Research with companies showed that most report problems in receiving components; 15% foresee partial shutdown of production
A new survey carried out by the Brazilian Association of Electrical and Electronics Industry (Abinee) concerning the impact of the coronavirus on the production of the electronics sector indicated that 57% of the interviewees have some type of problem in receiving materials, components and inputs from China.
The result is 5% higher than what was seen in the previous survey conducted two weeks ago. The situation is mainly observed among manufacturers of products such as cell phones and computers.
According to Humberto Barbato, the executive president of Abinee, the new survey indicates the worsening situation of industries that depend on external parties. He also states that “The moment is delicate and we should have several stoppages from now on”.
But he considers that, for the time being, there is no risk of lack of finished products in the Brazilian market, such as cell phones and computers. “The problem is not more serious because we have the local production of these products”, he emphasizes.
According to the survey carried out by Abinee, 4% of those surveyed partially stagnated their factories. Other 15%s have already scheduled stoppages for the next few days, most of which are also partial.
The survey indicated, despite the impact on supply, that 54% is still not scheduled to stop its activities. The decision will depend on how long the supply problems persist.
In the midst of this scenario, 17% of those surveyed opened that they should not reach the production forecast for the 1st quarter of this year. According to these companies, production in the period should be, on average, 22% below the projected. For half of the companies, however, the projections must be maintained; while other 33% stated that it is not yet possible to give this indication.
Research points out that companies should take, on average, a period of two months to regularize the pace of production, after the resumption of shipments of materials, components and inputs from China.
The survey had the participation of about 50 industries from different areas of the electronics sector.
Currently, 42% of the components used by the electronics industry in Brazil come from China, totaling US$ 7.5 billion in imports in 2019.
It should also be noted that the other countries in Asia were responsible for 38% of imports of electrical and electronic components last year. Therefore, the Asia region represents 80% of the origin of the country's electrical and electronic components.
