Earlier this year we highlighted the opportunity of selling and exporting machinery and equipment to South America, primarily Brazil. Many loyal readers contacted the sales team asking for more information on this hot topic, and whilst we are still compiling a definitive report, below is an insight into what we have ascertained to date.
For those wishing to sell machinery and construction equipment to Latin-American countries, the market is shrouded in some mystery as to what is acceptable and what is not, plus there are a number of market rumours about how to trade within the sector. Some say import restrictions are open to interpretation and certain criteria exists, however, from what Resale Weekly has ascertained the protocol says: Machines and models not available or manufactured in South America can be imported; Machinery used in the mining industry can be imported into South America; Machinery may be manufactured in the country or region, with global business partners, exemplified by JCB establishing its large assembly plant in Brazil.
The South American economy is extremely buoyant with international trade figures for 2011 showing Brazil achieving +5.1% sustained growth, coming a strong second behind Asia at +7.1%. The Middle East & Africa achieved +3.5%; South America +3.2%; Eastern Europe +2.5%; North America +2.0%; and Western Europe -0.5%. This strong Brazilian growth has helped it become the World’s sixth largest economy by nominal GDP and it’s widely expected to rise to fifth position in that table by the end of 2012.
Brazil is also one of the Worlds fastest growing markets for construction equipment, with 15% current annual projected growth. Large scale infrastructure projects underway include the construction of 5000 km of highways, while significant residential projects and various major sporting events (FIFA World Cup 2014 and Olympic Games 2016) coming to the country over the next few years are only going to add to this. Read More…