Mining and quarrying industries have been leading the growth of the Brazilian industry between 2007 and 2011, increasing their contribution from 6.3% to 11.8%. That is mostly due to the increase in the production of iron ore, whose value of sales in 2011 (R$ 50.9 billion) outweighed that of diesel fuel (R$ 48.1 billion) for the first time since 1998. The product stood out especially in the North region - accounting for 17.7% of the value of sales in the region (R$ 20.1 million) - and in the South region - with a contribution of 2.9% (R$ 30.6 million). This is what the 2011 Annual Survey of Industry (PIA) - Enterprise and Product reveals; moreover, it shows that the Brazilian industry, with 4% more enterprises than in 2010, keeps responsible in 2011 for 68.2% of the industrial activity. But this time with a greater participation of large companies. The number of employed people also rose 3.0% from one year to the other. The manufacture of food products remained as the first-ranked in terms of added value  (difference between gross value of production and intermediate consumption)  in 2011 (12,6%), followed by the extraction of metallic minerals (9,9%). Just ten industrial activities account for more than 70% of the value added of the industry.

 This and further information on the Annual Survey of Industry – Enterprise 2011  (PIA-Enterprise) are available at https://www.ibge.gov.br/english/estatistica/economia/industria/pia/empresas/2011/defaultempresa.shtm. The data of the Annual Survey of Industry – Product 2011 (PIA-Product) can be accessed https://www.ibge.gov.br/english/estatistica/economia/industria/pia/produtos/produto2011/defaultproduto.shtm.

Number of enterprises grows 4% in relation to 2010

 In 2011, there were around 312 thousand enterprises with one or more employed persons, which accounted for 8.6 million persons, an average of 28 persons by enterprise. The number of enterprises was 4.0% bigger than in 2010, when they were 299,862. In addition, the number of employed persons increased 3.0% in one year (in 2010, they were 8.4 million).

The enterprises of the industrial sector recorded, in 2011, a net revenue of sales of approximately R$ 2.2 trillion, with an average of R$ 7.0 million by enterprise. The expenditure with personnel reached around R$ 319.2 billion, whereas the investments in fixed assets (enterprise's tangible goods) added up to R$ 162.9 billion.

The gross value of production and the intermediate consumption registered, respectively, R$ 2.1 trillion and R$ 1.4 trillion. As a result, the value added (difference between the gross value of production and the intermediate consumption) reached R$ 679.3 billion. The value of the industrial manufacture (difference between the gross value of industrial production and the operating cost of the industry) was at R$ 936.8 billion. The operating cost of the industry achieved R$ 1.0 trillion.

 Large enterprises account for 68.2 of the revenue of the Brazilian industry.

The total of net revenues of the industrial enterprises (all the gross revenues minus deductions as canceled sales, discounts and some taxes) reached R$ 2.2 trillion in 2011, led by the performance of enterprises with 500 or more employed persons and, consequently, of a greater production scale, which proceeded with the largest contribution to the Brazilian industry overall. In 2011, these enterprises generated a net revenue of sales of approximately R$ 1.5 trillion, 68.2% of the total, a greater figure than that of 2010 (67.4%). Comparing to the previous year, there was a virtual stability in the contribution of all the other enterprises, according to the ranges of employed persons.

Costs and expenses of the industries remain unchanged in 2011

The costs and expenses of the industries achieved R$ 2.2 trillion in 2011. The enterprises with 500 or more employed persons kept the greatest contribution to the total of the costs and expenses (69.6%, above the 68.2% rate of 2010), an expenditure of R$ 1.5 trillion.

The expenses with personnel reached 14.5%, a contribution similar to the one seen in 2010 (14.6%). The expenditure with the consumption of raw materials accounted for 42.5%, keeping the largest percentage in the structure of costs and expenses, even though inferior to the one seen in 2010 (44.3%). The cost of resale goods also posted a contribution gain (from 5.7% to 6.7%).

The direct costs of production accounted for a contribution of 7.2%, of which 2.7% were from fuels and purchase of electricity, and 4.5% from the expense with services rendered by third-parties and several types of consumption to maintain and repair machinery and equipment. In the other costs and expenses (29.1%), depreciation, amortization and exhaustion of fixed assets were at 3.2%; the estimate expenses to the payment of royalties and technical assistance, at 1.6%; and marketing expenses, at 1.1%. The other costs and expenses represented 23.2%.

Machinery and equipment get almost half of the investments

In 2011, the total of the investments made in fixed assets (enterprise's tangible goods) in the industrial enterprises reached R$ 162.9 billion. Considering enterprises with up to 29 employed persons, the value was of R$ 5.2 billion, approximately 3.2% of the total. In relation to the composition of the investments in the enterprises with 30 or more employed persons, the highlight was industrial machinery and equipment, which remained with the greatest contribution (46.3%), higher than that of 2010 (45.4%). The purchase of land and building posted a similar contribution between the two years, moving from 14.4% to 14.5%. The resources applied to transportation reached 4.3% of the total in 2011, whereas other acquisitions (furniture, desktop computers, etc.) accounted for 31.8%.

