Industry in Brazil
Brazilian industry has its earliest origin in
There were twenty establishments that could be considered in fact
The advent of manufacturing before the 1840s was extremely limited, due to the self-sufficiency of the rural regions, where farms producing coffee and sugar cane also produced their own food, clothes, equipment, etc., the lack of capital, and high costs of production that made it impossible for Brazilian manufacturers to compete with foreign products. Costs were high because most raw materials were imported, even though some of the plants already used machines.[3]
From a colony whose aim was to export primary goods (sugar, gold and cotton), Brazil has managed to create a diversified industrial base in the 20th century. The steel industry is a prime example of that, with Brazil being the 9th largest producer of steel in 2018,
1840s–1860s
The promulgation of the Alves Branco Tariff modified this picture. This tariff succeeded in increasing state revenues and stimulating the growth of national industry.[7][8] The sudden proliferation of capital was directed to investments in urban services, transports, commerce, banks, industries, etc.[9] Most of the capital invested in industry was directed toward textiles.[10] With unprecedented industrial growth, multiple manufacturing establishments appeared, dedicated to such diverse products as smelting of iron and metal, machinery, soap and candles, glasses, beer, vinegar, gallons of gold and silver, shoes, hats and cotton fabric.[11]
One of the main establishments created at this period was the metallurgical factory Ponta da Areia (in English: Sand Tip), in the city of Niterói, that also constructed steamships.[12] It is likely that the textile industry benefited most by the virtue of being the oldest in the country. It first appeared in 1826, in the city of Recife, capital of the province of Pernambuco.[13] The textile sector was quite dynamic in the monarchic period and received large investments until 1890, when it entered into decline. Various modernizations occurred, principally between 1840 and 1860, when factories with a high level of technological capability were created, able to compete with other major international centers. Other improvements came with the establishment of factories and forges geared for the production of equipment and pieces for textile manufacture.[14] And now Brazil ranks second in the world's largest producer of denim, the third – for the production of knitted fabrics, the fifth – for the manufacture of clothing and seventh – for the production of yarns and fibers.[citation needed] The concentration of industry that emerged in the province of Bahia considerably expanded its economic scope, reaching the south of Ceará, Piauí and even Minas Gerais.[15]
The extinction of the traffic in African slaves in 1850, contrary to what many authors allege, did not "liberate" credit for industrial development. That claim has no documentary basis whatever.[16] On the contrary, capital employed in the trade had already been directed to sectors such as enterprises of urban services, transport, banking and trade. But it is possible that there was an indirect contribution to the growth of the industrial sector through banking loans.[17] In 1850, there were 50 factories with a capital of at least Rs 7.000:000$000.[18]
The imperial government created several incentives for the industrialization of the country. The earliest of these date from the reign of
The goal, then, was not only the transition from the old colonial economic system to that of the modern capitalist, but also from slave labor to free. Other incentives arose, such as the decree of 8 August 1846 that exempted manufactured products from certain transport taxes (internally as well as externally), shielded from military recruitment a specific number of employees of industrial establishments and eliminated tariffs on parts and machinery imported for textile factories. The following year in June, a new decree stated that all industrial establishments on national soil would be free of taxes on imported raw materials.
1860s–1880s
At the end of the 1860s, came a new industrial surge caused by two armed conflicts: the American Civil War and the Paraguayan War. U.S. production of cotton was interrupted by the blockade by Union forces of the Confederacy. The second resulted in the emission of currency and an increase in import tariffs to cover the costs of war. This resulted in a great stimulus not only for the textile industry, but also for other sectors, such as chemicals, cigars, glass, paper, leather, and optical and nautical instruments.[16]
During the 1870s, the decline of the coffee region of the Paraíba Valley and in some areas of sugar production, caused many plantation owners to invest not only in the cotton textile industry, but also in other manufacturing sectors. Deployment of a railway network throughout the national territory also stimulated the emergence of new industrial activities, mainly in São Paulo.[24] Industry experienced a major impetus in this period. From the 1870s onward, the great expansion of industrialization became a constant in Brazil.[25] In 1866, there were nine textile factories with 795 workers.[26] In 1881, there were 46 textile factories through the country: 12 in Bahia; 11 in Rio de Janeiro; nine in São Paulo; nine in Minas Gerais; and five in other provinces.[27] The number of establishments diminished a little by 1885 to 42 textile factories with 3,172 workers. However, the drop did not impede overall growth in the sector up to 1889.[26]
In 1880 the Industrial Association was established, with its first board elected the following year. It supported new industrial incentives and propagandized against the defenders of an essentially agricultural Brazil.
