Civil Construction is the fastest growing sector

Survey of the market indicates 50% growth in sales of heavy construction equipment (the so-called “yellow line”) from now through 2016, and the forecast for the next six months is an increase of 3%. This was one of the topics covered during the presentation made today (June 01) at the Sobratema Congress - an event that is held concurrently with M&T Expo 2012 at the Centro de Exposições Imigrantes in São Paulo. With the help of the ‘Sobratema Study of the Brazilian Market for Construction Equipment’, Sobratema presented to all the participants the projections for growth in Brazil over the next seven months.

Sobratema consultants Brian Nicholson (journalist) and Rubens Sawaya (professor of economics at the University of São Paulo) presented their talks providing concrete data obtained in a painstaking survey of the entire market of construction and mining in Brazil.

Consultant Rubens Sawaya presented the current international economic scenario. He reported that the United States is carrying out an economic restructuring process that will show results in the medium to long term - the rate of unemployment rate is still high - moving slowly toward recovery of its economy.

China’s economy has been developing, growing from 8% to 9% per year. "The country will invest heavily in high-tech in the infrastructure sector, threatening the economy of Germany," says the consultant.

Outlook for the months to come

One positive aspect is growth in incomes, a product of the country’s economic growth in recent years. With the reduction in bank interest rates, the rate of delinquency on loans has been decreasing, and people in arrears have been successfully renegotiating their debts. "Banks do not want your home, car or your refrigerator back, but rather they want ensure customers for their loans and reduce the number of debtors among their current customers," says Sawaya.

A 22% drop in loans made by companies. This decrease is also due to the advance purchases of trucks in late 2011 due to the establishment of new legislation - Proconve P7.

The consultant points out that since Brazil is experiencing an economic slowdown, the only project that has been growing at a rapid pace in the government’s PAC (Program for Acceleration of Growth) is project "Minha Casa, Minha Vida” (My House, My Life) with a monthly investment of US$ 7 billion.

Preparations for the 2014 FIFA World Cup and the 2016 Olympics

Presently, 5% of the works for the 2014 FIFA World Cup have been completed, 54% are underway and 41% of the planned works have not begun. "This is a issue of concern since we are just a little over two years away from this major world event," warns Sawaya.

The number of job openings in the area of construction has been growing, but although job openings do exist, there aren’t enough trained professionals to fill them. "With the modernization of the construction sector’s machine, one needs to have qualified professionals to run them," he says.