Industrial production of electronics is expected to fall by 68% in Brazil in 2020

Companies that produce industrial electronics continue to feel the impact of the economic crisis caused by the pandemic of the coronavirus. According to a survey released this Wednesday (3), there were 30,3% drop in the production of these companies' products.

From the survey carried out by the Brazilian Association of Electrical and Electronics Industry (Abinee) between May 26 and 29, 25% of respondents believe in an optimistic scenario, stating that they believe in stability until the end of 2020 – and for 7% of them, production will be above what was recorded in 2019.

The most impressive thing is that 68% of companies project a decline in production this year, compared to last year, with estimated reduction of 15% in this period. The crisis was felt by 62% of companies that recognized the fall in production between March and April. Since the coronavirus arrived in Brazil in mid-March, this extended throughout the following month.

The current scenario of industrial production

Surprisingly, 32% of companies had a current scenario stable in the first two months of the crisis, against a growth of 6% of the interviewees. In May, stability rose to 41%, which means a repetition of the weak result of the previous month, and growth came to 21%. According to the research, 70% from them did not reduce their staff in may.

As an option, 95% of the interviewees took initiatives in favor of avoid or reduce layoffs: adapted to home office, made agreements to reduce working hours and wages, anticipated vacations, made use of the hour bank, among others. The research says that 87% of this industrial production is adopting emergency measures following the guidance of the municipal, state and federal governments, to soften the impact of the crisis.

In specific terms in the field of equipment production electrical, there was a reduction of 70,4% in home appliances; 48,1% from light bulbs and 42,1% from cells and batteries, for example. already in the area electronics, the retraction was 49,4% in audio and video devices; 45,6% in communication equipment and 40,3% in IT goods.

The current drop is the largest in the historical series, which began in 2002. As informed Humberto Barbato, president of Abinee, “It is important to point out that the production of all segments of the sector, both in the electrical and electronics industries".

For him, this perspective today reflects the current situation, as well as when we talk about the uncertainties about what the trade scenario will be like at the definitive end of the quarantine. "The consumer without security will not change his cell phone without knowing if he will have his job kept“, he concludes.

SOURCES: Abinee, This IS Money, Digital Convergence, Popular Mail, Digital Look, Teletime,