Brazilian industrial sector
Most large industry is concentrated in the south and south east. The north east is traditionally the poorest part of Brazil, but it is beginning to attract new investment.
Brazil has the third best advanced industrial sector in
Brazil has a diverse and sophisticated services industry as well. During the early 1990s, the banking sector accounted for as much as 16% of GDP. Although undergoing a major overhaul, Brazil's financial services industry provides local businesses with a wide range of products and is attracting numerous new entrants, including U.S. financial firms. The
In 2019, Brazil's secondary (industrial) sector represented only 11% of Brazil's economic activity. In the 1990s, activity accounted for more than 15% of GDP. In 1970, the participation was 21.4%. The Brazilian industry is one of those that showed the most decline in the world in almost 50 years. The deindustrialization of the Brazilian economy is very particular and happened very early, as it is normal for the industry to lose space when the per capita income of families starts to grow, since they consume more services and less goods, however, in Brazil, they do not a high per capita income was reached and the country did not get rich enough for the productive structure to migrate so quickly. With that, the country is stuck. The stagnation of the sector partly explains the slow resumption of the labor market in the country. The solution to the problem, according to experts, would be more financing mechanisms, solving bottlenecks in the national infrastructure and in the tax system to leverage the industry again and make Brazil more competitive. Brazil is the ninth industrial park in the world.[31]
In 2017, the Southeast was responsible for 58% of the value of industrial transformation in Brazil, followed by the South (19.6%), Northeast (9.9%), North (6.9%) and Midwest (5.6%).[32]
In Brazil, the
In 2017, the main manufacturers of tractors in Brazil were John Deere, New Holland, Massey Ferguson, Valtra, Case IH and the Brazilian Agrale. All have factories in the Southeast, basically in São Paulo.[38]
The mineral
In 2016, substances in the metallic class accounted for about 77% of the total value of Brazilian commercialized mineral production. Among these substances, eight correspond to 98.6% of the value:
In
In the paper and cellulose sector, Brazilian pulp production was 19.691 million tons in 2019. The country exported US $7.48 billion in pulp this year, US $3.25 billion only to China. Brazilian forest-based industry exports totaled US $9.7 billion (US $7.48 billion in cellulose, US $2 billion in paper and US $265 million in wood panels). Paper production was 10.535 million tons in 2019. The country exported 2.163 million tons. In 2016, the paper and cellulose industry in the South of the country represented 33% of the national total. This year, Paraná was the national leader in the production of roundwood (mainly eucalyptus) for the pulp and paper industry (15.9 million m³); Brazil was the second country that produced the most cellulose in the world and the eighth in the production of paper. The city that most produced these woods in Brazil was Telêmaco Borba (PR), and the 5th largest was Ortigueira (PR).[50][51][52] Espírito Santo stands out in this sector. In 2018, U $920 million were traded in the sale of cellulose to the foreign market, the third strongest Espírito Santo product in the export balance. In 2016, the top five states producing logs for paper and cellulose (mainly eucalyptus) were: Paraná (15.9 million m³), São Paulo (14.7 million m³), Bahia (13.6 million m³), Mato Grosso do Sul (9.9 million m³) and Minas Gerais (7.8 million m³). Together, they correspond to 72.7% of the national production of 85.1 million m³. Espírito Santo, 9th place, had a production of 4.1 million m³. São Mateus, in the North of Espírito Santo, was the best placed city in the Southeast, as the 6th largest producer of roundwood for paper and cellulose in the country. The ten largest producing municipalities had 22.9% of the country's production. They were the cities of Telêmaco Borba (PR), Três Lagoas (MS), Caravelas (BA), Mucuri (BA), Ortigueira (PR), São Mateus (ES), Dom Eliseu (PR), Nova Viçosa (BA), Water Clara (MS) and Ribas do Rio Pardo (MS).[53][52]
