Brazilian ornamental stone sector bets on growth and foresees investments in 2021

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  • 08 February 2021
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Expectations were recorded in a survey carried out by Centrorochas and Sindirochas among companies in the national sector in the last week of January.

A survey carried out by the Brazilian Center of Dimension Stone Exporters (Centrorochas) and the Union of Dimension Stone, Lime and Limestone Industries of the State of Espírito Santo (Sindirochas), between January 22nd and 30th, pointed out that 75% of companies in the The national ornamental stone sector is expected to grow this year, compared to 2020. The sector’s optimism is reinforced by the fact that 69% of the companies participating in the survey indicate that investments will be made throughout 2021.

According to the companies participating in the consultation, the planned investments will be applied in processing equipment (42%), labor qualification (25%), physical installations (25%), management software (14%) and equipment for quarries (11%).

Most companies (48%) also pointed out that they expect an increase in sales between 11% and 25%. Another 25% believe it will be a year of stability, 13% project a 10% growth in business and 2% of the participants expect increases of more than 50% in sales volume in relation to 2020.

The data considers the universe of those industries participating in the query. The survey took place via electronic form, with the participation of companies located in Espírito Santo, São Paulo, Minas Gerais and Ceará, and simultaneous operations in the domestic and foreign markets (67%), only the domestic market (19%) and only the foreign market ( 13%).

Hiring expectations in the coming months

Most companies (62%) expect an increase in staff in the first half of the year. Another 38% indicated a scenario of stability in the staff.

With regard to the end of 2020, 46% indicated stability in the number of employees when compared to the beginning of the year. Another 29% indicated an increase in the chart at the end of the year and 25% ended the period with a drop.

export market

The consultation had the participation of companies with simultaneous operations in the internal and external markets (67%), only the internal market (19%) and only the external market (13%).

Among those operating in both markets, the perception was that when comparing 2020 with 2019, the domestic market: grew (80%), remained stable (11%) and had a decline (9%). These same companies, when evaluating the reality of the external market on the same basis of comparison, indicated that: there was growth (57%), it was stable (34%) and it showed a decrease (9%).

When consulted about this possibility, a significant number of companies that currently operate only in the domestic market showed interest in operating in the foreign market.

concerns to produce

The risk of facing problems to be able to produce throughout 2021 was pointed out by 50% of the participants. The lack of raw material (23%) was the main difficulty mentioned, followed by the lack of inputs (19%) and lack of installed capacity (19%), lack of qualified labor (12%), lack of capital turning (6%) and other difficulties (10%).

Increase in sales in 2020

When questioned about the result of the turnover registered in 2020, in relation to 2019, 56% of the companies indicated an increase, 29% stability and 15% registered a decrease.

With regard to the expectation existing at the beginning of the pandemic, 81% indicated that they were surprised by the growth in the volume of business in 2020. For 12%, the result at the end of the year was within expectations and only 8% indicated that they had experienced a worse reality than than the one imagined in the first moments of the pandemic

Access the full result of the consultation “2020 Closing and expectations for 2021”: click here!

Image courtesy GSM Group.