Brazil’s Manufacturing Sector Provides a Global Sourcing Solution
Today, mineral, agricultural and other primary products constitute more than 50 percent of Brazil’s total exports. But that was not always the case. Exports of manufactured goods were once generated higher values than primary and semi-manufactured goods combined. But as its agriculture sector grew, Brazil became one of the world’s leading exporters of soy, sugar, meat, coffee, tobacco, and orange juice. Over the past seven years, the value of commodity exports has quadrupled.
Brazil has a developed and integrated manufacturing sector which grew up under import substitution during the half century from the 1930s. Brazil has the world’s sixth largest economy by nominal GDP and the second biggest industrial sector in the Americas (behind only the USA). Accounting for 28.5 percent of GDP, Brazil’s diverse industries include automobile, petrochemicals, machinery, electronics, cement and construction, aircraft, textiles, food and beverages, mining and consumer durable. With increased economic stability provided by the Plano Real, Brazilian and multinational businesses have invested heavily in new equipment and technology. The owner of a sophisticated technological sector, Brazil develops projects that range from submarines to aircraft and is involved in space research: It is also a pioneer in many fields, including ethanol production
The Brazilian government has implemented a series of measures intended to help weaken the Real against the Dollar and to reduce costs for the country’s manufacturers and exporters.
The government’s goal is to help make Brazilian products more competitive in international markets. So far, the Real has decreased in value by more than 20% in the last 10 months. Rather than view the situation in a negative light, there are positive aspects such as: (1) recent decline in the value of the Reais, perhaps heading to its PPP-weighted value of around R$2.70 to US$1.00, (2) the fact that Brazil’s industries are still operating and public and private efforts to expand opportunities, and (3) the labor and logistics costs in other markets such as China increase the attractiveness of sourcing from Brazil.
There are tens of thousands of large and small Brazilian manufacturers ready to take advantage of this opportunity. An indispensable online source for finding Brazilian exporters and doing business in Brazil is B2Brazil.com. B2Brazil.com is a Brazilian-based online directory of Brazilian companies for business-to-business transactions. The company recently launched B2Brazil.com.br to promote not only Brazilian companies nationally, but also to promote non-Brazilian companies. Companies can now be promoted globally in English via http://www.B2Brazil.comand in Brazil in Portuguese via http://www.B2Brazil.com.br.
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