The shipbuilding sector of Rio de Janeiro is one of the most important in the country, but it has already had two major historical crises: one in the 1980s, when it went bankrupt, and another that started in 2014, both due to the country's economic situation: between 2014 and 2016, the Brazilian shipbuilding industry lost 49% of its employed people. The drop of about 30 thousand vacancies was concentrated in the state of Rio de Janeiro, which closed around 23 thousand jobs in the same period. From 31.2 thousand employed in 2014, the number dropped to just 8 thousand in 2016. The gross real value of industrial production also fell 71%, from R $6.8 billion in 2014, to R $1.97 billion in 2016. However, at the end of 2019, the return of the pre-salt began to re-boost the naval sector: maintenance and repair activities pointed to increased demand for the coming years.[54][55][56]
In 2011, Brazil had the 6th largest chemical industry in the world, with net sales of US $157 billion, or 3.1% of world sales. At that time, there were 973 factories for chemical products for industrial use. They are concentrated in the Southeast Region, mainly in São Paulo. The chemical industry contributed 2.7% to Brazilian GDP in 2012 and established itself as the fourth largest sector in the manufacturing industry. Despite registering one of the largest sales in the sector in the world, the Brazilian chemical industry, in 2012 and 2013, saw a strong transfer of production abroad, with a drop in national industrial production and an increase in imports. One third of consumption in the country was served by imports. 448 products stopped being manufactured in Brazil between 1990 and 2012. This resulted in the stoppage of 1,710 production lines. In 1990, the share of imported products in Brazilian consumption was only 7%, in 2012 it was 30%. The main companies in the sector in Brazil are: Braskem, BASF, Bayer, among others. In 2018, the Brazilian chemical sector was the eighth largest in the world, accounting for 10% of the national industrial GDP and 2.5% of the total GDP. In 2020, imports will occupy 43% of the domestic demand for chemicals. Since 2008, the average use of capacity in the Brazilian chemical industry has been at a level considered low, ranging between 70 and 83%.[57][58][59]
In
In
In the leather-footwear sector (
.In Textile industry, Brazil, despite being among the 5 largest producers in the world in 2013, and being representative in the consumption of textiles and clothing, has very little insertion in global trade. In 2015, Brazilian imports ranked 25th in the ranking (US $5.5 billion). And in exports, it was only 40th in the world ranking. Brazil's participation in the world trade in textiles and clothing is only 0.3%, due to the difficulty of competing in price with producers in India and mainly in China. The gross value of production, which includes consumption of intermediate goods and services, by the Brazilian textile industry corresponded to almost R $40 billion in 2015, 1.6% of the gross value of Industrial Production in Brazil. The Southeast has 48.29% of production, the South has 32.65% and the Northeast, 16.2%. Midwest (2.5%) and North (0.4%) are not very representative in this activity. São Paulo (37.4%) is the largest producer. Minas Gerais has 8.51% (3rd largest production in the country, behind Santa Catarina). There are 260 thousand people employed in this activity in the country, 128 thousand in the Southeast. Among the main textile clusters in Brazil, the Vale do Itajaí (SC), the Metropolitan Region of São Paulo (SP) and Campinas (SP) stand out. Together, these three mesoregions are responsible for 36% of formal jobs in this industry. There were 2,983 textile companies in Brazil in 2015. In 2015, Santa Catarina was the 2nd largest textile and clothing employer in Brazil. It occupied the national leadership in the manufacture of pillows and is the largest producer in Latin America and the second in the world in woven labels. It is the largest exporter in the country of toilet / kitchen clothes, cotton terry cloth fabrics and cotton knit shirts.[72] Some of the most famous companies in the region are Hering, Malwee, Karsten and Haco.
