2024-11-06 19:33:00
The latest data from the National Confederation of Industry (CNI) reveal constant growth in the confidence of entrepreneurs in the construction sector in 2024. Industrial Business Confidence Index (ICEI) reached 53.2 points in October, above the 50-point dividing line, which reveals optimistic expectations from businesspeople for the next six months. This optimism is fueled by the growth in infrastructure works and the increased demand for efficient solutions in the construction sector.
A Construction Industry Surveyreleased in August 2024, already presented this vision, showing that the level of activity and employment in the sector remained stable. The activity level evolution index stood at 49.7 points, with the Infrastructure Works sector standing out by reaching 51.4 points, while Building Construction and Specialized Services presented indexes below 50 points, reflecting a slight slowdown . The evolution index in the number of employees remained at 50.1 points, indicating relative stability in the sector’s labor market.
Still according to this research, the Operational Capacity Utilization (UCO) in the sector increased to 68% in August 2024, with emphasis on the Specialized Services sector, which achieved a UCO of 72%, the highest recorded for the month of August since the beginning of the historical series, in 2012. This increase reflects the greater demand for labor and equipment, reinforcing the relevance of renting tools and machinery for carrying out projects in the sector.
José Antônio Valente, CEO of the franchises Trans Obra, comments that this scenario favors the construction equipment rental sector in Brazil. “Business confidence in the construction industry and the increase in activities in the market have a direct impact on the equipment and tool rental sector”, says Valente.
Os data from ICEI show stability in confidence in the Buildings and Infrastructure Works segments, with the expectations index varying from 53.3 to 53.2 points in October 2024. According to the CNI analysis, this level of confidence is considered positive, as it remains above the 50-point dividing line, indicating that businesspeople maintain a positive level of optimism.
“Understanding How the franchise system worksI see that the confidence maintained in the infrastructure and building construction sectors highlights the need for agile solutions, such as a tool rental franchise”says Valente.
Still on the studies, José Antônio continued saying that based on data from the Construction Industry Survey and ICEI, the current scenario reflects a stability in business confidence and an increasing use of operational capacity in the sector. “These indicators show that the civil construction sector continues to demand efficient solutions to maintain the pace of infrastructure and building projects, reinforcing the importance of closely monitoring market developments to ensure that confidence is maintained in the coming months.”
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**Interview with José Antônio Valente, CEO of Trans Obra**
**Interviewer:** Thank you for joining us today, Mr. Valente. It’s interesting to hear how construction confidence is growing in Brazil. Can you share your thoughts on the recent increase in the Industrial Business Confidence Index?
**José Antônio Valente:** Thank you for having me. The rise in the Industrial Business Confidence Index to 53.2 points in October is indeed noteworthy. It signals a positive outlook among entrepreneurs in the construction sector, driven by ongoing infrastructure projects and a growing demand for efficient building solutions. This optimism is critical as it indicates that businesses are likely to invest more in their operations.
**Interviewer:** It seems that the construction sector is showing promise, particularly in infrastructure works. How do you see this impacting the overall market for construction equipment rental?
**José Antônio Valente:** The increased activity in the infrastructure sector directly benefits the construction equipment rental market. When companies are confident, they tend to expand their operations and require more equipment, which is where we come in. Renting tools and machinery offers flexibility and cost-effectiveness, which is crucial for many construction firms looking to scale up their projects without the hefty upfront costs associated with purchasing.
**Interviewer:** The data also revealed that employment levels in the construction sector remained stable, which is encouraging. How does this stability affect your business?
**José Antônio Valente:** Stability in employment is always a positive sign for our industry. It means that while some areas may be facing slight slowdowns, others, especially infrastructure, are performing well. A stable labor market allows us to plan better for our inventory and equipment needs since we can anticipate sustained demand without drastic fluctuations.
**Interviewer:** You mentioned that the Operational Capacity Utilization in the sector increased. What does this suggest about the future of construction in Brazil?
**José Antônio Valente:** An increase in Operational Capacity Utilization to 68% is a strong indicator of growing demand. Particularly, the Specialized Services sector achieving a capacity of 72% – the highest for August since 2012 – speaks volumes. This suggests that businesses are becoming more efficient and are investing in the necessary tools to meet rising challenges and consumer needs. It’s an encouraging trend that bodes well for the future of construction in Brazil.
**Interviewer:** Thank you, Mr. Valente, for sharing your insights. It certainly sounds like an exciting time for the construction sector in Brazil.
**José Antônio Valente:** Thank you for having me. It is indeed an exciting time, and I am optimistic about what lies ahead for our industry.
