Consumption and production of the textile sector disappoints stagnates in 2018

The textile sector had 1 2018 below expectations and projected that the year you're going to wind up with stagnation. Even year-end orders should not be enough to change the picture. "It was a frustrating year. We worked with a vision of growth of 3% to 4% and 5% to 6% in retail, but that is not consolidated. We should finish the year at zero to zero, at best, "said the President of the Brazilian Association of Textile and Clothing Industry (Abit), Fernando Pimentel. The leader points to several reasons for the negative performance. "The growth did not come for many reasons: the Teamsters ' strike, World Cup and credit improvement, which diverted for consumption of higher value goods, such as televisions. Nor can we ignore the weather since winter this year didn't have a constant cold and this affected the consumption of collections. " The CEO of Nilit, Paulo de Biagi, points out that after a good performance in the first two months of the year, there was a general halt on the market. "The exchange rate has exploded and there was a lack of raw material. The year will be one of the more negative years from 2014, in terms of financial results. " He explains that the volume of sales was not bad, but the costs have undertaken the margins. "The company grew, but the market does not. Remained stagnant. " Manufacturer of polyamide (nylon) yarn, the company faced the impact of the appreciation of raw material. "On behalf of environmental adaptation, China closed many factories, reducing the supply of polyamide. This price increase was boosted by the appreciation of the dollar, "Biagi account. He explains that companies had to reduce their costs, given the impossibility of making the transfer of price to the consumer. "We seek alternatives for raw material and we cut the cost of the plants through actions of productivity and energy efficiency." The commercial Director of CTM wires, Carlos Modolo, also evaluates the year as underwhelming. "The vast majority of customers had difficulties due to events such as the truck drivers ' strike, World Cup and elections. These three factors, plus the exchange rate issue, affected the market. " According to Modolo, with the exception of cotton, all inputs impacted strongly the dollar. "The beginning of the chain suffers, can't pass along the price to the next link, the knitting." He points out that the devaluation of the Brazilian real also brings a positive point. "Retailers tend to care less, focusing on national industry purchases and the chain gets more peroxide." Modolo points out that it would also be important to more balance on imports. "There should be more difficult to bring the product up and facilitate the entry of the raw material that does not exist here and machines and technologies for production." He also points out that the illegal imports continue to be a problem. "These products entering the country without collection and undermine the formal industry." The Executive declares that the company will not grow in 2018. "Unfortunately, not reached our goal." Biagi believes that expectations will be more positive 2019. "We were optimistic the political situation that happened, by the new Government's intentions to reduce deficit and carry out the reforms. But we don't expect any miracles, because the problem is big. " The Executive says that you have to wait to know what economic measures will be implemented by the next Government. "We will see what effects on debt reduction and generation of employment, making the economy spinning. We have optimism, but without euphoria, growth should not be very large, 1% to 2%. " Modolo provides that, with economic stability, the market will once again invest in 2019. "The economic drive reaches the entire chain."