From car mounts to party balloons, including footwear soles and house appliances, rubber is in almost every industrial activity. The performance of the rubber goods industry, which is the supplier for a number of different segments, is closely related to that of other industries.
Even with the sluggish Brazilian industrial activity in 2013 – the number of production work hours increased only 0.01% according to the National Confederation of Industry – the rubber industry increased its revenue and reached US$ 2.82 billion.
On one hand, the result is linked to the automotive industry’s performance, which ended 2013 with a record growth of 9.9% (3.7 million motor vehicles) over the previous year, according to the Brazilian National Association of Motor Vehicle Manufacturers (“Anfavea”). Currently, 51% of the rubber goods production is destined to manufacturing automobiles.
On the other hand, importation of finished rubber goods has been having an impact in the sector; in 2012 alone it rose to 12% - which contributed to deindustrialization, closure of factories and loss of workmanship, according to ABIARB – Trade Commission of Rubber Goods in Brazil.
Should the current macroeconomic prospect stay the same, the company estimates a nominal growth between 8% and 9% for the rubber industry in 2014, which, adjusted for inflation, has a real growth between 2% and 3%.