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Electronics sector has 24% of manufacturers paralyzed, says association

by ace
Electronics sector has 24% of manufacturers paralyzed, says association

The coronavirus pandemic led 24% of electronics manufacturers in Brazil to partially or totally stop production, according to a survey by the Brazilian Association of the Electrical and Electronics Industry (Abinee), carried out with companies between 23 and 25 March.

  • Samsung factory in Manaus interrupts activities

Among those that are paralyzed, 42% have total paralysis, and the other 58% are with partial production. In the previous survey, released by the association on March 9, 6% of manufacturers had said they were paralyzed.

According to Abinee, the main problem now is the arrival of the pandemic in Brazil, which forced the adoption of measures by companies, and no longer the supply of materials from China, as presented in previous surveys.

According to the new survey, the supply problem, with inputs coming from China, has cooled: 51% of companies say they have problems receiving materials, down from 70% registered in early March. China is the main source of components in Brazil. The country is one of the main sellers of chips, integrated circuits and other parts and pieces that will become cell phones, washing machines, televisions and several other electronics in other countries.

With the change, 30% of the manufacturers said that they should not reach the expected production for the 1st quarter – in the survey it was 21%. These manufacturers expect 34% less production than initially projected.

Measures to contain disease

According to Abinee, the companies have stepped up measures to contain the spread of Covid-19. According to the survey, in administrative areas, 33% adopted a total home office, 53% have partial remote work and 14% did not adhere to the practice.

In areas directly linked to production, measures were adopted such as reducing the flow of people, such as rotation of employees, anticipation of vacations and collective vacations, reduction of working hours.

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