Authors: Albrieu, Ramiro ; Basco, Ana Inés ; Brest López, Caterina ; De Azevedo, Belisario ; Peirano, Fernando ; Rapetti, Martín ; Vienni, Gabriel.
Executive Summary
The ongoing technological transformation is revolutionizing traditional models of production, trade, and integration in Latin America and the Caribbean, reshaping both the structure and dynamics of work. Motivated by this process, this study examines, through a survey of firms from six branches of the Argentine manufacturing industry: (i) the current and expected degree of adoption of new technologies, and (ii) their current and expected impact on labor demand within firms in the sector. The results show that, in terms of technological adoption, Argentina’s journey toward Industry 4.0—much like Brazil’s—is only just beginning.
The main findings are summarized below:
- Early Stage of Technological Transformation: Fewer than 10% of the surveyed industrial firms use fourth-generation technologies in any of their functional areas. There are no fully Industry 4.0 firms. Most companies rely on first- and second-generation technologies.
- Firm Typology: Three groups of firms were identified:
- Condors (6%): technologically advanced firms that are actively adopting new technologies.
- Climbers (45%): firms with intermediate technological capabilities and a strong drive toward the technological frontier.
- Trekkers (49%): technologically lagging firms with no concrete transformation initiatives.
- Future Outlook: Nearly half of the firms expect to make a significant technological leap over the next ten years. However, six out of ten are not currently taking any action to bring about that change.
- Comparison with Brazil: Both countries exhibit low adoption of Industry 4.0 technologies. However, Brazil has a higher share of firms using third-generation technologies, particularly in outward-facing functional areas such as customer and supplier relations.
- Factors Associated with Technological Advancement:
- More technologically advanced firms tend to be larger, export-oriented, and characterized by higher levels of investment in R&D and fixed capital.
- Exporting firms also anticipate greater future demand for STEM skills (Science, Technology, Engineering, and Mathematics).
- Main Barriers:
- For the most advanced firms: external constraints, such as inadequate digital infrastructure and unsuitable regulatory frameworks.
- For the most lagging firms: internal barriers, including organizational culture and limited technological awareness.
- Access to financing is a cross-cutting obstacle affecting firms across all groups.
- Demand for Skills:
- Soft skills (teamwork, communication, and adaptability) are currently the most valued competencies.
- STEM skills are not highly demanded today, but a substantial increase in demand is expected over the next five years.
- Impact of Automation on Employment:
- The automation process has had a balanced impact on employment: more firms increased employment (22%) than reduced it (19%).
- The most technologically advanced firms experienced employment growth, while the most lagging firms tended to reduce their workforce.
- The impact is more negative for repetitive tasks, but neutral or positive for cognitive and relational tasks.
- Inclusion and Automation: Inclusive technological adoption—defined as technological upgrading accompanied by job creation—is more common among young, innovative, export-oriented firms with active technology strategies, regardless of their size.