The Abimaq showed that sales of machinery and equipment had a better performance since January 2015, when the sector's revenue was 13,2 billion reais

The Brazilian Association of Machinery and Equipment Industry - Abimaq, announced that in January, the total turnover of the Brazilian machinery and equipment industry was 12,5 billion reais, an increase of 38,5% compared to the same month of 2020. According to the association, this was the best performance since January 2015, when the sector's revenue was 13,2 billion reais.

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Abimaq's chief executive, José Velloso, said that “After a long time, something like seven years without investing, companies need to renew their industrial park. If not, the park becomes obsolete and productivity drops. Much of the sales of machines for the industry come from the renovation of obsolete industrial facilities”, explaining the reason why sales of machines continue to increase without increasing the investment rate.

Sales and exports:

Of the total of 12,5 billion reais, 9,6 billion reais came from sales to the Brazilian domestic market, a total of 50,8% higher than in January 2020.

“The segments that signaled an increase in sales, highlighting agricultural machinery with advances in companies of all sizes. Another segment that has contributed to the increase in domestic sales and infrastructure machines, encouraged, to a large extent, by the progress of the Investment Partnership Program (PPP)”, says in a note to Abimaq.

In terms of exports, revenue from equipment in this industry in January was 545,8 million reais, a reduction of 1,6% compared to the same month of 2020. Compared to December, exports fell 28,1%.

“Exports of machinery and equipment strongly felt the reduction in global trade due to the pandemic in 2020. After growing 0,9% in December, exports of machinery fell by 1,6% in January 2021, in line with the seasonality of beginning of the year”, concluded the Association.