Insight

Welcome to the 2024 Janus Perspective, a unique feature that includes a wide cross section of global fastener business leaders. Named after the Roman God 'Janus' – who had the ability to look to the future and to the past, and was often depicted with having two faces – this feature brings together thought leaders from every facet of the industry, from around the world, to give us their retrospective on 2023, as well as prospects and challenges for 2024.

Sergio Milatias, editor of Revista do Parafuso

When living in a country with more than 203 million people it is important to firstly discuss the economic scenario. As everybody knows, Brazil is a traditional global export player of commodities, agribusiness products and iron ore and is one of the largest economies in the world. This has led to its Gross Domestic Product (GDP) standing at a total nearing US$1.98 trillion. 2023 saw a slight increase in GDP to 3.3%, a 0.1% increase when compared to 2022 (3.2%).

A fundamental part of Brazil’s GDP is the industrial sector, which represents 11.3% of the total GDP and is one of the key sectors where fasteners are concerned. Therefore, by monitoring the markets involved within the industrial sector we can get a good understanding of the current situation with the Brazilian fastener market. 

Undoubtedly the main market for fasteners within Brazil is the automotive sector, with around 30kg to 40kg of fasteners used per passenger car. Unfortunately, the current Brazilian car production is in stagnation, with only 2.359 million units produced in 2023, significantly down on the 2.944 million units produced in 2019 – according to stats from ANFAVEA (the local Brazilian automotive manufacturers association).

In 2024 the association predicts a 4.7% rise, but there are no signs that the numbers will get anywhere near the 2019 figures, at least not for the next three or four years. There are a multitude of reasons why there has been this slowdown, of course the Covid-19 pandemic would have been a factor, but consideration has to also be given to the fact that consumer behaviour is also changing – with the younger generation happier to use ride sharing Apps, rather than invest in a car.

The automotive slowdown is also reflected in both bus and truck production. After reaching 193,480 units in 2022 the figures are predicted to not overcome 123,000 in 2023 – a fall of 36% – but with suggestions it could reach 160,000 in 2024 according to ANFAVEA. 

Brazilian fastener manufacturers

As not all fasteners made in Brazil are used within the automotive sector, it is important to discuss ‘first hand’ the situation within other markets as well, such as furniture, construction, etc. I therefore spoke to several companies about how they progressed in 2023 and plans for 2024.

Ézio Ruocco, vice-president at Belenus, reported: “Our operations abroad are progressing well – little by little. However, sales to Argentina suffered a drop of two thirds in 2023. Overall, Belenus’ revenue fell 18%. If I had to rate the year 2022, I would give it a score of 7 out of 10. However, if I had to rate 2023, I would only give it a 4 out of 10, as it was year in which our stocks became high, but prices fell 19%.”

Having said that, Ézio believes that due to market behaviour at the end of 2023, he is able to predict 5% growth in 2024.

A traditional manufacturer of fasteners for the industrial vehicle sector – from light to heavy, as well as tractors, machines and road and agricultural implements – Hassmann evaluated 2023 as a year of strong retraction, falling 19%; while in tonnage the retraction was around 20%, explained Jaison Tomasi, commercial manager at Hassmann. He added: “However, it was an adjustments time for supply chains, enabling Hassmann to better organise production factors and prepare for a new growth cycle in 2024 onwards. We also continued to pursue advanced exports, taking advantage of the favourable moment for Brazil.”

Another important fastener manufacturer within the Brazilian automotive sector is METALÚRGICA FEY LTDA, who will close 2023 with a 5% drop, which it says is a reflection of the agricultural and heavy automotive market. “After two turbulent years, 2023 was a time of recovery in service performance and the external market,” declared Edison Boettcher, CCO at METALÚRGICA FEY. “In addition to expecting a slight recovery, we are optimistic about new projects.” 

A Brazilian fastener manufacturer that did experience growth in 2023 was JOMARCA, who has a strong connection with the furniture sector, with the company growing 11% compared to 2022. “For 2024, we are predicting growth in volumes, but the prices to be charged are still unknown, I estimate around 5% to 6%,” explains Ricardo M. Castelhano, CEO at JOMARCA. “My rating for 2023 is 8 out of 10, especially because the current federal government has been resilient to internal problems. However, not adopting tax fastener imports to level our competition versus Asian fasteners is a giant wrong. In the current scenario, a simple import office can replace an entire factory in Brazil.”