Seven out of 10 industries have difficulty buying inputs, says CNI

Movement in the port of Santos: industries have difficulty receiving inputs due to global warming demand | Photo: Ricardo Botelho / Ministry of Infrastructure.

Difficulties in the supply of inputs and raw materials affected an average of 68% of companies in the mining and construction industries in October 2021, according to a survey by the National Confederation of Industry (CNI). The percentage is slightly lower than in February of this year, when 73% of businesses reported the problem. Despite the slight drop, the situation is quite complicated and more than half of industries believe that this lag will not end until April 2022.

More than two-thirds of companies said that even in negotiations with a higher value than usual, it is more difficult to obtain inputs in the domestic market. This problem affects 90% of the footwear industry; 88% of leather industries, 85% of furniture manufacturers; 79% from the chemical industry; 78% of clothing companies and 78% of forestry companies, in addition to 77% of computer hardware and electronics industries and 76% of beverage sector, for example.

Among the sectors that depend on imported inputs, 18 of them also reported the same problem: the difficulty of purchasing the goods, even if they decided to pay more. The most affected sectors were: pharmaceuticals (88%), machinery and electrical equipment (86%), clothing (85%), plastics (84%), cleaning and perfumery (82%) , textiles (81%), furniture (80%).

According to CNI’s head of economic analysis, Marcelo Azevedo, there is a hole in industrial production that has not yet been resolved. “The October industrial survey showed an inventory adjustment, this is an important condition, necessary to solve the problem, but it is a first step. And this adjustment has yet to be completed for a number of sectors.” , he explains. global demand for a series of products, with countries returning from crisis. These factors continue to cause tensions in production chains and the scarcity of various inputs.

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