Machinery Industry Grows for the Second Consecutive Year

The machinery and equipment industry yielded, for the second consecutive year, good results despite the pandemic. According to the executive president of the Brazilian Association of Machinery and Equipment (Abimaq), José Velloso, gross earnings had grown 23.9% until November, reaching the R$ 204.20 billion figure. In 12 months, revenue rose 24.8%.

The expectation is that this pace will continue throughout December, and 2021 should come to a close with a 24% growth in the sector. According to data from Abimaq, sales on the domestic market totaled R$ 156.28 billion in the first eleven months of 2021, an increase of 28.9%. In 12 months, the growth was 30.3%, according to Velloso.

“What pushed the machinery industry’s total revenue forward was, precisely, domestic demand.  With the current price of dollars, importing items gets more expensive and, thus, the nationalization of equipment becomes a better deal.”

Velloso pointed out that the share of imported machinery and equipment went from 55% in 2019 to 45% this year. Until November, according to the data, the index totaled US$ 284.03 billion, equaling an increase of 16.3%. In 12 months, the growth was 17.8% according to Abimaq.

If the dollar made imported products more expensive in the country, nationally-produced machinery and equipment became cheaper in the eyes of international consumers. Exports increased 32.7% from January to November this year and reached the milestone of US$ 8.28 billion. In 12 months, foreign sales grew 29.4%. “Performance was good, but at a low pace, as exports declined in 2020 due to the pandemic,” said Velloso.

The estimate for 2022 is for a slowdown, but still yielding good results comparatively speaking. “We may grow nearly 5% in 2022. A performance that is driven by agriculture, commodities, and infrastructure,” he said. “These are the sectors that shall remain strong next year, despite adjustments. This drives the sale of machinery and equipment up. Our growth vectors will continue to be satisfactory”, emphasized Velloso.

Source: Valor Econômico

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https://valor.globo.com/empresas/noticia/2021/12/23/setor-de-maquinas-cresce-pelo-segundo-ano-consecutivo.ghtml

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