OUR THOUGHTS ON:

Manufacturing Opportunities in Brazil

International|Manufacturing

By Mary Richter

Over the past five years, Brazil has become one of the world’s most stable economies. The country remained mostly unaffected by the global banking crises in the U.S. and Europe. Although Brazil’s production levels have recently declined, economists expect that its economy will remain relatively strong, at least through the 2016 Olympic Games. Its major industries include iron and steel production, automobile assembly, petroleum processing, chemicals production, and cement making. Technological-based industries have been the most dynamic in recent years, but have not outpaced traditional industries.

While most of us remember that Brazil was once a hyperinflationary economy, in 2012 Brazil’s inflation and unemployment rates were both less than 6%. Like China, Brazil has been known to employ certain protectionist measures. Its governmental systems can be bureaucratic and time-consuming to navigate. And, just as it is when working in many other foreign countries, it is important for U.S. companies to have a good local partner or manager in place.

Additionally, the growth of the past 15 years has left the country with a large middle class more than 50% of the population. Stated another way, there are a 100 million consumers in Brazil. And they want goods. Despite the large consumer base, foreign goods are not always readily available. Brazil has imposed high tariffs on imports 20% or more of the product cost. For many foreign companies, this has enticed them to move some manufacturing and assembly operations to Brazil.

Can your company take advantage of this opportunity?

Fast Facts:

Brazil has/is: 

  • largest aerospace power of the southern hemisphere
  • lhe largest fixed-line telephone system in Latin America
  • 3rd-biggest aircraft industry in the world
  • 3rd-biggest steel-making power in the world
  • 3rd-biggest computer market in the world
  • 4th-biggest TV network in the world
  • 5th-biggest mobile telephone market in the world
  • 7th-biggest car manufacturer in the world
  • 8th-biggest oil power in the world
  • 10th-biggest producer of capital goods in the world

Source:  http://www.nationsencyclopedia.com/Americas/Brazil-INDUSTRY.html#ixzz2brkNyXXD

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© 2018 Schneider Downs. All rights-reserved. All content on this site is property of Schneider Downs unless otherwise noted and should not be used without written permission.

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