Challenges of Investing in Brazil as Highlighted by Flavio Maluf

Eucatex a company established in 1951 is the first on to have in mind that it’s the only country that had environmental friendly policies. The company initially started as a manufacturing industry however, with years it has expanded to serving manufactures in large industries. Being a pioneer company in the field of construction was not a walk in the park as many may think. The uncertain times of economic depression in country were hard for the company. Flavio Maluf, the president of Eucatex says through Poderonline the secret of them soaring high despite the unstable conditions is efficient management. The management should also know how to invest more especially in the area of production. This is because the consumers look at the quality of the end product more keenly. Therefore, if a company produces poor goods they are assured of losing customers and converse holds the truth. Also advises that opportunities present themselves even in unstable conditions. The management has to be keen enough to be able to notice them.
Brazil is lucky because it’s one country that is strategically well located for business. Moreover, it’s hard to comprehend that it’s still difficult for the country to obtain credit. The interests rates charged in financial institutions are very high not to mention the high tax rates. Any business person will definitely tell you that, such an environment does not favor investment opportunities at all.

Taking the forest industry as an example, it requires very high working capital. Many entrepreneurs putt of the forest industry because they are unable to overcome the challenge of high working capital. Apart from the fact that the industry is the only one that can lease the land harvest is allowed after six years.

Some conditions especially the economic ones are not favorable for trade and industries. The mechanical engineer graduate further points out it’s the reason why no matter how much the professionals deem the best; making out in such a country is very hard.

The current technology, expanding business is not a hard thing the creation of partnerships is further enhanced. Maluf points out that there are solutions that are based on chance, these solutions are decisive. To increase competitiveness in the industry, the Brazilian professional has to take the advantage of technology. For instance the manufacturing industry has to update its equipment’s which is nearly 80% if they are to remain relevant in the market in the next five years.

Maluf foresees tough times in the Brazilian industry in 2015-2016. The only industries that will survive the hardships are the food and beverages industries. He advises entrepreneurs to hold onto their business saying tough times pass but not tough people.

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