61% of the most successful Argentine firms in technology are exporters. Their preponderance is declining in relation to those with less technological absorption, whose status is far from integrating into the Fourth Industrial Revolution, says the report by the IDB, the Center for the Implementation of Public Policies for Equity and Growth (Cippec) and the Argentine Industrial Union (UIA), released this Wednesday (19.06.2019).
In order to determine the degree of penetration of new technologies and the current and expected impact on the demand for labor in the Argentine industry, the study investigated, through a survey, 307 companies in the processed food, steel and metalworking, light vehicles and parts and accessories, textile, agricultural machinery and biopharma sectors.
Among the conclusions, it is clear that exporting companies are closer to reaching the top of the Fourth Industrial Revolution. 61% of the firms belonging to the most technologically advanced group are exporters. However, the preponderance of exporters declines with the groups with the lowest technological absorption: 45% of the firms in the intermediate group and 23% of the least technologically advanced are exporters.
Exporters are also the companies that place the greatest emphasis on STEM (Science, Technology, Engineering and Mathematics) skills: 60% of exporting firms expect STEM skills to be very important in five years, compared to only 37% of non-exporting firms.
Technological skills by business branch
It is noted that light vehicle, parts and accessories, steel and metalworking companies generally show a greater demand for technological skills, In particular, they place importance on 3D printing, advanced robotics and artificial intelligence. In contrast, the textile and processed food sectors reflect a generally low demand for skills linked to most new technologies.
In particular, it is said that 62% of exporting companies give relevance to cybersecurity against only 28% of companies that do not export.Exporters often have to deal with greater volumes of information, as well as having to comply with data protection regulations in other markets. They may also be more aware of the cost of the growing threat to data security globally.
Exporting companies, in turn, consider knowledge of new technologies to be more important for hiring staff than the rest. They also have significantly less negative expectations regarding staff reductions as a result of automation in the next five years.
Obstacles to progress
Lack of access to financing is the main problem for the technological progress of Argentine companies, the research points out.
However, the document clarifies that in the case of the most technologically advanced companies, factors strictly external to the firm, such as inadequate digital infrastructure and regulatory frameworks, are the main obstacles to development, which cannot be overcome by private actions.
For less advanced companies, however, barriers that are internal to the firm, such as company culture and lack of knowledge of technology, become more important.
Industry 4.0 in Argentina and Brazil
The path towards Industry 4.0 in Argentina and Brazil is just beginning. The use of advanced technologies in foundational areas is 2% in Argentina and 1,6% in Brazil.
The analysis of the surveys in Argentina and Brazil reveals three important messages. The first is that 4.0 technologies are still in marginal use among both Argentine and Brazilian industrial firms: in no functional area does the percentage of firms with this type of technology exceed 4%.
The second is that there is a vast majority percentage in both countries of firms using first and second generation technologies: 86% of Argentine firms and 78% of Brazilian firms.
The third is that in both countries, proportionally few companies are currently taking action to climb to the top of the 4.0 ladder; less than 20% of companies in Brazil and 7% in Argentina are taking action in any of the functional areas studied.
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