Industry in Argentina is highly developed and diversified. Argentine workers are skilled and educated, but recently labor costs have exceeded increases in production. As a result, many industries are no longer profitable since foreign manufacturers are able to produce the same items at a much lower cost due to their lower labor costs. Efforts to reform the nation's labor system by reducing the corruption of some unions have been unsuccessful. In addition, high interest rates, currently about 15 percent, make it difficult for domestic companies to get loans in order to restructure their operations.
Nonetheless, many industries, including the chemical sector and energy production, remain profitable and have experienced growth. Argentina's geographic position allows it easy access to markets in Brazil and surrounding nations, and the country's rich natural resources provide the basis for continued expansions in certain industries.
Primary Industry
Argentina is rich in natural resources with a geological and climatic situation particularly suitable for developing forestry, agriculture, mining and fisheries. It also boasts of large petroleum, gas and uranium reserves.
Agriculture: Argentina is famous for its agricultural production.
With over 54 million head of cattle, Argentina's beef is renowned around the world. Annual production of cereals and oilseeds exceeds 70 million tonnes, which makes Argentina one of the main exporters of these products and their derivatives. One of the country's largest sheep grazing regions, which is also one of the largest regions for growing fruit and vegetables, is found in Patagonia, in the south. The typical farms associated with this production are surprisingly similar to those found in Australia.
Mendoza on the western border is the center of wine production. Argentina is the worlds fifth-largest producer of wine. Most Argentineans drink wine with every meal, a traditional custom introduced by the European immigration.
Exports are continually growing,
Mining: The Andean Mountains provide Argentina with rich mineral deposits. Some of the minerals which are being mined at present are, copper, tin, lead, zinc, gold, silver, and uranium. The main exploitation of copper and gold, Minera de la Alumbrera, in the Province of Catamarca, is an Australian venture.
Gas and Oil: are important resources being increasingly exported to the neighbouring countries and to the world market. Together with mining products they make out for 15% of total exports.
Manufacturing Sector
The industrial sector includes manufacturing and construction. Among Argentina's manufactured goods are processed food, textiles, clothing, metallic and non-metallic mineral products, wood products, paper, pharmaceutical products, chemicals and petrochemical products, aluminium, steel, cars, electrical machinery and appliances, machine tools, turbines, cranes, agriculture machinery, and space and nuclear products.
Construction, engineering and consultancy activities have developed to an important stage, extending to the Latin-American market and other countries.