In Electronics industry, the turnover of industries in Brazil reached R $153.0 billion in 2019, about 3% of the national GDP. The number of employees in the sector was 234.5 thousand people. Exports were US $5.6 billion, and the country's imports were US $32.0 billion. Brazil, despite its efforts over the decades to get rid of the dependence on technology imports, has not yet managed to reach this level. Imports are concentrated in expensive components, such as processors, microcontrollers, memories, under-mounted magnetic disks, lasers, LED and LCD. Cables for telecommunication and electricity distribution, wires, optical fibers and connectors are manufactured in the country. Brazil has two large electro-electronic production hubs, located in the Metropolitan Region of Campinas, in the State of São Paulo, and in Free Economic Zone of Manaus, in the State of Amazonas. There are large internationally renowned technology companies, as well as part of the industries that participate in its supply chain. The country also has other smaller centers, such as the municipalities of São José dos Campos and São Carlos, in the State of São Paulo; the municipality of Santa Rita do Sapucaí, in the State of Minas Gerais; Recife, capital of Pernambuco; and Curitiba, capital of Paraná. In Campinas there are industrial units from groups such as General Electric, Samsung, HP and Foxconn, a manufacturer of products from Apple and Dell. São José dos Campos, is focused on the aviation industry. This is where the headquarters of Embraer is located, a Brazilian company that is the third largest aircraft manufacturer in the world, after Boeing and Airbus. In Santa Rita do Sapucaí, 8 thousand jobs are linked to the sector, with more than 120 companies. Most produce equipment for the telecommunications industry, such as converters (set-top Box), including those used in the transmission of the digital TV system.[73][74] The technological center of Curitiba has companies such as Siemens and Positivo Informatics. In all, 87 companies and 16 thousand employees work at Tecnoparque, an area of 127 thousand square meters created by state law in 2007. Tecnoparque can grow up to 400 thousand square meters and receive up to four times the number of workers it has today, reaching 68 thousand people.[73]
In the
In the
In the
Another important industry, based in Rio de Janeiro, is White Martins, which deals with the manufacture of industrial and medical gases, such as oxygen cylinders. It is a supplier of all Brazilian petrochemical hubs and one of the largest suppliers to the steel industry. The company also has a strong presence in the metal-mechanic, food, beverage, environment and small consumer segment, in the medical-hospital sector and in the natural gas area.
By state and region
Southeast, South and Midwest are responsible for 80% of the national industrial GDP, as shown below:
São Paulo in 2017 had an industrial GDP of R $378.7 billion, equivalent to 31.6% of the national industry and employing 2,859,258 workers in the industry. The main industrial sectors are: Construction (18.7%), Food (12.7%), Chemicals (8.4%), Public Utility Industrial Services, such as Electricity and Water (7.9%) and Motor Vehicles (7.0%). These 5 sectors concentrate 54.7% of the state's industry.[76]
Minas Gerais had in 2017 an industrial GDP of R $128.4 billion, equivalent to 10.7% of the national industry. It employs 1,069,469 workers in the industry. The main industrial sectors are: Construction (17.9%), Extraction of Metallic Minerals (15.2%), Food (13.4%), Industrial Services of Public Utility, such as Electricity and Water (10.8%) and Metallurgy (10.5%). These 5 sectors concentrate 67.8% of the state's industry.[77]
In Rio de Janeiro in 2017 had an industrial GDP of R $104.6 billion, equivalent to 8.7% of the national industry and employing 556,283 workers in the industry. The main industrial sectors in Rio are: Construction (22.6%), Extraction of Oil and Natural Gas (22.3%), Industrial Services of Public Utility, such as Electricity and Water (14.3%), Petroleum Products and Biofuels (14.1%) and Chemicals (3.6%). These 5 sectors concentrate 76.9% of the state's industry.[78]
Paraná had an industrial GDP of R $92.8 billion in 2017, equivalent to 7.8% of the national industry. It employs 763,064 workers in the industry. The main industrial sectors are: Food (19.1%), Industrial Services of Public Utility, such as Electricity and Water (18.5%), Construction (17.3%), Motor Vehicles (8.1%), and Petroleum Derivatives and Biofuels (5.7%). These 5 sectors concentrate 68.7% of the state's industry.[79]
