Pandemic Leads to Strong Upgrade, Modernization Project Activity in Brazil

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Researched by Industrial Info Resources (Sugar Land, Texas)--The COVID-19 pandemic has made it more difficult for Brazil's manufacturers to obtain new machinery in a timely manner--especially imported equipment. One solution is to modernize or upgrade existing equipment, such as grinding machines, boring machines and gear generators.

Due to a lack of inputs such as steel and components, Brazil's machinery suppliers have been forced to extend delivery times. Nonetheless, modernization generally has managed to speed up the process as market demand continues to grow.

Lack of supplies, waiting time and high shipping costs for new equipment also are significant contributing factors to Brazil's recent boom in plant modernization and upgrading.

A large number of companies operating in Brazil--such as LG, Eaton, Bosch, AGCO, John Deere, Thyssenkrupp, Scania, FCA Fiat, Toyota, Electrolux, CNH, Honda and Faurecia--are modernizing to bolster production in their factories. Proper modernization does not reduce production capacity and avoids suspensions that generate large fiscal losses.

Industrial Info is tracking more than 800 plant modernization and upgrade projects, worth more than $15 billion, across Brazil. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can click here for a list.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn.