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?

Click here to download a brochure with more information about the sector.

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