Eng.

José Carlos de Oliveira Lima

FIESP Vice-President
CONSIC President (Superior Council of the Construction Industry)
 The Production Chain from
the construction industry,
coordinated by the Department of
Civil Construction - DECONCIC,
FIESP, proposes and implements
actions for the development of
industrial competitiveness and
technological innovation in the
Construction sector.

2
The Production Chain from the construction industry represents
12.2% of the Brazilian GDP

Construction Material Other Material

2.9% 0.2%

Services
Machines and 0.5%
Equipment Projects (engineering and
architecture)
0.3% Real Estate Activities
Property maintenance

Construction
8.3%
Buildings
Heavy construction
Source: LCA Consultores
 BRAZIL 2022 – Planning, Construction, Growth
CONSTRUBUSINESS 2010 – BRAZILIAN CONSTRUCTION CONFERENCE
 State Plan – Sustainable Development of the Sector
 Special Edition: with technical studies from Consultancies LCA e FGV – themes: Housing and Infrastructure
 Date: November 29th, 2010 - for authorities, business leaders and journalists
 Goal: Analyze current situation, identify barriers and investments propositions
 Forecast until 2022 : position Brazil with the 5 largest economies worldwide
Main Participating Authorities

Michel Temer Guido Mantega Miriam Belchior

Brazil Vice-President Minister of Finance Minister of Planning

Forum to debate socioeconomic development

 MACROECONOMIC SITUATION
1999 2011 2022
10 YEARS AGO TODAY Future needs require
action today

 Asia and Russian crises  High international liquidity  Large demand in housing
contaminate emerging and all infrastructure sectors
markets  International reserves
equivalent to total external  Transport
 Brazil: Fixed exchange debt
rate system is  Sanitation and Solid Waste
unsustainable  Government stimulates
Fonte: LCA Consultores.

internal demand  Urban transport

 Uncertainty
 Internal consumption is a  Energy
 Investment environment factor in sustained growth
risky in Brazil  Telecomunications
Conjuntura macroeconômica
OPPORTUNITIES

RESOURCES
 Resource Availability
 Large opportunities in investment
(economic growth, 2014 World Cup
& 2016 Olympics)

BRAZIL IS IN A
PARTICULARLY
POSITIVE MOMENT
HOUSING
 HOUSING – DIAGNOSIS
Brazil Age Group Pyramid, 2010 & 2022

2.3%
More
than 75 3.4%
4.0% 5.8%
6.9% 10.1%
11.2% 12.6%
13.9% 15.7%
16.8% 15.7%
12.5% 11.4%
10.2% 9.1%
12.5% 9.1%
9.7% 7.2%
2010 2022

Fonte: FGV Projetos

 The expansion of the classes C, B ​and A, in recent years should
continue. The country has witnessed a very positive moment in terms
of reducing inequality and increasing income.

Social Mobility
Social Classes
Million of People

* FGV Projection Source: Brazilian Central Bank / FGV

 HOUSING DEFICIT =
5.8 MILLION DWELLINGS

13.7% 34.9%
Nord-East
North

4.5%
Center-West
37.7%
South-West
Brazilian Population: 9.2%
193 million people South
Source: Ministério das Cidades. Data presented at the
4th National Monitoring Report. The
Millennium Development Goals - March/2010.
 HOUSING - GOALS
Housing Needs

2,640,000

3,627,284
Source: FGV Projetos

17,222,469

Dwellings to new families

Goal by 2022:
Dwelling improvement
Requires more than
Cohabitation reduction
23 million dwellings
 HOUSING - GOALS
Housing Needs

Average of
* U$ 32,3 bln
5.80% of the
GDP
Fonte: FGV Projetos

* U$ 119,9 bln

* Annual Average

In new dwellings
Goal 2022:
In renovations
Requires more than
US$ 1,8 trillion in investments
 HOUSING

Evolution of Housing Financing

FGTS + SBPE / Savings (in R$ billions)
200

180

160

140

120

100

80

60

40

20

-
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

FGTS SBPE Total Resources (C=A+B)

)

Source: Caixa Econômica Federal & ABECIP

CONSTRUCTION operating at BOVESPA
Geographic Extension of Activities
LABOUR
INFRASTRUCTURE
 INFRASTRUCTURE

Brazil’s worldwide position from 139 countries

41º Logistics
76º Cellular phones
82º Customs Regulations
87º Railway
93º Airports
105º Roads
123º Ports

Source: World Economic Forum

 INFRASTRUCTURE- DIAGNOSIS
General Infrastructure Quality
Brazil Average Worldwide
5.1
4.5 4.7
4.0 4.3
4.0
3.2
2.9 2.9