In 2017, Rio Grande do Sul had an industrial GDP of R $82.1 billion, equivalent to 6.9% of the national industry. It employs 762,045 workers in the industry. The main industrial sectors are: Construction (18.2%), Food (15.4%), Industrial Public Utility Services, such as Electricity and Water (9.8%), Chemicals (6.8%), and Machinery and Equipment (6.6%). These 5 sectors concentrate 56.8% of the state's industry.[80]
Santa Catarina had an industrial GDP of R $63.2 billion in 2017, equivalent to 5.3% of the national industry. It employs 761,072 workers in the industry. The main industrial sectors are: Construction (17.9%), Food (15.9%), Clothing (7.4%), Industrial Public Utility Services, such as Electricity and Water (6.9%), and Textiles (6.0%). These 5 sectors concentrate 54.1% of the state's industry.[81]
Goiás had in 2017 an industrial GDP of R $37.1 billion, equivalent to 3.1% of the national industry. It employs 302,952 workers in the industry. The main industrial sectors are: Construction (25.6%), Food (25.2%), Industrial Public Utility Services, such as Electricity and Water (17.2%) and Petroleum Products and Biofuels (7.4%) and Chemicals (3.7%). These 5 sectors concentrate 79.1% of the state's industry.[82]
Espírito Santo in 2017 had an industrial GDP of R $21.3 billion, equivalent to 1.8% of the national industry. It employs 168,357 workers in the industry. The main industrial sectors are: Extraction of Oil and Natural Gas (23.0%), Construction (20.5%), Industrial Services of Public Utility, such as Electricity and Water (12.3%), Metallurgy (7.5%) and Pulp and Paper (6.6%). These 5 sectors concentrate 69.9% of the state's industry.[77]
Mato Grosso do Sul had an industrial GDP of R $19.1 billion in 2017, equivalent to 1.6% of the national industry. It employs 122,162 workers in the industry. The main industrial sectors are: Public Utility Industrial Services, such as Electricity and Water (23.2%), Construction (20.8%), Food (15.8%), Pulp and Paper (15.1%) and Petroleum Derivatives and Biofuels (12.5%). These 5 sectors concentrate 87.4% of the state's industry.[83]
Mato Grosso had an industrial GDP of R $17.0 billion in 2017, equivalent to 1.4% of the national industry. It employs 141,121 workers in the industry. The main industrial sectors are: Construction (32.0%), Food (27.9%), Industrial Services of Public Utility, such as Electricity and Water (18.6%), Beverages (4.5%) and Oil Products Oil and Biofuels (3.9%). These 5 sectors concentrate 86.9% of the state's industry.[84]
The
In Northeast Region, Bahia has 4.4% of the national industrial GDP,[86] Pernambuco 2.7%,[87] Ceará 1.9%,[88] Maranhão 1.1%,[89] Rio Grande do Norte 0.9%,[90] Paraíba 0.7%,[91] Sergipe 0.6%,[92] Alagoas 0.5%[93] and Piauí 0.4%,[94] num overall total of approximately 13.2%.
In the
Energy
The main characteristic of the Brazilian energy matrix is that it is much more renewable than that of the world. While in 2019 the world matrix was only 14% made up of renewable energy, Brazil's was at 45%. Petroleum and oil products made up 34.3% of the matrix; sugar cane derivatives, 18%; hydraulic energy, 12.4%; natural gas, 12.2%; firewood and charcoal, 8.8%; varied renewable energies, 7%; mineral coal, 5.3%; nuclear, 1.4%, and other non-renewable energies, 0.6%.[102]
In the electric energy matrix, the difference between Brazil and the world is even greater: while the world only had 25% of renewable electric energy in 2019, Brazil had 83%. The Brazilian electric matrix is composed of: hydraulic energy, 64.9%; biomass, 8.4%; wind energy, 8.6%; solar energy, 1%; natural gas, 9.3%; oil products, 2%; nuclear, 2.5%; coal and derivatives, 3.3%.[102]
In total electricity generation, in 2019 Brazil reached 170,000 megawatts of installed capacity, more than 75% from renewable sources (the majority,
In 2013, the Southeast used about 50% of the load of the National Integrated System (SIN), being the main energy consuming region in the country. The region's installed electricity generation capacity totaled almost 42,500 MW, which represented about a third of Brazil's generation capacity. The
The South Region has the Itaipu Dam, which was the largest hydroelectric plant in the world for several years, until the inauguration of the Three Gorges Dam in China. The region is also the only one in the country that produces coal and oil shale.
