Flavio Maluf Talks About the Fall of Industrial Costs in the Second Quarter

According to the National Industry Confederation mid-September data, there was a decrease of over 10 percent of the manufacturing cost in Brazilian Companies this year. According to the National Confederation of Industry data, the imported intermediate goods resulted in the reduction of costs. For this reason, the companies realized a decisive working capital in the fall of the industry costs.

According to the released information at the end of the mid-September period, the costs of running an industry also fell by 11 percent in the second quarter of the year. When the data is compared to the first three months of the year, the decline in industrial costs is evident. Flavio Maluf, the entrepreneur and Eucatex President, reports that the fall has never been realized for the past two years. For this reason, he also said that this decrement was last seen in the final quarter of 2014.

Costs of working capital and imported intermediate goods were the main factors responsible with the retraction. While bot factors reduced in operations costs, the companies had much to gain at the proximal. When the costs of working capital between June and April this year were compared with the previous quarter, there was a decrease in 8 percent. The decrease was 12 percent in the same intermediate goods comparison. The appreciation of the Brazilian currency significantly contributed to that fact.

For this reason, the entrepreneur Flavio Maluf comments that the data released by CNI appreciates with the appreciation or depreciation of the American currency. While there remains a reflection on cost, competitiveness has been lost in both external and internal businesses. While the imported goods retract in costs associated with production in the Brazilian economy remains at 12 percent, they are larger than the 10 percent experienced in the industrial contraction costs. For this reason doing business with other countries has become more competitive.

According to the analysis made by CNI, Flavio Maluf says that the products made in Brazil are quite competitive in the worldwide markets. They are highly valued in the American market. According to the CNI records, much of the goods produced in the country for export are consumed in Brazil.