Investments in machinery and equipment fall

2023-06-09 16:38:56

Information up to the month of April, from the ABIMAQ economic indicators research, point to the continued deceleration of investments in machinery and equipment in Brazil. After an increase of 25.5% in March compared to February, or 4.1% seasonally adjusted, the month of April registered a decrease of 19.2% (-8.1% seasonally adjusted), intensifying the Year-to-date decline in 2023 to 6.5% (compared to 5.2% in March 2023).

Compared to the same month of 2022, there was a 10.5% decrease in net revenue from machinery and equipment, marking the 11th consecutive drop in this type of comparison. According to data presented in the report published by the Brazilian Machinery and Equipment Industry Association (Abimaq) in March this year, the performance of the machinery and equipment industry in January 2023 showed a reduction of 6.4% compared to January 2022 On the other hand, in the segment of imports of machinery and equipment, there was a decrease of 4.1% in January when compared to the previous month.

Still on the data released by the Brazilian Association of Machinery and Equipment Industry (Abimaq), the information indicates a reduction of 7.8% in the net sales revenue of the national industry of equipment and machinery in February this year, compared to the same month of the previous year. The amount of sales recorded was R$ 21.76 billion, representing the ninth consecutive decrease in this segment. In the first two-month period, the sector recorded a drop of 7.1%. However, compared to the previous month, there was an increase of 7%. As disclosed by the Abimaq, following a decrease of 2% in January, the sector presented a recovery of 2.7% in the occupation of the total installed capacity in February, reaching 77.6% of its maximum capacity. Despite this recovery, the sector’s capacity is still 2% below the level recorded in 2022 (79.2%).

Despite the performance recorded at the beginning of 2023, the projections for this year in the field of sales of devices, machinery and equipment for construction are positive. The analysis of the rental and sale of equipment segment for the civil construction industry revealed a period of rehabilitation and growth, with the potential to increase sales throughout 2023. 17th Sobratema Study of the Brazilian Construction Equipment Marketconducted by the Brazilian Association of Technology for Construction and Mining (Sobratema), forecasts an increase of around 4% in sales throughout the year, both for the “yellow line” category machinery branch and for the global sector of equipment destined the construction.

According to the report released by Abimaq, the foreign sales segment of the equipment and machinery industry surpassed the US$ 1 billion mark in February 2023. According to the data provided, these amounts are more common, and only in 2022 there were eight months in which exports presented similar results. This outcome strengthens the positive moment experienced by the export division of the equipment and machinery industry, results of this magnitude had only been observed previously in 2012. This upward trend is not limited to financial aspects and is also manifested when we analyze the volume of exported goods.

According to José Antônio Valente, director of the machine leasing Trans Obra, the current situation requires following the planning according to the favorable perspectives outlined for 2023, in order to meet the demands of the civil construction sector. “Despite the drop in investments dedicated to machinery and equipment, the industry must remain focused on the quality of the products offered, whether for sale of large and small equipment, as well as the rental of all the equipment necessary for the proper functioning of the entire industry process. As in the case of Concrete polisher and smoother hire, water pumps, hoses or concrete mixers. The engagement of all work teams, added to the quality of products and services offered, must be a priority among companies in the sector to overcome any negative impact of the fall in investments and results in the sector at the beginning of 2023”.

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