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Brazilian industry: tipping point

image credit: Rafael Herzberg
Rafael Herzberg's picture
Consultant energy affairs Self employed

Rafael Herzberg- is an independent energy consultant, self-employed (since 2018) based in São Paulo, Brazil* Focus on C level, VPs and upper managers associated to energy related info, analysis...

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  • May 4, 2021

Brazilian industry: tipping point

If the country wants to have a development lever in the industrial sector, it will have to review its strategy.

Labor, raw material, taxes and energy make up the bulk of its costs, since it is a sector, which is in Brazil, of low added value.

Labor: the cost for an industry is twice the salary paid to the employee, given all the mandatory social charges.

Raw material is generally backed by commodities. Prices follow international standards.

Taxes and energy in Brazil are very high compared to the BRICS (Brazil, Russia, India, China and South Africa), our competitors.

So: do we want to improve, or will we maintain the route of GDP loss (in relation to other countries)? Do we intend to "turn around this situation" or "let it go"?


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