In an effort to reduce the domestic economic impact of the pandemic, the Argentinian government has published an order that makes all industry with annual revenue above US$ 41 Million to produce at full capacity. If not, they will be fined.
Source: Automotive Business Read The Article
PSR Analysis: As the Argentinian government sees a shortage of industrial products and related price escalation, it identifies reduced OEM production as the main cause of these shortages. However, it underestimates the effects of supply chain constraints and even labor constraints caused by the pandemic.
We do not believe the decree will result in higher production, and we believe the order will be reviewed in a short time. Meanwhile, this is an issue companies will have to deal with, including the over planning it should result. PSR
Fabio Ferraresi is Director-Business Development, South America, for Power Systems Research
Fabio Ferraresi is Managing Director, South America at Power Systems Research, where he leads regional market intelligence, consulting activities, and business development across multiple equipment segments. He holds a Bachelor’s degree in Mechanical Engineering from the University of São Paulo (USP) and an MBA in Business Management from FGV and Ohio University. Fabio also holds Six Sigma Black Belt, CMQ-OE and CQE certifications from the American Society for Quality.
Prior to joining PSR in 2014, Fabio spent 13 years at Eaton Corporation in Brazil and China, where he held leadership roles including supplier development manager, supply chain manager, factory manager, and quality manager. His experience spans the automotive and industrial sectors across South America and Asia. He also serves as director at Grupo Engenho, a consulting firm focused on operational excellence and business transformation and volunteers on key committees of SAE Brazil and AEA, nonprofit organizations that support the development of policies related to the products PSR covers.
