Management Challenges Faced in the Brazilian Industrial Sector

According to the IPEA, the industry sector in Brazil seems to be on a recovery path. This is according to the results of an industrial thermometer used by the CNI (National Confederation of Industry). A total of five indicators out of the total nine have shown positive news on the performance in the period of the months of June to August. Flavio Maluf, the president of Eucatex, commented on the various challenges that afflict the Brazilian industry, and the changes that are gradually taking shape.

According to the businessman, the Institute of Applied Research (IPEA) has stated that the recessive cycle that has been affecting the Brazilian economy from 2014 (second quarter) is decreasing gradually. The recovery will be gradual and correlated to the labor market dynamics according to Leonardo Melo de Carvalho. Leonardo is the person who is tasked with signing the survey. The second quarter of this year has shown an improvement of 0.3% in the industrial sector. Flavio Maluf attributed the growth to the great production performance in the first seven months of 2016. Other factors include the humble course of import substitution and evolution in inventory adjustment.

As the investments have reached an optimistic scenario, it could be possible that the Gross Fixed Capital Formation (GFCF) will become a leading factor in the area of economic activity growth. GFCF represents the total sum of the private and public investments of the nation. Mr. Maluf remains optimistic that the recovery could take on bigger dimensions if at all there is an improvement in the confidence levels.

About Flavio Maluf

He is currently the president of Eucatex, a group he has been with since 1987. He is a mechanical engineering graduate from Fundacao Armando Alvares Penteado (FAAP), Sao Paulo. He went abroad where he worked and studied at the New York University (NYU). Flavio Maluf started off working in 1987 in the company’s trade area then the industrial area up to 1996. In 1997, Flavio Maluf assumed the company’s presidency after family and concerned parties agreed.