Blocks in Guatemala cost more than Q300 million daily to the productive sector

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Blocks in Guatemala cost more than Q300 million daily to the productive sector

A preliminary count due to direct and indirect effects on the economy by blockages in the metropolitan area that concentrates the greatest productive activities They leave a negative balance of Q200 million for the industrial sector and some Q130 million in sales not made, for a total of Q330 million every day.

Raúl Bouscayrol, president of the Guatemalan Chamber of Industry (CIG) explained that the interruption of the activities and workday has an impact on the productive system.

He explained that according to An estimated CA-Bi Analytics firm, the country’s productive time has a value of Q130 million. That is, they are Q130 million losses in sales per hour in all productive activities of the country. Of this the industry represents 20%. This means that, on a lock day, for the industry They are more than Q200 million losses in the production chain.

“In other words, In an hour of blockages, the equivalent of approximately 34 thousand minimum wages is lost”, Said the industrial representative.

This Wednesday, it is the second day in which productive activities are paralyzed by impacting producers, buyers, consumers, intermediaries, and the entire macro and micro chain.

Sectorial affectation

Bouscayrol said that blockades not only affect the industrial sector but all citizens in general.

“Industrial, commercial, educational activities and other productive activities were affected. The production and supply chains were affected both by the interruption of the income of raw materials into the factories, and by the impossibility of the workers to reach their jobs,” he said.

In addition, the distribution of the city’s products into the country and other markets was affected. It should be taken into account that these products include foods, medications, surgical medical material for hospitals, among others.

Héctor Fajardo, manager of the Central American Chamber of Transporters (Catransca), emphasized that any blockade that does not allow the mobility of public roads that since yesterday are interrupting terrestrial accesses for the passage of heavy transport, are affecting.

“The country’s productive time has a value of Q130 million. That is, they are Q130 million losses in sales per hour in all productive activities of the country. This represents 20%. This means that, on a day of blockages, for the industry there are more than Q200 million loss in the production chain”

Raúl Bouscayrol, President Cig

“This has an elevation in the cost for transport and affects the fulfillment of the delivery of carriers and entrepreneurs who hire the services for the mobility of the goods that the national economy is affecting the people who need to move. It is an affectation to transport as to the people who have to move,” he said.

Chain interruption

Given the movements in the last 24 hours, the sectors report an interruption in the supply, distribution and consumption chains.

“The entire supply chain was affected, both of production and distribution. It must be considered that the factories have a constant production flow that cannot be interrupted. A certain machinery such as the furnaces and other industrial equipment cannot be turned off and any affectation to the chain has consequences,” said Bouscayrol.

Then, the impacts not only occur in the blockage period, but also have medium and long term impacts, he added.

“The sales that were lost are not managed to recover and this has an economic affectation that transcends blocking days. It is important to consider that these economic losses, added to the logistics cost overrun nonconformities, since they end up affecting all Guatemalans, ”reiterated the president of the CIG.

“This has an elevation in the cost for transport and affects compliance with the delivery of carriers and entrepreneurs who hire the services for the mobility of the goods that the national economy is affecting”

Héctor Fajardo, Catransca representative

The Catransca representative commented that the merchandise transport sector plays an important role in mobility in logistics compliance and the transfer of goods and people, which are not fully carried out by the interruption of the roads.

“We are being affected as an important population area of ​​the country that is the metropolitan area and there are reports outside the capital that is also interruption,” he said.

Food distribution is interrupted

Luis Mazariegos, director of the Guatemalan Chamber of Food and Beverage (CGAB), shared the impact received by that sector. For example, he mentioned that the members were impossible to receive raw material from the southern coast and north coast of the country, resulting in deliveries in deliveries, which took place until the early hours of this Wednesday, March 19.

The distribution of food to stores, markets and supermarkets could not be completed, orCasing lack of supply in some places, which will try to perform today, added the manager.

In addition, he commented that the pilots and routing staff returned to Bodegas after 10 p.m. on Tuesday, March 18 or at dawn on Wednesday, after long days when they were stranded in the blockages.

For this Wednesday, Mazariegos indicated that 30% of the food distribution routes are affected in the department of Guatemala, South West and North Region of the country. Some markets such as Chimaltenango closed their positions this day for fear of disturbances.

Also, 25% of the personnel have not been able to work and another 12% arrived late for production plants and distribution wineries in the department of Guatemala, a lower percentage in the interior of the country.

To all of the above, losses of the sector are added for expenses in fuel, transport and payment of non -productive salaries in addition to unrealized sales that no longer recover, mazariegos emphasized.

Alternatives and teleworking

The consulted were consulted on possible alternate plans and programs to the blockages.

Bouscayrol, said that it is difficult to implement alternatives for industries because they require a constant flow of raw materials and personnel in plants to operate.

In administrative areas it is easier to implement measures such as teleworking, but it is not possible to implement it in the production or distribution areas.

“They have had to make readcations of routes to be able to supply hospitals and neighborhood stores. Above all, we consider that it is important to consider the impacts for the Guatemalans and their families. Pilots had to spend additional hours in traffic, the children had difficulty returning to their homes after leaving the studies and patients could not go to health centers for medical treatments,” said the CIG manager.

He reiterated that the blockages, as we have stated, threaten the rights of all Guatemalans and that is why they are completely inadmissible. We demand that the authorities act according to their mandate to release the blocked roads and that all Guatemalans can return to their daily activities.

Fajardo concluded that as a transport sector, the population has to be explained that insurance has a human sense, but what happens now are injuries and even deaths to cover a compensation or economic support that can be involved in transit acts.

Catering

Enrique Meléndez, Executive Director of the Guatemalan Association of Gasoline Expendors (AGEG) reported that by blockages in different parts of the metropolitan area some service stations had delays in the reception of fuels during Tuesday and Wednesday.

“The blockades impacted the supply chain causing delays, however, no shortage was given in the service stations,” he said.

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