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| Paint&pintura | Jan/Fev2015
Growth toCome in the LongRun
The year beginswithmanydoubts, uncertainties, anda
lotof caution, too. After 2014 leftmuch tobedesired in
termsofresultsandeconomicgrowth, thepaint industry
now triesmakeup forwhatwasnot achieved.
In a brief overview provided as part of an exclusive
interview granted to Paint & PinturaMagazine, Dilson
Ferreira,executivepresidentoftheBrazilianAssociation
of PaintManufacturers (known for short inPortuguese
asAbrafati),saidthat2014wasaratherdifficultyear.“As
theeconomydeterioratedover theyear, it affectedour
business, interestratesrose,thedemandforourproducts
fell, theexchangerateboomed,andcostswentup.That
combination of factors made it a very tough year and
caused our results to beworse than expected in both
volumeandturnover.”AccordingtoFerreira,the industry
was basically affectedby threeeconomic variables: the
grossdomesticproduct(GDP), the interestrate,andthe
foreignexchange rate.
Now, forthisyear,Ferreirawarnsthattheneweconomic
team needs to take strategic measures if they are to
deliverquickly.“Wearewilling todoourpart,andwe’re
going to do a good job at it. Of course, we know it’s a
difficultperiod,andweneedtobestrictaboutmanaging
our resources, both as paint manufacturers and as an
association. Besides,wemusthaveconfidence that this
willbe justanothercrisis thatwillbeovercomesoon like
all others, andBrazilwill experiencegrowthagain.We’ll
be lookingnot somuch at 2015 aswewill 2016, so that
wecan seeamore invitinghorizon.”
In a clear, spot-on analysis, Ferreirawarns the industry
thatthisyearwillnotatallbeaneasyone,andthat itwill
onlyexperience significant growthagain if investments
aremade. “A stabilizedeconomymakes a countryattractive
for investmentand,with the foreignexchangevariablemore
constantandwithoutsurprises,enablesbusinessestoexport,
importandbalancecostswithdomesticproductsanddoesnot
lead tocost increases for rawmaterials. Lower interest rates
combinedwith increasedpurchasingpowermake consumer
durables attractive to buy on credit payment terms, which
adds demand. Accordingly, this combination of factors will
allow theGDP to start rising andpaint-consuming industries
to realize their veryhighpotential forgrowth.”
Themessage conveyed by Abrafati’s executive president is
thatacorrectionof theseeconomicvariables in thecourseof
2015will show results from 2016on,whilemaking 2015 itself
a challenging year. However, for 2016andbeyond, i.e. in the
long run,weexpect rapid, substantial growth,with thepaint
industry outgrowing the GDP, and the growing GDP itself
helping to set thebar evenhigher.
Enjoy!
LucéliaMonfardini
Interview -ABroaderHorizon
Witha longhistory in thepaint industry, Abrafati’sexecutive
presidentDilsonFerreiraprovidesanoverviewof themarket
for2014andexpectsgrowthforthenextfewyears.
The year 2015 beginswith the uncertainties associatedwith
thepoor results of last year. Toget an ideawhat lies ahead
for thisand thenext fewyears,Paint&PinturaMagazinehas
talkedfirsthand toDilsonFerreira, executivepresidentof the
BrazilianAssociationofPaintManufacturers,known forshort
inPortugueseasAbrafati.
Afterprovidinganoverviewoftheyear2014,Ferreirasaysthe
industry isgoing througha toughperiod.“Wearehoping the
new economic teamwill deliver quickly.We arewilling todoour
part,andwe’regoingtodoagood jobat it.Ofcourse,weknow it’s
adifficultperiod, andweneed tobe strict aboutmanagingour re-
sources,bothaspaintmanufacturersandasanassociation.Besides,
wemusthaveconfidencethatthiswillbe justanothercrisisthatwill
beovercomesoon likeallothers,andBrazilwillexperiencegrowth
again.We’llbe lookingnot somuchat2015aswewill 2016, so that
wecanseea ‘more invitinghorizon’,”saysFerreira.
Summarizing last year’s events and developments, Ferreira com-
mentson themain factors thatmade2014a ratherdifficultperiod.
“Inanutshell,astheeconomydeterioratedovertheyear, itaffected
ourbusiness, interest rates rose, thedemand forourproducts fell,
