Abrameq: Machinery Industry claims industrial policy

The Associação Brasileira das Indústrias de Máquinas e Equipamentos para Couros, Calçados e Afins – Abrameq, (Brazilian Association for Machinery Industries and Equipment for Hide, Footwear and Similars, was created in 1992, incorporating a segment that currently, in our country, consists mainly of small size companies. The Abrameq's main objective is the development of technology and commercial promotion of the these companies, consolidating their presence in the internal market and conquering in the international market the concept of manufacturer of high quality products. Its current president, Raul Ludwig, is ahead of the Association for the last five years and in an interview granted to Courobusiness, has explained the ABrameq economic policy, its current actuation and the problems experienced during the year of 2006.

In a presentation made by the Associação, Raul Ludwig explained that one of the strategic objectives of Abrameq  is the consolidation of the Brazilian machinery industry for the hides and footwear in the international market.

He believes that the segment should venture a bit more to expand its commercial space. “With this vision, we are looking for distant markets, with high potential, and different cultures. We are trailing this path with the necessary support from Apex-Brasil and the even more than ever required collective effort of our companies.

The Abrameq actions - directed to export promotion - together with Apex support, include participation in international fairs, prospection of foreign markets with potential for the Brazilian manufacturers of machinery, publication of the Machine Directory, which contains all the companies of the segment with their products in the Spanish and English languages.

In addition to this, we can highlight a program resulting from APEX - Agência de Promoção de Exportações support: the “ Quality Seal for Machines covering Hide, Footwear and Similars”, in which the objective is to value, recognize and communicate to the global markets the quality of the Brazilian machines directed to manufacture of hide, footwear and similars, as well as to communicate and stimulate, before the segment manufacturers, the quality, excellence and ongoing improvement culture.

 

COUROBUSINESS: Which were the major challenges experienced by the machinery segments during the first six months of 2006? And which are the possible challenges to be faced through the end of the year?

LUDWIG: The first 6 months of 2006 included important challenges. First of all, we experienced a difficulty in continuing our insertion in the foreign markets in a very unfavorable environment due to the devaluation of the dollar as compared to the real. We have invested heavily in the development of products to be competitive with the best available in the world under the technological point of view. And this was giving us the possibility to grow in a consistent manner, as important suppliers in the global market of machinery for hides and footwear. The exchange rate reality has eliminated great part of our capacity to compete in the international market. And we are not foreseeing any improvement in this scenario, as no important changes in the exchange rate issue are expected. On the other hand, for the same exchange rate issue, we are spending great efforts not to lose the share in our most traditional market which is the local market. Up to the present moment we are being successful because there is a well established assistance and strong trust relationship with our Brazilian customers. However, were are struggling hard to maintain ourselves competitive in the internal market.

 

COUROBUSINESS: The footwear sector is complaining of the drop in exports, mainly due to the low value of the dollar. The component segment reported a strong reduction in its growth. How does the issue related to valorization of the Real affects the machinery segment?

LUDWIG: This is another challenge in our segment. When the footwear segment experiences difficulties in its exports, it reduces its investments in capital goods. This is a natural trend. And this also reduces the purchase of our products. For the machinery segment, it is very important that the hide and footwear chain links are in good position, because 80% of our products are designed to Brazilian companies of these segments.

 

COUROBUSINESS: The footwear segment is experiencing a strong impact in its export economy with the expansion of the Chinese market. Repeating the words of the Abicalçados president, Élcio Jacometti (in an interview given to Courobusiness, Abril/2006), “The scenario couldn't be worse than that”. Which is the machinery segment perspective as related to China?

LUDWIG: It is our capacity to actuate in an agile and creative manner to satisfy the requirements of our customers otherwise we would be facing serious difficulties as related to the Chinese products that are strongly being introduced. The importance of the vicinity and the existence of the same cultural level has been helping us in maintaining ourselves as preferred vendors of the footwear Brazilian manufacturers.

 

COUROBUSINESS: To dribble these difficulties, the footwear segment is adopting a strategy to sell to high added value markets. The component segment, through its president Luís Cláudio Amaral, agrees with the measure adopted and continues saying that it is important to find other models of competitiveness. Which are the machinery segment strategies?

LUDWIG: We are working with this vision for the last few years. In partnership with Apex-Brasil, we have developed the Abrameq Quality Seal which is a tool to promote the quality of our products. The line of actuation of our association is to contribute so that our companies may invest more and more in the quality levels, even though the Brazilian economic scenario does not stimulate such a behavior. But we believe in the capacity of our people to add value to our products. We can proudly say that we do participate with some intensity, supplying machines and equipment, to the Brazilian footwear industries that are successful abroad with higher added value products.

 

COUROBUSINESS: According to the component segment, there is a growing interaction among the segments of the chain. How does the machinery segment interact with the other segments? Is there a partnership program under negotiation?

LUDWIG: Abrameq actively participates in this process. And does this in several levels. We participate in the Competitiveness Forum, together with the Federal Government. We actuate in an integrated manner in projects with Apex-Brasil, optimizing resources. We develop articulated actions with the other links of the chain in defense of our activity. We can say that there is a very positive maturity in the relationships between the hide and footwear segments. And we are part of this process.

 

COUROBUSINESS: The data obtained from January through May 2006 have shown that in the footwear machinery industry exports exceeded imports with a positive balance of US$ 609 thousand dollars. On the other hand, the hide machines present a negative balance of US$ - 2,5 million dollars. How do you explain this behavior?

LUDWIG: This is a historical data. For several years we are experiencing a stronger presence in the supply to the footwear industries rather than to the hide industry. In this last segment, the Italians have an important tradition. However, we can say with great satisfaction that we have conquered space also in this segment thanks to a great effort, because the tanning machines require heavier investments than the footwear machines.

 

COUROBUSINESS: Does the segment intend to submit any claim to the governmental authorities over these next few months?

LUDWIG: Since last year, together with the other sectorial entities, we have been looking for measures that at least would minimize the effects of the drop experienced by the dollar as compared to the real. Unfortunately, we have not as yet received the expected answer. But we shall continue with our efforts and we hope that the government will note how much the country is loosing with this situation.

 

COUROBUSINESS: We are aware of ABRAMEQ's participation in the Feical during the month of July. We would like to know as related to the participation of the associated companies.

LUDWIG: Feical received a significant visitation. However, these guests were rather from the city and region than customers, this is common in regional events. In truth, we were expecting a stronger presence of customers. However, we should take into consideration that this was the first edition of the event.

 

COUROBUSINESS: What the segment would like to ask, suggest or claim from the candidates to the position of President of the Republic?

UDWIG: The most important is to suggest that a true industrial policy be in force in our country which would in fact allow long term actions and that would stimulate the productive activity. And to this effect, it would be fundamental to have in place the so long awaited tax changes. which if in effect, would require from the new government a significant efficiency in the use of public financial resources.

 

   

Revista Courobusiness - Edição nº 47 – julho/agosto 2006