Brazil Gearing Up for 2005

The Brazilian industries plan to invest more in 2005. According to a research disclosed October 26 by the National Confederation of Industries (CNI), 94% of the large companies and 82% of the small and medium sized companies have the intention of investing in the following year.

The research was carried out in the third quarter of the year with 1,224 companies in the whole country. In the study carried out in 2003, the percentages of companies with the intention of investing in 2004 were, respectively, of 86% and 80%.


According to the research, 62% of the large companies and 57% of the small and medium sized companies signalled they have the intention of investing to increase production.


In second and third place in the priorities list are improving the quality of the products and launching new products.


The research shows that the investments will be made, preferably, to meet the increase in demand in the domestic market.


However, 40% of the large companies and 20% of the small and medium companies indicated their intentions of investing to meet both internal and external markets.


Furthermore, 20% of the large and 10% of the small and medium companies declared they wish to invest exclusively, or preferably, to meet external demands.


Although 80% of the companies informed their current production capacity is adequate to meet the estimated demand for 2005, the perspectives of inadequacy to produce more increased.


According to CNI, 18.6% of the large and 21.6% of the small and medium companies declared to have inadequate capacity to meet the demands in 2005.


In the previous year research the percentages were, respectively, of 10.9% and 18%.


The segments in greater need of investment to overcome such deficiency, according to CNI, are the iron works, transport materials, leathers and furs and pharmaceutical products.


At the other end, the sectors showing greatest production capacity adequacy index are plastic materials, clothing and shoes, and paper and cardboard.


The purchase of machinery and equipment was pointed out as the main investment item in 2005. According to the study, 40% of the companies declared their intentions of investing in capital assets, as opposed to 30% in the research carried out in 2003.


ANBA ”“ Brazil-Arab News Agency

Tags:

Ads

You May Also Like

For UN LatAm’s Had Worst Export Decline Since 1937. Brazil’s Drop: 22%

Latin America and the Caribbean exports should decrease by 24% in 2009 compared with ...

Operation Anti-Corruption in Brazil Leads to More than 1000 Arrests

Brazil’s Minister of Justice, Márcio Thomaz Bastos, defended political reform for the sake of ...

The Filhos de Sepé community in the south of Brazil raises rice and fish

Brazilian Landless Escape Big Farmers to Fall Prey of Multinationals

"Breaking down the fences of the large estates was not as difficult as fighting ...

Uruguay Hoping It Will Reach Deal with Brazil on Itaipu at Mercosur’s Summit

Mercosur's presidential summit this week in Paraguay will convene eight South American leaders, announced ...

Brazil Increases Pork Exports by 32%. Russia Remains Main Market.

Brazilian pork exports yielded US$ 101.5 million during September, which represented an increase in ...

Farewell to a Titan

Brazil’s pop-rock scene suffers a severe blow with the tragic death of Marcelo Frommer, ...

More Brazilians (66%) Wear Condom at First Intercourse

The use of condoms during the first intercourse has increased among Brazilians, from 1998 ...

Best-seller Books, Plays and Movies

By Brazzil Magazine RIO Se Correr o Bicho Pega, Se Ficar o Bicho Come(If ...

No Yes-Man Anymore

After 100 years playing a subordinate role to the United States, Brazil, under Lula, ...

With IAEA Blessings, Brazil Starts Uranium Enrichment

In the second half of December, the testing phase should begin for the enrichment ...