Machinery and Equipment
The domestic industry of machinery and equipment is primarily concentrated in the State of São Paulo. According to the Brazilian Institute of Geography and Statistics (IBGE), the State accounts for 53.81% of the value of industrial transformation (VTI) in the sector in Brazil, which corresponds to approximately US$ 23 billion (2016). According to the Annual Report of Social Information of the Ministry of Labor and Employment (Rais/MTE), the State represents 47.25% of total employed persons (213,000 employees) in the Brazilian industry of capital goods (2016).
The capital goods sector is responsible for the production of a complex group of machinery and equipment used in the production of other goods, while keeping a direct relationship with the production of the other sectors, and playing an important role in the generation and dissemination of new intensive technologies.
In the State, the capital goods sector is concentrated in the Metropolitan Regions of São Paulo and Campinas, with 38,78% and 11.56% of jobs in the sector, respectively (Rais/MTE - 2017).
It is also worth noting its significant share in the industry in the regions of São José dos Campos, Central (especially São Carlos, Araraquara and Matão) and Sorocaba.
| São Paulo State ― 2012-2016 | |||||
|---|---|---|---|---|---|
| Total net sales revenue (thousand US$) | |||||
| Sectors | 2012 | 2013 | 2014 | 2015 | 2016 |
| Manufacture of computer, electronic and optical products | 17,419,363 | 18,205,481 | 17,168,883 | 12,523,601 | 10,833,032 |
| Manufacture of electronic components and boards | 940,668 | 935,006 | 950,034 | 586,303 | 591,236 |
| Manufacture of computers and peripheral equipment | 6,609,831 | 5,619,285 | 6,150,223 | 4,876,278 | 3,598,758 |
| Manufacture of communication equipment | 7,043,440 | 8,745,447 | 7,328,307 | 5,246,023 | 5,360,503 |
| Manufacture of consumer electronics | 491,513 | 313,58 | 504,957 | 444,622 | 115,468 |
| Manufacture of measuring, testing, navigating and control equipment; watches and clocks | 2,028,290 | 2,286,322 | 1,941,440 | 1,120,020 | 916,313 |
| Manufacture of irradiation, electromedical and electrotherapeutic equipment | 231,967 | 222,65 | 242,248 | 211,498 | 216,268 |
| Manufacture of optical instruments and photographic equipment | 61,641 | 61,506 | 34,801 | 20,731 | 14,677 |
| Manufacture of magnetic and optical media | 12,014 | 21,685 | 16,873 | 18,125 | 19,809 |
| Manufacture of electrical equipment | 17,210,973 | 15,955,717 | 14,273,238 | 10,037,083 | 9,318,840 |
| Manufacture of electric motors, generators, transformers and electricity distribution and control apparatus | 4,203,403 | 4,013,147 | 3,026,291 | 2,708,922 | 2,482,050 |
| Manufacture of batteries and accumulators | 652,421 | 690,329 | 674,683 | 482,251 | 515,441 |
| Manufacture of wiring and wiring devices | 6,433,249 | 6,239,635 | 5,861,691 | 3,996,768 | 3,676,446 |
| Manufacture of electric lighting equipment | 726,867 | 470,251 | 500,431 | 349,726 | 318,655 |
| Manufacture of domestic appliances | 4,037,372 | 3,510,204 | 3,138,963 | 1,927,993 | 1,860,468 |
| Manufacture of other electrical equipment | 1,157,662 | 1,032,150 | 1,071,180 | 571,422 | 465,78 |
| Manufacture of machinery and equipment not elsewhere classified | 30,097,281 | 30,195,036 | 27,390,209 | 17,268,023 | 15,950,936 |
| Manufacture of other pumps, compressors, taps and valves | 8,312,205 | 7,719,732 | 6,844,338 | 4,519,266 | 4,029,563 |
| Manufacture of general-purpose machinery | 7,199,878 | 7,562,787 | 7,035,297 | 4,607,055 | 4,205,140 |
| Manufacture of agricultural and forestry machinery | 4,014,138 | 4,754,349 | 3,875,646 | 2,310,976 | 2,538,082 |
| Manufacture of metal-forming machinery and machine tools | 1,550,278 | 1,551,657 | 1,299,801 | 820,596 | 838,643 |
| Manufacture of machinery for mining, quarrying and construction | 5,613,139 | 5,451,903 | 5,215,064 | 2,936,942 | 2,484,891 |
| Manufacture of special-purpose machinery | 3,407,642 | 3,154,607 | 3,120,062 | 2,073,189 | 1,854,617 |
| Source: IBGE. | |||||
The technological innovation activity, key to improving the competitiveness of Brazilian companies at the global level, includes institutions and credit facilities specifically intended to the sector of production of capital goods.
In order to stimulate research and innovation, the Brazilian Machinery and Equipment Industry Association (Abimaq) created the Institute of Technological Research and Development of the Machinery and Equipment Industry (Ipdmaq), which has as its main objectives the encouragement of corporate actions in technological research and development and the promotion of an environment to support companies in their efforts to create competitive products and services.
Credit facilities
With respect to the financing programs, Desenvolve SP – São Paulo Development Agency – offers an exclusive program: the FIP Simplificado (Simplified Funding for Investments in São Paulo), intended for the isolated acquisition of new machinery and equipment, giving priority to products manufactured in São Paulo.
The National Bank for Economic and Social Development (BNDES) also provides aid intended to technological innovation in general and specific credit facilities for the sector, such as BNDES PSI - Capital Goods (for the production and acquisition of new machinery and equipment) and Productive Capacity – Capital Goods Industry (intended for the implementation, modernization and expansion of industries that manufacture machinery and equipment).
Why invest in the Machinery and Equipment
sector in São Paulo?
- The State is a leader in the production of machinery and equipment in Brazil.
- It concentrates the largest industrial consumer market.
- It has a great infrastructure network and distribution channels.
- It has specialized labor at all stages of production.
- It offers special credit facilities for the sector.
Click here to download a brochure with more information about the sector.
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