São Paulo – Companies participating in trade show Expo Revestir, in São Paulo, are enthused about the industry’s current status and forecast an increase of at least 30% in revenues this year. The main reason for the good mood is the booming construction industry, which, grew by 3.6% in 2011 according to the Civil Construction Industry Union of the State of São Paulo (Sinduscon-SP).
Fernando Argemiro, the marketing manager at ceramic tile manufacturing company Gail, says the company saw its revenues grow by 22% from 2009 to 2010 and 34% from 2010 to 2011. He believes the performance may well be even better this year. In fact, this is already the case at Expo Revestir, he says. “We are seeing a steady flow of visitors at our booth. This year is being better than 2011, because we also have many new products.”
The general manager for exports at Gail, Marlene Romano, claims the company is also growing as a result of its good performance on the foreign market. She remarks that the Middle East ranks among the most important export targets for the company.
“At a certain point in 2009, Saudi Arabia was even our leading [foreign] market. Our export performance was very good in 2008; then it decayed as the economic crisis set in, afterward it rebounded, but now it is shaken again because of the crisis,” she said. She also said the booming construction industry drives the company’s sales up.
Also, Itagres is expecting to post an increase of roughly 30% in revenues this year. For such, the Santa Catarina state-based company bets on sales of a line of tiles which mimics high-end marble. “We sell mostly to Dubai. Our clients there purchase the largest volumes of our Lumière line [which imitates the high-end marble],” said sales manager Paula Machado Isidoro.
Expectations regarding the Middle East are high because, according to Paula, the company’s performance at the Big 5 construction fair, held in Dubai in late 2011, exceeded those of previous editions. The company’s foreign sales revenues account for 6% of overall revenues.
Arabs
Eleven Arabs in the architecture, construction and engineering industries are now in Brazil, by invitation of the Brazilian Export and Investment Promotion Agency (Apex), backed by the Arab Brazilian Chamber of Commerce. They attended the fair on Tuesday and this Wednesday (7th). Some intend to do business with the exhibitors, such as the CEO of the Jordanian company Archisys, Jamal Naber.
“Brazilian products are great because they boast great quality, up-to-date design, and a high degree of functionality when it comes to our needs. The pricing is also great when compared to its European counterparts,” he said. The company’s executive manager, Baria Abu Ghosn, appreciated the product quality, but claimed that in some cases, the prices charged by Brazilians could be improved. She said Brazilian tiles offer “unique” features to their buyers.
One such feature is the fact that products may be “adapted” in size or colour to suit clients’ needs. Marlene Romano, of Gail, explains that for that reason, negotiation with a foreign client may last up to two years.
The business coordinator at the SEG Qatar company, Nasri Ayoub remarked that Brazilian products have the quality to compete with counterparts made in Spain, Italy and Turkey, which are his main suppliers right now. However, he claims the pricing will ultimately tell whether his construction company may buy from Brazil. “We must also consider that because of the distance, a Brazilian product will take longer to arrive than those from other countries,” he said.
*Translated by Gabriel Pomerancblum
