Anuário da Indústria de Implementos Rodoviários 2021

60 A lbeit amid an unprecedented health crisis, certain scenarios in 2021 are encouraging for the road implement sector. While demand from large customers is strong, production has become more expensive and complex. In farming, recent estimates by the National Supply Company (CONAB) point to another bumper harvest. It forecasts production of over 272 million tons of grain, 6% up on the 2019/2020 season. Machinery is becoming more efficient, and the planted area will be expanded by more than 68 million hectares, 3.6% up year on year. Ports will handle a record 86.1 million tons of grain, up by 3.7%, mainly driven by soybeans. The mining sector plans investment of $ 34 billion in Brazil by 2024, says the Brazilian Mining Institute (IBRAM), representing companies responsible for 85% of Brazil’s mining output. The forecasts show that after growth of more than 2.5% to one billion tons in 2020, better performance is expected with the recovery of the domestic and international economies. In construction, recovery promises to continue. Data from the Brazilian Construction Industry Chamber show a 6.4% increase in the number of people employed, to more than 138,000. The sector expects 4% growth in GDP in 2021, which, if confirmed, will be the most significant increase since 2013. This is expected to create more than 150,000 jobs. The pandemic has changed habits and leveraged the distribution of urban cargo. After 68% growth in 2020, e-commerce expects 26% more growth in 2021, to turnover of around R$ 110 billion, according to an Ebit/ Nielsen survey. Analysts say 2021 will be a year of growth for the implement industry, mainly for agribusiness, which shows signs that it will continue to expand. The outlook is also good for concessions, which will require more than R$ 10 billion investment in infrastructure. Added to this is online commerce, which is here to stay and helps maintain volumes of both semi- trailers, transporting goods from factories to distribution centers, and bodies on chassis, for distribution. According to Rogério Mallmann, executive director of the Brazilian Association of Rodofort Distributors (Abrafort), the opportunities envisioned in 2021 promise growth of around 10% in heavy implement sales to about 72,000 units. “We are planning for good sales in bulk lines, tippers, and siders, and more modest orders because of seasonality for the timber and sugarcane sectors. But this year will see pent-up demand for industrial cargo,” says Mallmann. However, the scenario that initially seemed favorable may become the biggest challenge for the implement industry in 2021. While demand in various economic sectors has been strong, the pandemic has hampered global supply logistics. Production chains have faced delays in the delivery of inputs and increased costs of raw materials, which may put manufacturers out of business. Some analysts fear that the second half of 2021 could be worse than the first if rising prices are transferred to consumers and transport companies lose trade. In any case, the order books for the implement industry in the first half of the year are almost full. It remains to be seen whether, later on, the sector will be able to cover high costs and protect profitability. Growth amid global adversity The implement industry is on the up but facing increased costs and logistical obstacles in the production chain NEGÓCIOS | BUSINESS | NEGÓCIOS