Sunday, February 28, 2021

Expecting an improvement in the economy, 82% of companies intend to invest in 2021 – Prime Time Zone

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CNI research indicates optimism with the resumption of activities in the country; process development and increase in productive capacity lead to investment intentions

Rodrigo Felix Leal / AEN-PRCNI survey shows that 69% of industry entrepreneurs invested in 2020. second worst performance in the historical series

After a totally atypical year because of the new coronavirus pandemic, 82% of large Brazilian companies intend to invest in 2021, revealed a survey made with 452 corporations and released this Tuesday, 23, by National Confederation of Industry (CNI). The figure is slightly below the 84% recorded in 2020 – before the global escalation of Covid-19 -, and above the intentions conferred in 2018 (81%) and 2019 (80%). The planned investments should occur, mainly, in the improvement of the production process, according to 35% of the industries. The increase in production capacity remained in second place, but the percentage went from 23% in 2020 to 33% of this year’s plans. The index has not surpassed 30% since 2011, the beginning of the historical series, and is the highest in the series. According to CNI technicians, the increase indicates the confidence of businessmen in the recovery of the industry after the most critical period generated by the pandemic. For another 15% of respondents, the main objective of the investments is to maintain productive capacity and, in 11% of them, to introduce new products. In 66% of the cases, regardless of the expected innovation focus, there is an expectation of acquiring machines. In addition, the percentage of investment aimed mainly at the domestic market increased from 36% to 39%, but remains below the historical average of 42%.

Data from the Brazilian Institute of Geography and Statistics (IBGE), point out that industrial activity fell 4.5% in 2020, the worst performance in four years. The CNI survey shows that only 69% of those who had investment plans took the idea forward, the second lowest index in the historical series started in 2010 and below the 67% recorded in 2016. Two problems were practically tied as the main reasons for the frustration of entrepreneurs: the reassessment of the domestic product market (36%) and the unexpected increase in the expected cost of investment, including an increase due to exchange rate variation (35%). In 2019, the change in the domestic market was isolated in the first place. “We feel that the investments were not made and were postponed to this year, due to the high cost to invest and the lack of financing alternatives. For this year, we noticed a great concern with the production processes, which must be improved, with the acquisition of new machines and technology ”, explains the director of Industrial Development and Economy, Carlos Eduardo Abijaodi.

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Expecting an improvement in the economy, 82% of companies intend to invest in 2021 - Prime Time Zone