If the investment of industry fell almost to the lowest level of the historical series in 2020, due to the Covid-19 pandemic, this year the expectation is that he will return to the historical level. At least that’s what a survey by the National Confederation of Industry (CNI) shows.
Last year, only 69% of large companies made investments, the survey showed. In 2020, when the year started, 84% of industries planned to invest. This year, 82% of these companies said they intend to make new investments, especially for productivity gains.
– The expectation is that the frustration of last year, with the pandemic, will not be repeated. But if the economic scenario worsens, with increased uncertainty, these investment plans may be postponed or partially implemented in the future – says Marcelo Azevedo, manager of economic analysis at CNI.
For him, however, with vaccination already underway, albeit at a slower pace than desired, there will not be a “dip” in consumption and production, as happened last year, especially in the first quarter.
Although unemployment is still on the rise, which can impact consumption, the rebuilding of inventories will compensate for a possible drop in demand. Last year, the industry suffered from a lack of inputs, especially in the second half of the year.
The CNI survey showed that in 2020, the percentage of 69% of the companies that invested was the lowest recorded by the survey since 2016, the year of recession in the country, when only 67% of the large industries invested.
The main reasons for companies to reduce or stop investing last year were the negative reevaluation of the domestic market, as the pandemic brought down demand.
In addition, rising costs for part of the investment stalled, especially because of the rise in the dollar. The lack of inputs and raw materials also frustrated many companies’ intention to invest, showed the CNI survey.
Productivity gains are the main reason for new investments this year, followed by an increase in productive capacity. At least 33% of the companies surveyed said that the reason for the investment is to increase production capacity, with the purchase of machinery and equipment.
The percentage has not exceeded 30% since 2011, the beginning of the historical series, and is the highest in the series. This signals that there is an expectation of a strong recovery in industrial activity after the most critical period of the pandemic. The industry believes in the potential of the domestic market, the survey showed.
The survey was carried out with 462 companies, but does not reveal the total resources that the companies intend to invest.