Textile industry design best margins next year

Faced with the prospect of improvement of retail and maintenance of the current level of costs, the textile sector hopes to improve margins in 2019. Leaders predict 3% advance of production next year. "We can estimate that revenues will grow around 7%, whereas physical production and price trends, taking into account projected inflation," said the President of the Brazilian Association of Textile and Clothing Industry (Abit), Fernando Pimentel in the press conference. "If there is no new cost pressure, it will be possible to improve the profitability of the companies, so that they are more healthy for invest." The Managing Director of the IEMI market intelligence, Marcelo Prado, believes in 2019 the sector will be less pressed by raw material costs. "It's not the perspective oil pass for $ $100, the global economy is weaker in General. It takes an increase in space. " Patel explains that in 2018 the companies in the sector were affected by the rise of synthetic and cotton and the market did not allow the transfer total of such costs. "The year was tight for all the links. Companies were sacrificed. There were also price impact dyes and electricity. " The Manager believes that the pressures will be maintained at the same level in 2019, but the improvement of the economy should allow a relief on the shore. "Increasing productivity and absence of scares in the area of costs, it is possible to reset the margin. This year many companies operated in prejudice. We don't expect a stress so great in 2019. But it's still in the realm of expectation. " Among the risks to this positive scenario, are not achieving reforms by the new Government and impacts of a trade war between the United States and China. "We're going to have a great crop of cotton. But the price is not driven only by demand and supply. The trade war can cause shifts in preference for the purchase of the commodity, "he says. The Executive Director of the Brazilian Textile retail Association (Abvtex), Edmund Lima, estimates that sales will be better in 2018 than last year. "Black Friday was good, the anticipation of Christmas is a better result. We believe that the flow of consumption should increase in the coming weeks. " PRADO believes tighter stocks in retail, plus this improvement in consumption, can generate a momentum for the sector at the beginning of 2019. "The retailer felt that need more product." In relation to investments, which were stationed on the electoral uncertainty, Prado evaluates that they should not return to abrupt way. "It's not going to be at a gallop. There are positive signs, but it's still not a certainty. " And balance sheet projections Pimentel estimates that the year of 2018. "There is a feeling that the GDP down. The reasons were clear: the Teamsters ' strike, electoral uncertainty and the sum of other factors that have prevented projections optimistic if achieved. " The leader points out that until April the indicators were positive. "The strike changed the entire panorama. Also there was no pocket for everything. The consumption of products with higher added value has grown, driven by improved credit and for the World Cup. The consumer does not choose us. " On Wednesday (12), the National Confederation of industry issued a projection of GDP growth of 2.7% in 2019. "The most optimistic about 3%, but we we dropped 2.5% in Abit," said Patel. The entity provides for the dollar in the range of R $3.80. "But if the reforms move forward, real can be valued, which brings pressure from imported", highlights the leader. The forecast is that imports have advance of 5.5% next year, while exports will have growth of 4%. Another negative point was the generation of jobs in the sector. "We were making a recovery in 2017 and 2018 started with a positive expectation, but unfortunately we're closing in negative terrain," said Patel. The estimated balance disclosed by the entity was 27000 vacancies closed in 2018. The projection for 2019 is that 20000 jobs are created. "We won't be able to recover what has been lost this year."