Anuário da Indústria de Implementos Rodoviários 2021

29 is natural that stocks get run down. This forces the market to resume orders, albeit it slowly, to avoid shortages and a consequent loss of market share. But lockdowns and social distancing have disrupted the sector... But they were not impossible to comply with. Member companies sought reliable information from the healthcare system to understand what could be done to resume production in a safe and responsible manner. At the time, ANFIR provided information on all the initiatives taken by its members to rollout for everyone, acting as an extra platform for best and safest practices adopted by the sector. That is, what companies did to make production safe in the pandemic is now widely known. Those that were able to replicate these measures expanded the production base and made it safer. At no point in the crisis did our concern for the well-being of our employees and their families get ignored, and this explains how the provision of information about safe, responsible practices took care of a segment with approximately 140 member companies. So, if I could sum it up, I would say that the message ANFIR sent out to the sector was first and foremost one of hope, even with the sudden collapse in performance. Also, trust in pandemic prevention measures recommended by healthcare authorities and the courage to get through the crisis. What did you first expect for the Brazilian market at the end of 2020, after the chaos in April and May? Did you really believe recovery was possible, as in fact happened? Initially it was a surprise to see the slowdown in the market in a year that we were recovering in. The first two months indicated that the three years of crisis had been left behind. At that time no one could predict that the pandemic would have this crippling effect on the economy, directly affecting operations for the road implement market. The following months saw widespread concern because sales fell. But in August the first signs were seen that the market was retracting at a slower rate and the first slightly more optimistic forecasts were possible. No one at the time thought of closing the year in profit or breaking even, and an overall retraction of 10% was the best news we had. However, month after month, with the gradual and constant recovery in our market, the forecasts improved, in view of the indicators, and it was possible to imagine we would match sales from the year before. Some sectors of industry, after a drastic fall in sales, had to reduce headcount in the second half of 2020. Have implement companies been able to manage this situation better? What do you make of employment in the sector? The road implement industry did not have to take these measures. This is because the sector faced the crisis generated by the pandemic with its industrial and administrative units already adjusted in terms of personnel. These reductions were made after three years of crisis beforehand. So, our operations were already adapted, and few people were laid off. With the gradual recovery in business, companies began hiring. So, while in 2019 we employed 45,000 people, in 2020 we created 500 more jobs, generating income to help support more families. Another difficulty faced in recovery by some sectors was a shortage of inputs and components. Have implements companies come across similar problems? Yes, they struggled to acquire some inputs and components in their supply chains. The important thing to note is that the pandemic has made business relations more united and flexible. The fact that we are all fighting a common issue contributed, and everyone acted as far as they could to solve the problem. Everyone in the supply chain worked to keep recovery going so that there was no shortage of implements for road freight companies. A lot of inputs costs have increased in recent months. What impact has this had on ANFIR members? What should companies do to mitigate these effects? This is a complex and very particular issue for each member company. In general, they should negotiate with their suppliers to achieve a consensus that is good for everyone. It is not in anyone’s interests to abandon quality suppliers or prevent their production partners from profiting from their operations. There must be a healthy relationship between customers and suppliers so that all those involved contribute and can make a profit to keep their operations going. Has the huge devaluation of the Brazilian real against the US dollar had an impact on the implement industry – or will it have? Could exports benefit? Currency devaluation is usually favorable for exports. But the pandemic has disrupted economic activity on a global scale, and this includes international road implement markets. Because it is a new situation for everyone, economic recovery in these markets is essential so that this exchange rate will help our exports. What are ANFIR’s forecasts for the road implement market in 2021? What will have an influence? ANFIR forecasts strong performance in agribusiness in 2021, which is a sector responsible for more than 40% of business in the Heavy Equipment segment. Construction, with the recovery of residential building and infrastructure projects, and consumer goods transport continue to drive sales and. Given this expectation, the road implements industry should grow by between 8% and 10% in 2021. Can you see the sector recovering, and in what timeframe? We can say that in the Heavy Equipment line we have already reached a good level of business, driving GDP