Northern Brazil has large hydroelectric plants such as Belo Monte and Tucuruí, which produce much of the national energy.
Brazil's hydroelectric potential has not yet been fully explored, so the country still has the capacity to build several renewable energy plants in its territory.
In the Northeast region, the installation of
Brazil also has 3
As of March 2022,[ref] according to ONS, total installed capacity of
In 2020, Brazil was the 2nd largest country in the world in the production of energy through biomass (energy production from solid biofuels and renewable waste), with 15,2 GW installed.[123]
Cars
Brazilian automobile production began in 1957, with an initial production of 1,166 units in the first year. Most production is concentrated in the states of São Paulo, Minas Gerais and Paraná.
The automotive industry in Brazil boomed after ex-president Fernando Collor de Mello opened up the market in 1990, but high production costs, high taxes and technology deficits are barriers that Brazil is still struggling to defeat.
Brazil's automotive industry has been displaying impressive two-digit growth over the last years, totaling revenues over USD 100 billion by the end of 2010. These figures secured Brazil the fourth position amongst the largest car markets in the world (one position ahead of Germany). The industry generates 1.5 million jobs.
The perspective of a steady development of the industry is attracting billions in investments to the country.
Year | 1960 | 1970 | 1980 | 1990 | 2000 | 2004 | 2005 | 2007 | 2008 |
Units (in millions) | 0.042 | 0.306 | 0.933 | 0.663 | 1.36 | 1.86 | 2.50 | 2.61 | 2.97 |
Petroleum
The northeast shore of the
Year | 1960 | 1970 | 1980 | 1990 | 2000 | 2006 |
Thousand barrels per day | 83 | 169 | 189 | 653 | 1,271 | 1,809 |
Statistics
Electricity:[129]
- production: 380 TWh (2004)
- consumption: 391 TWh (2004)
Electricity - production by source: (2004)[129]
- other sources: 9%
- hydroelectric: 83%
- conventional thermal: 4%
- nuclear: 4%
Oil:[130]
- production: 2.165 million barrel/day (2006)
- consumption: 2.216 million barrel/day (2006)
- imports: 0.051 million barrel/day (2006)
- proven reserves: 11.2 billion barrels (2006)
- refinery capacity: 1.908 million barrel/day (2006)
Natural gas:[130]
- production: 9.88 billion cubic kilometers (2006)
- consumption: 19.34 billion cubic kilometers (2006)
- imports: 9.45 billion cubic kilometers (2006)
- proven reserves: 326 billion cubic kilometers (2006)
See also
- Automotive industry in Brazil
- Ministry of Development, Industry and Foreign Trade
References
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{{cite web}}
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- ^ Profile of the Industry of São Paulo
- ^ a b Minas Gerais Industry Profile
- ^ Rio de Janeiro Industry Profile
- ^ Paraná Industry Profile
- ^ Rio Grande do Sul Industry Profile
- ^ Santa Catarina Industry Profile
- ^ Goiás Industry Profile
- ^ Industry Profile of Mato Grosso do Sul
- ^ Industry Profile of Mato Grosso
- ^ Industry Profile of the Federal District
- ^ Bahia Industry Profile
- ^ Industry Profile of Pernambuco
- ^ Industry Profile of Ceará
- ^ Profile of Maranhão Industry
- ^ Industry Profile of Rio Grande do Norte
- ^ Paraíba Industry Profile
- ^ Industry Profile of Sergipe
- ^ state/al Industry Profile of Alagoas
- ^ Industry Profile of Piauí
- ^ Pará Industry Profile
- ^ Industry Profile of Amazonas
- ^ Rondônia Industry Profile
- ^ Profile of Tocantins Industry
- ^ Amapá Industry Profile
- ^ Industry Profile of Acre
- ^ Industry Profile of Roraima
- ^ a b Matriz Energética e Elétrica
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Bibliography
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- Graça Filho, Afonso de Alencastro. A economia do Império brasileiro. São Paulo: Atual, 2004. (in Portuguese)
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- Silva, Hélio. 1889 - A república não esperou o amanhecer. Porto Alegre: L&PM, 2005. (in Portuguese)
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External links