The Annual Survey of Construction Industry (PAIC) shows that, in 2007, the Brazilian construction sector  was formed by 110 thousand companies, which employed about 1.8 million persons, who made, on average, 2.3 minimum wages per month. Between 2006 and 2007, the value of construction services increased, in relative  terms, by 10.9%, and the subsector of residential construction, which is the most important in this sector, had nominal expansion of 13.9%.

In the South and Southeast Regions, despite the fewer number of employed persons and the reduction of salaries paid by construction industry since 2003, there was concentration of more than 60% of these two variables in 2007. PAIC 200 results are available on IBGE’s web site www.ibge.gov.br.

Construction companies were responsible, in 2007, for construction and other services amounting to R$ 128.0 billion, and had net operating revenue of R$ 122.7 billion, with 16.9% of the construction services performed and real growth¹ of 10.9% compared to 2006. A total R$ 51.3 billion of the amount invested were directed to the public sector, being equivalent to 40.1% of the total services performed, at a lower percentage than that observed in 2006 (42.5%).

In 2007, 110 thousand companies of the industrial subsector of construction industry employed over 1.8 million persons and had overall expenditure with employed persons of R$ 30.6 billion, out of which R$ 20.7 billion referred to salaries, withdrawals and other compensation, that is, a monthly average of 2.3 minimum wages.  

The expansion of the construction sector in 2007 was in accordance with the increase of Brazilian GDP (5.7%), with the performance of construction in GDP (5.0%) and gross formation of fixed capital (FBCF), which reached 13.5% and had the biggest increase since the beginning of the time series (1996).

In 2007, gross investments of construction industry in terms of fixed assets amounted to about R$ 5.1 billion. The acquisition of machinery and equipment was the main investment and it accounted for 44.2% of the total. In second place came expenditure on means of transportation (23.1% of the invested amount); purchases of land and buildings (furniture, personal computers and tools), which made up 11.4% of the total.  

The main construction item acquired was cement, which represented 27.4% of the value of products surveyed by activity, followed by asphalt (20.6%), concrete (20.5%), square bars (20.4%) and bricks (11.1%).

Between 2003 and 2007, the South and Southeast faced decrease of participation in wages and number of employed persons

In the comparison between 2003 and 2007, construction companies with 5 employed persons or more in the Southeast and South Region reduced their participation in terms of persons employed, salaries, withdrawals and other compensation, but remained being responsible for over 60.0% of these two variables relative to the country as a whole.  

The South Region presented the biggest decrease of participation both in terms of persons employed (from 15.3% in 2003 to 13.3% in 2007) and in terms of salaries paid (from 14.1% in 2003 to 12.2% in 2007).

Such decrease observed in persons employed was due to the reduced participation of Rio Grande do Sul, whose result changed from 6.4% in 2003 to 5.1% in 2007. Considering salaries paid, the participation decrease of the South Region was related to the figure of Paraná, since this state reduced its contribution from 4.7% to 3.9% in the same period. 

The reduction of participation of the Southeast and South Regions, between 2003 and 2007, may be seen as a result of the industrial development of the Manaus Free Trade Zone; of the establishment of new companies in the Northeast, attracted by financial benefits granted by state ;governments and of the continuous expansion of the agricultural frontier towards the Central West and North, which resulted in the establishment of agricultural industry in population growth and in urbanization, and eventually stimulated the occurrence of infrastructure and building services.  

Rio has highest real growth of construction salaries in the Southeast

The analysis of the average salary² paid by construction companies with five persons employed or more showed that, although the average salary has risen, in nominal terms, from R$ 761.76 in 2003 to R$ 955.08 in 2007, considering the number of minimum wages there was decrease from 3.3 to 2.6, due to rise of 33.8% obtained by the minimum wage, which changed from R$ 230.77, in 2003, to R$ 373.08, in 2007.

The Southeast remains presenting the highest salaries in the country, and whose average changed from R$ 850.11 to R$ 1,068.36, between 2003 and 2007, with real increase of 4.0%. This result was influenced by the states of Rio de Janeiro, which changed from R$ 940.75 to R$ 1,263.55 (real gain of 11.2%), Minas Gerais, from R$ 629.36 to R$ 821.49 (8.1%), and São Paulo, from R$ 919.23 to R$ 1,142.11 (2.9%).

In second place is the Northeast Region, with average salary of R$ 602.42 in 2003 and R$ 769.59 in 2007, with real gain of 5.8%. The real increment of salaries was mainly observed in Paraíba (25.0%), Sergipe (21.4%), Rio Grande do Norte (20.8%) and Pernambuco (18.0%). Bahia remains having the highest average salary: R$ 721.48 in 2003 and R$ 911.09 in 2007 (real gain of 4.5%).

