Engineering sector in Brazil
Mining machinery © Peter Merten / Digital Vision / Getty Imagesl
Brazil is the biggest machinery and equipment manufacturing country in Latin America and the 17th largest in the world. Brazil was the sixth largest importer in 2012 after investing about $ 1.4 billion in this type of purchase.
Brazil exports machinery for the manufacturing industry, including casting equipment, such as furnaces and kilns, which increased from 1.5% (2011) to 3.3 % (2012). The trade deficit from January to October 2012 was U.S. $14.4 billion, 2.1% less than at the same period in 2011.
The mechanical capital goods segment last year increased by 7% and achieved a gross value of R $ 6.5 billion. This result is due to the growth of exports. Surveys revealed that 77% of all machine tools bought in Brazil in 2012 were imported.
Consumption closed 2012 at R$ 94.3 billion, 1.9% higher than 2011. The imports counted for 61.1% of this amount, followed by domestic sales of 23.6% and the production of capital goods with the imported products amounted to 15.3%, reflecting the strong participation of products from other countries.
The machinery and equipment industry is mainly concentrated in the Southeast and South of Brazil. Approximately 80% of the engineering companies are based in São Paulo.
The sector currently employs over 256 thousand people.
Infrastructure and heavy equipment
Automation, hydraulic and pneumatic equipment
Capital goods components
Advanced materials and composites
Getting into the market
UK companies should consider identifying a local partner (representative / distributor) in the Brazil in order to serve the local customers with after sales support and technical assistance. When customer base is well established, then it is recommended to consider setting up locally in order to become more competitive in terms of costs.
Market intelligence is critical when doing business overseas, and UKTI can provide bespoke market research and support during overseas visits though our chargeable Overseas Market Introduction Service (OMIS).
To commission research or for general advice about the market, get in touch with our specialists in country – or contact your local international trade team.
Erika Azevedo, Sector Manager – British Consulate – General; Tel: +55 11 3094 2748; Email: [email protected]
Julie Yang, Assistant Sector Manager – British Consulate – General; Tel: +55 11 3094 2759; Email: [email protected]
UKTI runs a range of events for exporters, including seminars in the UK, trade missions to overseas markets and support for attendance at overseas trade shows.
MECÂNICA (Intl Machinery and Industrial Suppliers Trade Fair)
20 – 24 May 2014
FISPAL TECNOLOGIA (Intl Fair of Industrial Processes & Packaging)
3 – 6 June 2014
FIEE ELÉTRICA (International Electrical, Energy and Automation Industry Trade Fair)
FEIMAFE (Intl Machine Tools and Integrated Manufacturing Systems Trade Fair)