Uncertainty (35%), Falling Sales (28%) Main Complaints of Brazil’s Small Industry

Small industry in Brazil, ice cream factory Brazil's Union of Micro and Small Industries of the State of São Paulo (Simpi) conducted a survey on the impact of the world crisis on micro and small industries based in the state of São Paulo. The conclusion is that 19.8% intend to hire an average of 2.6 employees in the third quarter of 2009.

Out of 1,068 industries surveyed, the majority (61%) has up to nine workers, a size that also prevails (50%) among companies that increased their personnel in the second quarter of 2009 (29.3%), with an average of 2.1 admissions during the period.

The survey was conducted from July 1st to 8, 2009, and interviews were conducted among randomly chosen heads of industries with up to 50 workers in the state of São Paulo. The survey also approached past and forecast dismissals, the production capacity in use and the main uncertainties of businessmen for 2009.

Out of the industries surveyed, 6% intend to dismiss workers in the third quarter of 2009, the majority (57.1%) consisting of companies with 10 to 29 workers, followed by those with up to 9 employees (42.9%).

The result ratifies the trend of decreasing dismissals in the sector, given that 35.3% of the companies surveyed claimed to have dismissed workers in the second quarter of 2009, the majority (51.2%) being companies with up to nine workers, followed by companies with 10 to 29 workers (34.2%).

The survey showed that a significant share of the micro and small industries surveyed were able to either maintain (54.3%) or increase (8.6%) their capacity in use.

Among the obstacles to be faced in the second half this year, the most cited were uncertainty (35.3%) and falling sales (27.6%), followed by credit scarcity (6%) and the tax burden (3.5%). On the other hand, 14.7% are optimistic and reported no expectations of problems for the coming months.

Anba

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