Source: GCR World Economic Forum – 2010 - 2011

1.9

ENERGY AIRPORTS ROADS PORTS RAILWAY

 INFRASTRUCTURE - DIAGNOSIS
General Infrastructure Quality

5,7
4,5
4,3
3,8 3,7 3,6 3,6 3,5 3,5 3,3
3,1
2,4
Average Mercosur

Paraguay
World Average
Uruguay

Venezuela
Brazil

Colombia

Argentina
Peru
Chile

Ecuador

Bolivia
Between 1 and 7.
Source: GCR 2010-2011 – World Economic Forum

Source: GCR World Economic Forum – 2010 - 2011

 INFRASTRUCTURE - GOALS US$

562
BILLION

241 226
BILLION
BILLION
59 121
BILLION
BILLION
Transport Energy Oil & Gas Telecommunication Sanitation
 INFRASTRUCTURE - GOALS

Total investment
MORE THAN 1,176 TRILLION DOLLARS

Transport Energy Oil & Gas Telecommunication Sanitation

 BNDES DISBURSEMENT OF
INVESTMENT IN INFRASTRUCTURE
BNDES Disbursement in infrastructure
In % of GDP
1,6
1,4 1.5
1,2 1.3
1.0
1,0
0.8 0.8 0.9 0.8 0.8
0,8 0.7 0.7
0.6 0.5 0.6
0,6 0.4
0,4 0.3
0,2
0

2009*
1997

2004

2007
1995
1996

1998
1999
2000
2001
2002
2003

2005
2006

2008
*12 months terminates in November

Source: BNDES & IBGE. Elaboration: LCA

OPORTUNITY
LARGE SPORTING EVENTS
2014 WORLD CUP
OLYMPIC AND PARAOLYMPIC GAMES
 TRANSPORT

By 2022, investment into transport should

reach more than US$ 410 billion

2010 - 2014 2010 - 2018 2010 - 2022

Public 50,769 Public 58,176 Public 66,123
Private and Mixed 41,991 Private and Mixed 108,792 Private and Mixed 175,052
In million of Dollars

Annual average of investment:

US$ 18,8 billion
450

400
TRANSPORT
350

300
Private and mixed
250

200
Public

150

100

50

-
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Today, for every US$ 1.00 By 2022, this will reach: for every
of public investment, there US$ 1.00 public investment, there
is US$ 0.28 of investment is US$ 3.35 of investment from
from private and mixed private and mixed sources.
sources.
 POWER
Expansion through stimulation of
energy efficiency

2010 - 2014 2010 - 2018 2010 - 2022

Total 87,104 Total 156,787 Total 226,470
In million of Dollars

Average Annual Investment Total accumulation 2010-2022

US$ 18,9 billion US$ 226 billion
The Brazilian energy is one of the most
expensive in the world,
when it has everyting to be the cheapest.
__________________________________
This can change. That must change.
_________________________________________________________

Demand your rights. Subscribe to the

manifest at the website, demand, discuss
the problem on the internet.

If nobody does anything, everything will

continue as it is: few winning and Brazil
losing
 OIL & GAS

Pre-salt requires large resources

2010 - 2014 2010 - 2018 2010 - 2022

Total 216,038 Total 388,914 Total 561,764
In million of Dollars

Average Annual Investment Total accumulation 2010-2022

US$ 44 billion US$ 561,7 billion
 TELECOMMUNICATION

Modernization and expansion of user services

2010 - 2014 2010 - 2018 2010 - 2022

Total 42,367 Total 50,015 Total 58,823

In million of Dollars

Average Annual Investment Total accumulation 2010-2022

US$ 7,7 billion US$ 100 billion
 SANITATION

Universal access as a realistic goal

2010 - 2014 2010 - 2018 2010 - 2022

In million of Dollars

Own Funds Operators 13,2 Own Funds Operators 26,5 Own Funds Operators 39,7
Financing 13,2 Financing 26,5 Financing 39,7
Fed. Gov. Budget 11,6 Fed. Gov. Budget 23,3 Fed. Gov. Budget 34,9
Others 2,2 Others 4,5 Others 6,7

Average Annual Investment Total accumulation 2010-2022

US$ 10,1 billion US$ 121,1 billion
 WORLD CUP OPPORTUNITIES
Mobility and urban infrastructure
Civil
CONSOLIDADED IMPACTS FROM THE WORLD CUP construction
a) Impact on total demand
(Brazil spending related to the World Cup) US$ 17,4 billion Food and
 Investiment US$ 13,21 billion beverages
Economy will  Operational expenses US$ 0,69 billion
produce additional  Visitor spending US$ 3,49 billion
Electricity, gas, water,
US$ 83,5 billion: b) Impact on domestic production of sewage &
The World US$ 66,34 billion
goods and services urban cleanup
Cup will
c) Impact on income
produce a US$ 37,34 billion
(income generated from item A)
cascading Business
d) Impact on jobs Services
effect on US$ 2,13 million
(occupation-year from item A)
investment in
the country e) Impact on tax collection US$ 10,66 billion Information
services
SECTORS THAT WILL BENEFIT THE MOST
(ECONOMIC ACTIVITIES WITH THE GREATEST INCREASE IN PRODUCTION)
Tourism
and
hotels
 WORLD
OPORTUNIDADES CUP
COPA OPPORTUNITIES
2014:
MOBILIDADE E INFRAESTRUTURA URBANA
Mobility and urban infrastructure

