Industry in Brazil
Most of the country's industrial establishments appeared in the Brazilian southeast (mainly in the provinces of Rio de Janeiro, Minas Gerais and, later, São Paulo), and, according to the Commerce, Agriculture, Factories and Navigation Joint,[who?]
However, most, about 56 establishments, would be considered workshops by today's standards, directed toward the production of soap and tallow candles, snuff, spinning and weaving, foods, melting of iron and metals, wool and silk, amongst others.
[3] From a colony whose aim was to export primary goods (sugar, gold and cotton), Brazil has managed to create a diversified industrial base in the 20th century.
[10] With unprecedented industrial growth, multiple manufacturing establishments appeared, dedicated to such diverse products as smelting of iron and metal, machinery, soap and candles, glasses, beer, vinegar, gallons of gold and silver, shoes, hats and cotton fabric.
[11] One of the main establishments created at this period was the metallurgical factory Ponta da Areia (in English: Sand Tip), in the city of Niterói, that also constructed steamships.
[citation needed] The concentration of industry that emerged in the province of Bahia considerably expanded its economic scope, reaching the south of Ceará, Piauí and even Minas Gerais.
in 1857, seven factories benefited from this practice of incentives, among them, the Ponta da Areia mentioned above and that was owned by Irineu Evangelista de Sousa (later Viscount of Mauá).
Other incentives arose, such as the decree of 8 August 1846 that exempted manufactured products from certain transport taxes (internally as well as externally), shielded from military recruitment a specific number of employees of industrial establishments and eliminated tariffs on parts and machinery imported for textile factories.
[22][23] Later, under the Rio Branco cabinet at the beginning of the 1870s, the tariff on foreign products was newly raised to 40%, and new raw materials were exempted from import taxes.
[16] During the 1870s, the decline of the coffee region of the Paraíba Valley and in some areas of sugar production, caused many plantation owners to invest not only in the cotton textile industry, but also in other manufacturing sectors.
Accounting for one-third of GDP, Brazil's diverse industries range from automobiles, steel and petrochemicals to computers, aircraft, and consumer durables.
With the increased economic stability provided by the Plano Real, Brazilian and multinational businesses have invested heavily in new equipment and technology, a large proportion of which has been purchased from U.S. firms.
It is common for the industry to lose ground as families' per capita income increases, leading to a shift towards consuming more services and fewer goods.
Experts suggest that the solution to this issue would involve implementing more financing mechanisms, addressing bottlenecks in national infrastructure and the tax system to revitalize the industry and enhance Brazil's competitiveness.
This decline was influenced by the internalization of vehicle production in Brazil, driven by factors such as high labor costs and charges imposed by unions, which deterred investments and prompted manufacturers to seek new locations.
The development of the ABC cities has also contributed to reducing their attractiveness, as a result of escalating real estate prices and increased residential area density.
[37] In 2017, the main manufacturers of tractors in Brazil were John Deere, New Holland, Massey Ferguson, Valtra, Case IH and the Brazilian Agrale.
In the Southeast region, iron ore, gold, manganese, and bauxite, in the Quadrilátero Ferrífero; niobium and phosphate in Araxá; gemstones in Governador Valadares; and graphite, in Salto da Divisa, all located in the state of Minas Gerais.
Brazil is the second-largest global iron ore exporter and holds the second position in the reserve ranking, with at least 29 billion tons beneath Brazilian soil.
São Mateus, in the North of Espírito Santo, was the best-placed city in the Southeast, ranking as the sixth largest producer of roundwood for paper and cellulose in the country.
However, at the end of 2019, the return of the pre-salt began to re-boost the naval sector: maintenance and repair activities pointed to increased demand for the coming years.
The companies that most profited from the sale of medicines in the country in 2015 were EMS, Hypermarcas (NeoQuímica), Sanofi (Medley), Novartis, Aché, Eurofarma, Takeda, Bayer, Pfizer and GSK.
The largest pole in Brazil is located in Rio Grande do Sul (region of Vale dos Sinos, in 25 cities around Novo Hamburgo).
The footwear sector in Franca comprises approximately 550 companies and employs around 20,000 workers, with many of the most renowned men's shoe factories in the country originating from São Paulo.
Minas Gerais has a hub specialized in affordable shoes and counterfeit sneakers in Nova Serrana, with about 830 industries producing around 110 million pairs in 2017.
Brazil's share in global textile and clothing trade is only 0.3%, primarily due to challenges in competing on price with producers in India and especially China.
[70] In the small appliances sector, Brazil has two famous companies: Arno, which was 70 years in São Paulo, and today its factory is located in Itatiaia-RJ; and Britânia, originally from Curitiba-PR.
The company also has a strong presence in the metal-mechanic, food, beverage, environment and small consumer segment, in the medical-hospital sector and in the natural gas area.
[80] In Northeast Region, Bahia has 4.4% of the national industrial GDP,[81] Pernambuco 2.7%,[82] Ceará 1.9%,[83] Maranhão 1.1%,[84] Rio Grande do Norte 0.9%,[85] Paraíba 0.7%,[86] Sergipe 0.6%,[87] Alagoas 0.5%[88] and Piauí 0.4%,[89] num overall total of approximately 13.2%.
BMW announced in December 2011 plans to set up a plant in São Paulo, and by 2014 Chinese manufacturer JAC Motors was to officially start production on the assembly line being built in Bahia state.