Ten activities responded for 70.6% of the industrial production

In 2011, the activities with the largest contribution to the total of the industry in terms of  value added were the manufacture of food products (12.6%); the extraction of metallic minerals (9.9%); the manufacture of coke, of petroleum products and biofuels (9.8%); manufacture of motor vehicles, trails and bodies (9.5%); manufacture of chemicals (6.7%); manufacture of machinery and equipment (5.3%); basic metals (4.9%); fabricated metal products, except for machinery and equipment (4.4%), non-metallic minerals (3.9%) and rubber and plastic products (3.6%). Together, these sectors concentrated 70.6% of the industrial overall.

The leadership, in terms of value added, was in charge of the manufacture of food products (12.6%), with a gain of contribution in relation to the previous year (12.2%). This sector, favored by the stability of a buoyant domestic market and by the foreign market expansion, remained at the top from 2010 to 2011.

The sector of metallic metals extraction, fourth-ranked in 2010, ascended to the second position in 2011. This sector posted gain in the contribution to the industry overall (2.5% p.p.) from one year to the other, which can be attributed to the increase in the foreign demand and to the good behavior of exportation. In 2011, the exportation of iron ore was higher than that of the previous year, leveraged by the rise in the prices in the international context.

Mining and quarrying boosted contribution between 2007 and 2011

The mining and quarrying mining industries increased contribution to the value added between 2007 (6,3%) and 2011 (11,8%) leading the upward trends of the industry ans, despite the quite small weigh, their multiplying effect is important, since their goods provide input both for the manufacturing industry and for construction. Oil and natural gas extraction was the most productive activity of the sector, advancing from the 11^th position in 2007, to the top position, in 2011, in the rank of the 29 activities. The second greatest productivity is attributed to the extraction of metallic minerals, which moved from the first to the second position in the rank between 2007 and 2011.

Among the sectors with the greatest productivity in 2011, the highlights are oil and natural gas extraction; extraction of metallic minerals; manufacture of coke and petroleum products; manufacture of tobacco; and support activities to the extraction of minerals.

The configuration of the activity oil and natural gas extraction is peculiar, that is, it presents a high contribution of a number of enterprises and of the value added concentrated in smaller companies, but with a low weigh in terms of employed persons - which implies that the total number of workers in that industrial activity belongs to service providers. Despite the reduced number of enterprises doubling from 2007 to 2011, this is a concentrated sector, economically speaking. As far as iron ore is concerned, there is a concentration of employed persons and value added in the range of enterprises with 500 or more employed persons. However, the reduced number of enterprises in this range reveal their level of economic concentration.

In 2011, the 12 largest enterprises in terms of net revenue of sales represented, in the total of the oil and gas extraction activity, around 34.8% of the number of enterprises; 59.3% of the employed persons; 85.0% of salaries, withdrawals and other compensation; 96.8% of the total revenue; 99.1% of the value added and 93.0% of the total costs and expenses of the segment. As to the extraction of iron ore, the 12 largest enterprises in terms of net revenue of sales represented 17.3% of the number of enterprises; 98.5% of the employed persons; 97.3% of salaries, withdrawals and other compensation; 98.5% of the total revenue; 98.5% of the value added and 98.2% of the total costs and expenses of the segment. Concerning the extraction of nonferrous metallic minerals, the 12 largest enterprises in terms of net revenue of sales correspond to 6.4% of the number of enterprises; 69.2% of the employed persons; 80.6% of salaries, withdrawals and other compensation; 83.8% of the total revenue; 84.7% of the value added and 85.1% of the total costs and expenses of the segment.

Iron ore's sales surpass diesel fuel's for the first time in 13 years

In 2011, in the rank of the 15 highlights in term of the value of sales, raw or improved iron ore boosted, recording sales of R$ 50.9 billion - overweighing for the first time since the beginning of the time series in 1998, diesel fuel, with R$ 48.1 billion of reais.

In the North region, the products that stood out in terms of the value of sales were raw or improved iron ore (17.7%) and TV sets (9.5%). In the Northeast, the highlight was diesel fuel (3.7%). In the Southeast region, the products that stood out were raw or improved iron ore (17.7%), crude petroleum oil (2.8%) and diesel fuel (2.8%). In the South region, diesel fuel (3.5%) and automobiles, with engine displacement > 1,500 cm³ < or = to 3,000 cm³ (2.9%) had the highest percentages. In the Central-West region, fresh or chilled beef (7.4%) and Cake and residue of soybean oil extraction (4.9%) were the most representative activities.

Considering the 100 greatest industrial products and services in terms of value of sales, the total of sales reached R$ 908.0 billion in 2011, which represents around 52.2% of the total of the sales of enterprises with 30 or more employed persons in the Brazilian industry. This same relation of industrial products and services represented 51.5% in 2010.

Out of the one hundred greatest industrial products and services, in terms of the net revenue of sales, those which advanced in the ranking between 2010 and 2010 were: natural gas, from 76^th in 2010 to 51^st in 2011; vehicles for the transportation of goods, with maximum load capacity not above 5 tonnes, up 24 positions; iron and steel structures, as plates or unspecified, up 16 positions; and aviation kerosene, up 12 positions.

Conversely, the industrial products and services that most lost positions from 2010 to 2011 were: cold-rolled carbon steel bobbins, uncoated, down 26 positions, from 55^th to 81^st; refrigerators or freezers, including combined, for domestic use (from 48^th to 62^nd); steel sheet, coil, strip and tape, rerolled, including coated, painted, varnished ones (down 12 positions); agricultural tractors, including cultivators (from 39^th o 50^th).