World Cup Reurbanization

Investment 1.669,00

Information
In million of Dollars Technology
181,76

Roads Fan Parks

847,66 119,9

Media Estates Hotel Park

3.829,41 2.720,26 1.861,13

IMCs & IBC

108,53

Security
998,46
Airport
713,96
Energy
165,01
 WORLD
OPORTUNIDADES COPA CUP2014:
OPPORTUNITIES
IMPACTO SOCIOECONÔMICOS
Mobility and urban infrastructure

258
19,112
(1.4%)
446
391 6,265
Fortaleza (7.1%)
26,866 Castelão
(1.5%) Manaus Natal
Vivaldão Cidade das Dunas
222
Recife 16,9
Cidade Copa (1.4%)
Brasília Salvador
351 Estádio Nacional Fonte Nova 368
6,170 Cuiabá 20,871
(5.7%) Verdão (1.8%)
Belo 422
Investment Map 356
78,050
Horizonte
Mineirão
29,838
(1.4%)
TOTAL
In millions

& their impact (0.5%)

Curitiba
Arena da
São Paulo
Itaquera 581
108,982
4.224
617,838
(0.7%)
Direct Impact
on GDP
on regional 202 Baixada
Rio de janeiro (0.5%)
29,505 Maracanã
(0.7%) Municipal GDP

GDP Porto Alegre 425 2010

Beira-Rio 249,886 Direct Impact
(0.2%) (% of GDP 2010)
Current Restoration 199
Source: Ernst & Young Valor
Situation: Construction 26,109 aproximado
* Not yet defined between the phases (0.8%)
Mineirão, Independência and Arena do Jacaré
 OLYMPIC OPPORTUNITIES 2016
Main sector benefits

Main sector benefits

Civil construction

Real Estate Services and Rentals

10%
6% Business Services
6%
5% Oil & Gas
Other sectors
63% 5% Information services
5%
Transport,
Storage and mail
INTEGRATED PRODUCTION INVESTMENT
 INTEGRATED PRODUCTION INVESTMENT

CONSTRUCTION SITE - USE OF PRE-MOLDED SYSTEMS

SHOPPING CENTER SPORTS CENTER

 ROME / ITALY – JAN/11
Seminar organized by the Italian Institute for Foreign Trade (ICE)
Business Opportunities in Brazil - World Cup and Olympics
ICE / CONFINDÚSTRIA / FIESP - BRAZIL
May 16 & 17th 2011
 BATIMAT - PARIS
International Construction Exhibition – November 7 & 12th 2011
 SORBONNE / PARIS
University of Paris 1 - Panthéon

Visit to Brazil from Prof. Guillermo Hillcoat

Director of the Chair of the Americas

Visit to the University in Paris

Jan/11
 BERGAMO – MILAN – TORINO
Mission Business – May 8-14th 2011

Giuliano Lengo Diretor General from the

Centro Estero per I’Internazionalizzazione

Tom Dealessandri
Mayor of Torino Delivery of official Brazilian football
jersey for Senator Gilberto Bonalumi and
Andrea Bonalumi
CONSTRUCTION MONITORING
www.observatoriodaconstrucao.com.br
 ACKNOWLEDGMENT

Paulo Skaf
 President of Fiesp, Ciesp, Sesi & Senai
 Federation of Industries of the State of São Paulo
 Center of Industries of the State of São Paulo
 Industry Social Services
 National Service of Industrial Learning

45
 COMMITEE – DECONCIC/FIESP

Dr. Carlos Roberto Petrini

 Director of DECONCIC/FIESP
 Executive President of the Sinaprocim / Sinprocim

Dr. Pedro Rinaldi

 Associate Director of Oliveira Lima Adv.
 Official member of the Young Entrepreneurs Committee – CJE /
FIESP

46
 COMMITEE – DECONCIC/FIESP

Claudinei Florencio
 Manager of DECONCIC / FIESP

Karina Vieira Dias

 Analist of the Industrial Construction Planning of the DECONCIC / FIESP

47
 Investment in construction is
development for the country
Considering this positive outlook in the
construction chain which we have the
honour of representing in Deconcic, Fiesp,
we reaffirm that government programs are
not enough for the sector.
Thank you!

www.fiesp.com.br/deconcic
deconcic@fiesp.com.br
www.observatoriodaconstrucao.com.br

48