42% of companies in Brazil feel the effects of the war -CNI survey

RIO DE JANEIRO, BRAZIL – More than 40% of Brazilian companies have felt the negative impact of the conflict in Ukraine, according to a survey conducted by the National Confederation of Industry (CNI). Click here for the full text of the survey.

The survey was conducted among business people from extractive industries and construction.

The negative impacts cited include increases in energy costs (58% in extractive and manufacturing industries and 72% in construction), commodity prices (64% and 61%), and interest rate increases (21% and 33%).

As for the future impact of the trade war, 42% said they expect no impact on their business over the next six months, while 58% of business owners expect a less severe effect.

According to the survey, the increase in inputs, raw materials, and products has hurt some trade sectors.

Business people in the biofuels industry indicated that 83% of inputs were more expensive than expected in recent months. For rubber product manufacturers, the figure was 86%.

There were also increases in the vehicle assembly, cleaning, perfumery, apparel, machinery, and beverage industries.

The survey shows that rubber production increased by 94%. The chemical industry, metallurgy, and construction also recorded a more than 70% increase in imports. The increase in the cost of imported inputs was also noted.

Companies also reported delays in the delivery of imported inputs and raw materials.

The solution sought is to find alternative suppliers, preferably national ones. According to the survey, 40% of companies in the raw materials and processing industry prefer Brazilian suppliers, while 29% are still looking for alternatives outside the country.

With information from Poder360

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