The effect of covid-19 on the profitability of the business fabric in Aragon has been less than expected in 2020 despite the months of confinement and closure of activity that has caused a more pronounced drop in productivity. Companies have been able to weather the situation. Now, they are in better conditions than in 2008 to withstand the current complex economic situation marked by an inflationary context and high costs, especially energy.
And, precisely because of this better situation, the same effects on the business fabric as in 2008 are not expected to occur. “The situation of companies is better than before the 2008 crisis. There were sectors that sank, such as the construction and real estate, and that is not going to work,” says Marcos Sanso, professor of Economic Analysis at the University of Zaragoza, to elEconomista
Sanso explains that “not only the rise in costs will prevent companies from maintaining margins and increasing GDP. The European Central Bank (ECB) adds fuel to the fire to curb demand and increase costs. But companies are in a better position “, Add.
In fact, despite what might initially be thought, the impact of covid-19 on the profitability of companies during 2020 has been less than expected. The latest data from the 2021 economic report that he has prepared for the Basilio Paraíso Foundation of the Chamber of Commerce of Zaragoza and Ibercaja, reflects that the average profitability of companies was 3.6% in Aragon during 2020, the year analyzed as it was the latest available for analysis. In addition, “on average, there is no sector with negative profitability. If this situation was not so unfavorable in 2020” and, pending the data for 2021, “its position is better.”
The profitability of Aragonese companies fell by 0.71 points, going from 4.31% in 2019 to 3.60% in 2020 in the average rate of return. However, despite this decrease, the decline is not important for the great economic problem that the pandemic posed. As indicated in the report “more could be expected, especially when the profitability of the year 2019 was the best of the recovery after the 2008 crisis, which had the first positive value in 2014”.
The positive profitability has been obtained in the companies of the three Aragonese provinces. Huesca continues to be the province with the highest profitability with 5.57% in 2020 compared to 6.31% in 2019, followed by Zaragoza with 3.48% compared to 4.19% in 2019, and Teruel with 1.59% in 2020 and 2.51% in 2019. These data reflect that the pandemic affected the profitability of companies in Teruel more than in Huesca and Zaragoza.
By sectors of activity, it is noteworthy that none of them obtained a negative return in Zaragoza and Huesca, while the situation changed in Teruel in four sectors: textile industry, clothing, leather and footwear with a decrease of 21.78%; manufacture of rubber, plastic and other non-metallic mineral products with a fall of 0.54%; information and communications with a decrease of 1.93% and, finally, artistic, entertainment, repair and other services activities with a decrease of 4.62%.
Looking at Aragon, there are 15 sectors that exceeded the average profitability of 3.6%. Among them, the evolution of coke ovens, petroleum refining, chemical and pharmaceutical industry stands out with an increase in profitability of 18.61%; education with a rise of 18.79% or information and communications with 7.71%.
Agriculture, forestry and fishing, extractive industries, the food, beverage and tobacco industry, the wood, cork, paper and graphic arts, metallurgy and product manufacturing industries were also above average profitability in Aragon. metal, manufacturing of computer, electronic and optical products, furniture manufacturing, supply of electricity, gas, sanitation and waste, commerce, hospitality, professional and administrative activities and auxiliary services and health and social service activities.
Below the average profitability in Aragon were the textile, clothing, leather and footwear industry, manufacture of rubber, plastic and other non-metallic mineral products, manufacture of transport equipment, construction, transport and storage, financial and insurance, real estate activities, and artistic, entertainment, repair, and other service activities.
If we look at the difference between the 2020 rates of return in relation to 2006, it can be seen that, at positive levels, the greatest jump can be seen in information and communications with an increase of 23.13%, followed by coking plants and petroleum refining , chemical industry, manufacturing of pharmaceutical products with a rise of 17.49%.
The comparison also places the rest of the sectors at positive levels in 2020 with the exception of the textile industry, manufacture of rubber products, metallurgy and manufacture of metal products, supply of energy, gas, steam and air conditioning, construction, real estate activities and professional, scientific and technical activities, administrative activities and auxiliary services, as well as artistic, recreational and entertainment activities and repair of household items.
Productivity
However, during the year 2020, productivity did register worse data and, in addition, in the three Aragonese provinces. Specifically, the drop in average productivity at constant prices for the year 2000 stood at 7.88%. A percentage that contrasts with the increase that it experienced in 2019 of 17.56%.
By provinces, under 9.19% in Zaragoza, which had the highest productivity in 2019 with 37.88 thousand euros; 1.31% in Huesca and 5.76% in Teruel. However, the report indicates that it has not been a significant fall, as has happened in profitability.
Looking at the productive sectors, the one with the highest productivity in 2020 continued to be financial and insurance activities, which has maintained its position since 2014, with 151.28 thousand euros, followed by real estate activities with 95.25 thousand euros; coking plants, refining and chemical products with 83.01 thousand euros; wood industry, cork, paper and graphic arts with 70.84 million and extractive industries with 63.96 thousand euros.
The sectors of manufacturing rubber and plastic products and other non-metallic minerals, agri-food industry, manufacturing of computer, electrical and electronic products, manufacturing of transport material and agriculture, livestock and forestry also registered a good level of productivity. All of them, together with the previous ones, exceeded the productivity above the average of Aragon.
On the contrary, the sectors with the lowest productivity during 2020 in Aragon were those of health activities and social services; artistic, recreational and entertainment activities; education; textile industry, garment manufacturing and leather and footwear industry, construction, furniture manufacturing, other manufacturing industries and repair and installation of machinery and equipment, transport and storage, wholesale and retail trade, vehicle repair motor and motorcycles; information and communications; Professional, scientific and technical activities; administrative activities and auxiliary services; metallurgy and manufacture of metal products, except machinery and equipment.
The sample
In the report, public limited companies and limited companies with registered office in Aragon have been taken into account. Specifically, for the year 2020, information from 49,578 companies based in the Aragonese community has been used. Of these, 8.85% are in Teruel, 17.51% in Huesca and 73.64% in Zaragoza. The total added value represented by the companies in the sample is 40.52% of the total GVA of Aragon and 40.48% of total employment in 2020.
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