Industry by industry: what are the keys to development in 2022?

During 2021 we met with the main financial leaders to analyze and reflect on the development of the industry in the country . The purpose of these meetings organized by BDO was not only to put purely business issues on the table in line with policies and regulations, but they also served to accompany many business owners and leaders through a period marked by uncertainty .

This annual program resulted in a report that summarizes the main challenges and opportunities of the most important industries.

INDUSTRY BY INDUSTRY

TECHNOLOGY, MEDIA AND TELECOMMUNICATIONS

" Regionalization is an option for both companies and professionals due to the gaps generated by the exchange imbalance and the opportunities of remote work " indicates Luis Romero, Partner and Leader of the BDO Media and Telecommunications Industry .

The telecommunications industry was the best positioned in the pandemic due to its ability to generate transnational flows in the face of unprecedented levels of risk in Argentina. That is why the retention and management of local talent is one of the main challenges of the technology industry .

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However, the acceleration of the digital convergence of the media, the positioning of OTT platforms and streaming services condition the traditional players in the sector. The digital and omnichannel consumer sets the agenda, which leads to increased investments in Data & Analytics and AI by companies.

The reconversion of the business model is a viable option in a scenario of dollarized costs and increased demand for virtuality. Therefore, the packaging and segmentation of services requires a transformation towards the user-centric vision .

ENERGY AND NATURAL RESOURCES

During 2021, there was a recovery in activity to pre-pandemic levels due to the opening policies . However, the direct impact of external restriction measures on key companies for the development of the energy industry must be considered.

Consequently, "it is necessary to achieve a balance between the fiscal deficit-relative prices-inflation combo to generate stability and improve access to foreign investment" summarizes Marcelo Canetti, Partner and Leader of the Energy and Natural Resources Industry at BDO .

Analyzing the impact on the supply chain in order to update current service rates will be essential in the 2022 development plan.

Natural resources such as Vaca Muerta together with agreed medium and long-term policies will strengthen the definitive jump to the international Oil & Gas market . In this sector there is also an unbeatable opportunity for the exploitation of lithium since it is an industry with a higher level of risk than the average. Finally, it is important to build macroeconomic certainty for the continuity of mining projects planned for 10 years.

AGRIBUSINESS AND FISHERIES

Gustavo Barrichi, Partner and Leader of the Agribusiness and Fishing Industry at BDO , identifies the challenges and opportunities of this industry for the coming year, highlighting that it will be necessary to generate opportunities to attract and retain local talent , design new strategies to manage the margins of profitability in the face of increased costs and scarcity of inputs, adapt business models to possible scenarios of export withholdings by product and finally address the climate factor , which will be a key variable that will enhance the levels of structural uncertainty in production.

On the other hand, it highlights that the internationalization of companies will be a viable strategy based on local levels of uncertainty and highlights the importance of being encouraged to open new international markets and incorporate robotization and IoT technology as investments that allow improving production in volume and quality.

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CONSTRUCTION AND REAL ESTATE

Designing flexible listing models that adapt to a scenario of economic instability, a volatile exchange rate and external restrictions will be a challenge on the coming agenda. For this reason, the productive niches will be great allies to take advantage of the potential demand and perfect the links in the production chain .

Fernando Garabato, Leading Partner of the Construction Construction and Real Estate Industry of BDO , details that "the exchange rate , the pesified costs and the reactivation of the work sustain the development of the real estate market. Consequently, the high demand for properties in the peripheries anticipates a new profile of cities and new industrial needs to which we have to respond efficiently".

BANKS AND INSURANCE

The challenges of the industry are focused on generating flexible negotiation schemes in the face of a cost structure determined by economic instability . That is why it is essential to design models of internal and external processes that are easy to adapt to the systematic resolutions imposed .

In addition, it is essential to create links and agreements with emerging digital ecosystems such as Fintech and Insurtech . Promoting the development of new local talent against the salary gaps that remote work makes possible.

Among the opportunities for the sector in 2022, the need to encourage greater investments in innovation and technology to adapt talent, processes and products to the demands of the new client stands out; manage the impact of virtuality on internal and external contact channels by investing in agile technologies and methodologies; and lastly, evaluate strategies in the business model through service segmentation or platformization through alliances with BigTech .

LABORATORIES

In the laboratory industry there is an agenda of interesting challenges . During the next year it will be necessary to create new investment schemes (capex) that add value to the business; build investment alternatives with greater certainty based on the local economic context; lastly, to optimize production processes in scenarios of import restrictions and in the face of price control policies.

While the development opportunities will imply " strengthening its areas of innovation and development through the Knowledge Economy promotion system; designing commercial strategies that take advantage of the recovery of mass consumption levels; Promoting greater investments in automation and digitalization of internal processes through technologies such as Power BI or Robotics ; And generate value through regional expansion", says Fabián Marcote, Partner and Leader of the BDO Laboratory Industry.

IN SUMMARY

Investment in technology continues to be the best opportunity to improve productivity and expand the offer towards an increasingly digital consumer. The impact of virtuality challenges the main industries to manage talent through schemes that adapt to a new organizational culture . Incorporating a sustainable profile in the activity through energy efficiency, environmental certifications or sustainable financing .

Going towards a more technical field, it becomes essential to adapt the quotation models and budgets to possible scenarios of economic instability , identifying opportunities that allow the regionalization of operations to design strategies in scenarios of greater economic certainty .

Likewise, it is recommended to design and implement a new organizational culture through the use of agile methodologies and change management tools, with the aim of attracting, managing and retaining local talent in the face of a wage gap scenario.

The transformation and development of the main industries presents keys, challenges and opportunities to plan a solid growth in the coming year. Taking into account the recommendations of the main references in the sector will also be a challenge for leaders resistant to change.