The machinery and equipment industry is likely to increase investments in Brazil this year, with injections estimated at R$15.45 billion. José Velloso, head of the Brazilian Machine and Equipment Industry Association (Abimaq), said the funds are needed to support revenue growth in 2022, estimated at 6%.
“Last year, we invested R$14.52 billion, an amount 68% higher than we expected. Not one sector in Brazil has invested and invests as much as machinery and equipment,” said Mr. Velloso.
Most of the resources – 38.2% – will go to technological modernization to increase productivity in factories, according to Mr. Velloso. “Even with market growth, companies are unlikely to prioritize increasing capacity. They seek more efficiency,” he said.
According to Abimaq’s estimates, total net revenue will grow 6% this year. In 2021, the indicator reached R$222.44 billion, up 21.6% year over year. According to the organization, apparent consumption reached R$308.91 billion, up 14.8% from 2020. Internal net revenue, according to Abimaq, grew by 25.3%, reaching R$168.08 billion.
“It was the best year for the sector ever in the country. And we estimate that by 2022 we will grow even more, on a very high base of comparison. And we have several factors that are likely to support this evolution, especially sectors such as infrastructure and construction,” said Mr. Velloso. “Production is expected to grow 4.5% and exports 15.6%. We are very optimistic for this year.”
Last year, machine makers closed with a backlog of 10.8 weeks, up 21.3%. According to Abimaq, with this performance of the Brazilian market, the level of utilization of the installed capacity was 79.2%.
International trade also performed well in 2021. Exports grew 34.2% in 2021, to $9.37 billion, and imports reached $21.16 billion in 2021, up 23.4%.
The level of employment also followed the positive moment of the sector. The manufacturers ended the year with a payroll of 367,500 people, 42,000 more jobs than in 2020. “Our expectation is a 5% increase in the number of jobs this year,” he said.
Source: Valor international