack of resources to undertake the investments.

The report also identifies other needs, such as the promotion of equality plans, the reinforcement of internationalization strategies and better vertical communication by companies, in order to involve the professionals who work for them in the different Projects.


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