COVID-19 weakens Queretaro’s mold and die industry

COVID-19 weakens Queretaro’s mold and die industry

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QUERETARO — The mold and die industry is one of the productive sectors vulnerable to the economic effects of the Covid-19 pandemic, derived from the technical stoppages in which the automotive industry is located, both sectors with a wide presence in the entity.

Of at least 500 companies identified by the Mexican Association of Mold and Die Manufacturing (AMMMT) in the country, 70% show a weakening due to manufacturing stoppages, said the president of the AMMMT, Eduardo Medrano.

“Right now almost 70% of the sector is in a fragile condition, since many of them depended on the automotive industry and some on the plastics industry in non-essential areas, we must remember that they are small and medium-sized companies ( …) Under this perspective, even though it is a high value-added operation, stopping for a month has already determined that there is an impact in approximately 70% of the sector that is having a vulnerable situation, ”he explained.

To survive the impact of Covid-19, the AMMMT proposes two alternatives: promptly enter companies into supply chains with essential segments, as well as generate new work schemes hand in hand with state and federal governments.

The mold and die industry employs between 2,000 and 2,500 people in the entity, according to the president of the AMMMT; until 2018, 47 companies in this branch were counted in the state.

In the last year, the secondary activities of the state have shown descending indicators, since in the period January-September of 2019, they registered a fall of 0.9%, preceding an advance of 2.6% in the first quarter of 2019, as well as setbacks of -2.8% in the second quarter and          -2.5% in the third quarter, according to the Quarterly Indicator of State Economic Activity (ITAEE), presented by the National Institute of Statistics and Geography (Inegi).

Manufacturing industries generate 194,846 jobs, which represents 23% of the total employed population in the state and which amounts to 845,960 people, according to the Inegi's National Survey of Occupation and Employment (Enoe).

Source: El Economista