Argentine industrial SMEs face rising payment delays and production drops

Argentine industrial small and medium-sized enterprises (SMEs) are facing a severe financial crisis, characterized by a doubling of payment delays and a significant drop in production. According to reports from the Fundación Observatorio PyME (FOP), 24% of industrial SMEs recorded at least one payment delay during the second quarter of 2026, up from 12% in the same period of 2025.

This tension in the payment chain is driven by a sharp decline in domestic demand, which affects 81% of firms. Consequently, 62% of SMEs reported that customers are taking longer to pay. Delays have also increased in other areas: tax payment defaults rose to 17.3%, supplier payments to 15.3%, and bank obligations to 8.6%.

The industrial sector is also seeing a contraction in output and employment. Production fell 11% year-on-year, reaching its lowest level in seven years. Employment has declined for 14 consecutive quarters, with a 4.5% annual decrease. In response, the organization Industriales PyMEs Argentinos (IPA) has called for a productive emergency law to prevent further business closures and job losses.