Brazilian composites industry forecasts revenue growth for 2011

The Brazilian Association of Composites Materials (ABMACO) says the Brazilian composites industry sold $440 million worth of material in the first quarter of 2011 and forecasts of 8.2 percent in the sector's total revenue in 2011.

The Brazilian Association of Composites Materials (ABMACO) reported on May 10 that the Brazilian composites industry sold $440 million (USD) worth of materials in the first quarter, a 16.3 percent increase compared to the same period last year. The consumption of raw materials, however, fell 8.7 percent, totaling 46,900 tons.

The difference between both indicators is mainly due to repeated increase in the prices of petrochemical inputs. Figures are part of the latest survey by Maxiquim, a consultancy commissioned by ABMACO.

The study of Maxiquim also forecasts an increase of 8.2 percent in the sector's total revenue in 2011, reaching $1.725 billion (USD) – the revenue consisted of $1.595 billion (USD) last year. Concerning the consumption of raw materials, the consultancy estimates that Brazil will process 214,000 tons, 4.8 percent more than the 2010 total of 205,000 tons. Yet, the expected growth in the number of jobs is 1.8 percent, totaling 75,000 vacancies.

"All segments that consume composites materials must grow this year, but we believe that civil construction, wind energy generation and transportation will be responsible for even more expressive indexes," says Gilmar Lima, ABMACO's president. About the transportation area, Lima highlights the positive impact that the anticipation on the acquisition of trucks and buses will promote in the last quarter of 2011, due to Euro 5 standard, which will come into force in the beginning of 2012 — vehicles adjusted to the new regulation, which controls the emissions of pollutants, are more expensive.

"On the other hand, scarcity of qualified workforce in our sector is what concerns us, as well as the uncontrolled increase in prices of main inputs, the overvaluation of Real [Brazilian currency] and the chronic lack of government investment in infrastructure," he says.