The Central West also presented rise of the average compensation, from R$ 701.46 in 2003 to R$ 883.97 in 2007, with real gain of 4.3%. The Federal District was the main highlight, with real gain of 27.0% and the highest salary of the region (R$ 1,032.66).

In the South, the highest average salary was that of Rio Grande do Sul, which changed from R$ 653.10 in 2003 to R$ 922.45 in 2007 (real gain of 16.9%), above the average of the Region (3.6%), in which the state also presents the highest salaries paid.

It is also worth mentioning the North Region, which, in two years of analysis had the second highest average salary in nominal terms, with increase of 0.8%. The highlights were Amapá e Amazonas, which had real salary rise by 53.6% and 22.1%, respectively.

Construction industry in the North Region has highest productivity levels

In 2007, the national productivity level³ was, on average, R$ 76.2 thousand per worker. The North Regiojn had the highest productivity per person employed, both in 2003 (R$ 61.9 thousand), and in 2007 (R$ 81.8 thousand).By area, in 2007, the highest productivity acme Amazonas (R$ 106.5 mil).  It is also observed that Tocantins had, in 2003, average productivity R$ 3.7 thousand lower than the regional average and, in 2007, R$ 22.2 above the equivalent average figure.

The Southeast had, in 2007, the second highest average productivity level in the country, R$ 81.4 thousand per worker. The states with the highest productivity levels were Rio de Janeiro (R$ 97.1 thousand) and São Paulo (R$ 85.4 thousand).

In the Central west, Federal District (R$ 88.9 thousand) and Mato Grosso do Sul (R$ 81.2 thousand) had the highest productivity levels in 2007, and were above the regional average of R$ 80.7 thousand. The South Region, on the other hand, with productivity of R$ 73.2 thousand in 2007, was R$ 3.0 thousand below the national average; Paraná (R$ 77.5 thousand) was the only state in the South to present productivity above the regional average.  

With all its states presenting figures below the national average, the Northeast had, in 2007, productivity of R$ 61.3 thousand. The Federative Units which had results above the national average were Alagoas (R$ 72.5 thousand), Bahia (R$ 63.5 thousand) and Pernambuco (R$ 61.5 thousand).

Residential building increases by 13.9% from 2006 to 2007

In 2007, the value of construction services performed by companies with five persons employed or more increased 14.4%, in nominal terms and 8.6% not considering effects of inflation⁴.

The value of residential building and construction services increased 6.3% in nominal terms⁵, mainly due to the increase of residential building (13.9%), the product which most contributed to construction and was directly influenced by real estate credit.

The group of industrial and other non-residential buildings had nominal increase of 31.4%, affected by the growing number of commercial buildings (shopping malls, supermarkets, stores, etc.) with 143.2%; industrial plants (for refineries, steel industry, chemical industry and other) with 172.5%; and mining plants, with 179.8%.  

The value of infrastructure construction services, the most important one to construction, was 13.5% higher than in 2006. The main positive impact came from streets, squares, sidewalks or parking lots (with increase of 56.0%). It is also worth mentioning (oil ducts, gas ducts, mineral ducts), with 42.6% of increase; nuclear and thermoelectric stations, substation and plants (82.5%) and medium or long distance electricity and telecommunications systems (35.1%).

Finally, the group other services increased 6.1%. The main positive contributions came from assembling of metal structures (96.6%), gas, sanitary and hydraulic systems (16.9%) and assembling and disassembling of shoring systems, scaffolds, bleachers, footbridges and other structures (13.6%).

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 ¹ Deflating was done through the index of the National System of Costs Survey and Indexes of Construction  (Sinapi), calculated by IBGE, which changed by 5.38%.

 ² The calculation of the average monthly salary was done by dividing the sum of salaries, withdrawals and other compensation by the number of persons employed, and then dividing this result by thirteen.

 ³ Productivity in construction industry, defined as the value of building or construction services performed divided by the number of employed persons, has the objective of measuring the effectiveness of activities in this sector.

 ⁴ According to the deflating through the National System of Costs Survey and Indexes of Construction - SINAPI, calculated by IBGE, there was increase of 5.38% in 2007.

 ⁵ The choice was to analyze the evolution of the value of construction products in nominal terms, since the National System of Costs Survey and Indexes of Construction - SINAPI, calculated by IBGE, is not detailed by type of service performed.