Industries expect to sell and profit more
Folha de S. Paulo - 12/02/2007
High tax burden, unfavorable exchange rate for exportation and high interest rates - the main complaints of entrepreneurs to keep their plants competitive - may not be obstacles for the strong boom of the industry in the coming year. The consultation made to 1,594 São Paulo industries from 12 sectors between October and November by Ipsos, requested by the Fiesp (Federation of the Industries of the State of São Paulo), shows that 77% of the companies may sell more; 66%, profit more; 50%, hire more people; and 57%, invest more next year. The growth in the number of jobs, income, and offer of credit, in addition to longer terms for consumers and companies to repay loans, has led entrepreneurs to make very optimistic forecasts for their businesses throughout 2008. In the study carried out by Ipsos, the sectors of tobacco, wood, and furniture are the ones that stand out in the positive forecasts for 2008. From the companies heard in the sectors, 45% expect to increase sales in more than 15% next year; 29% expect to increase profitability in more than 15%; 23% expect to increase the number of people employed in more than 15%; and 24% to increase the investments in more than 15%. That was one of the surprises of the survey, in the evaluation of the Fiesp, since these sectors were the most pessimistic regarding businesses this year. However, they would be benefiting from the easier credit offered by the financial institutions. The sectors of paper and cellulose, sugar and alcohol, basic metals and metallic structures, machinery and equipment, chemical, and the car sector also stand out in the optimistic forecasts for next year. The survey carried out by Ipsos verified that 63% of the 1,594 industries heard are satisfied with the performance of both the economy and the company. If we consider the industries with more than 300 employees, 76% of the companies say they are glad with their performance and also with the performance of the country. What worries the entrepreneurs is the performance of the businesses abroad. From the 12 sectors consulted by Ipsos, 9 have reduced the participation of the exportations on the revenues. Exportations currently represent 16%, on an average, of the sales of the 717 exporting industries consulted. Prior to 2005 that percentage was of 18%.