Industry development of Brazil
de Gaulle called Brazil county of eternal future. The country demonstrated opportunities in different areas, but they were hardly effectively utilized. First of all it’s about cultivation of rubber trees, business which produced enormous profits, but died as soon was invented synthetic rubber. Lets look at pathetic building of Amazonas theater, build these times
The same we may say about coffee beans, the leading Brazilian commodity product, consumed all over the world, but bringing profits to few world coffee monopolies.
Finally, few of us aware that Brazil may claim different inventions, including radio. But the problem was in Brazilian elite, interested in utilizing natural resource.
Anyway we are interested in todays opportunities in industry, not only in agriculture, energy or development. By opportunities I mean creation of business, dealing with local companies, or selling products overseas, utilizing traditional advantages: low labor costs and abundant natural resources.
Looking globally on Brazilian industry we may find that:
- Brazil Industrial production rose 0.3 % YoY in Aug 2023, following a drop of 1.4 % YoY in the previous month.
- Brazil Industrial production index growth rate YoY data is updated monthly, available from Jan 1986 to Aug 2023, with an average rate of 1.2 %.
- The data reached an all-time high of 34.5 % in Apr 1991 and a record low of -28.4 % in Apr 1990.
All of these means that you can not expect break throughs in manufacturing business, started in Brazil. It may work as cash cow, but not as a star, according to McKinsey model. Another interesting factor to discuss about manufacturing/metalworking opportunities is production and use of superabrasive (diamond and cubic boron nitride) tools, necessary for most precise and demanding industries: from bearings to 3D printers.
Brazil consumes mainly diamond drilling bits for oil and gas exploration and diamond wheels and drills for construction. I suppose machine parts, which may be processed by metalworking tools, are delivered from abroad: USA, Europe, etc.