BRAZIL FOOTWEAR. Production would drop 30% in 2020
Due to the crisis situation that the arrival of the Covid-19 has generated, slowdowns in footwear production are registered and negative variations are expected for the rest of the year.
In the framework of the Scenario Analysis meeting held with the presence of businessmen, leaders and technicians, in mid-May, from ABICALÇADOS reported that, in the first three months of 2020, 10% less production was registered in the footwear sector, compared to the same quarter of 2019. Punctually March had a 29% retraction.
In turn, projections indicate that in April, footwear manufacturing would decrease by 70%, while it would be between -29.9% and -33.5% for the semester, taking into account the impact of the industry, due to the pandemic.
Finally, by 2020 it is estimated that between 191 million and 265 million pairs would cease to be produced, which would represent a contraction of 21% to 30%, according to Priscila Linck, coordinator of market intelligence for the association.
Until April, according to the ABICALÇADOS survey, 31 thousand jobs were lost due to the decrease in production. For the total of the year 2020, the estimates are that the sector will lose 57 thousand jobs, in case the crisis maintains its current rhythm.
Last December, the sector employed 269,000 people, an amount that may close at 212,000 at the end of 2020.
Regarding exports, shipments should fall between 27.3% and 30.6%, closing between 89 million and 80 million pairs sold abroad, the worst result since 1983.
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