PIA Enterprise: from 2013 to 2019, industry lost 8.5% of enterprises and 15.6% of job posts
July 21, 2021 10h00 AM | Last Updated: July 23, 2021 04h08 PM
In 2019, the country had 306.3 thousand industrial enterprises, which employed 7.6 million persons and paid R$ 313.1 billion in salaries, withdrawals and other compensation. Net revenue of sales in the sector was R$ 3.6 trillion.
In 2019, the number of industrial enterprises recorded its sixth drop in a row and was 8.5% below its record, hit in 2013 (335.0 thousand). The number of job posts fell 15.6% against 2013, when the sector employed 9.0 million persons, the time series peak.
Between 2010 and 2019, employment in the industrial sector fell 9.2%, driven by the loss of 786.2 thousand jobs in manufacturing industry. Only eight of the 24 manufacturing industry activities increased its number of employed persons, with a highlight to production of coke, petroleum products and biofuels (51.3%).
Although it pays the highest salaries, mining and quarrying industry faced a decrease in the average salary, from 5.9 to 4.6 minimum wages. In manufacturing industry, the decrease went from 3.3 to 3.1 minimum wages.
In 2019, the eight biggest industrial enterprises were responsible for 24.7% of the national Value of Manufacturing Output (VTI). From 2010 to 2019, the participation of local branches in value of manufacturing output went from 11.7% to 15.2%. Despite the drop in tem years, the Southeast still accounted for 57.7% of the value of manufacturing output in 2019.
Gross revenue of industry reached R$ 4.8 trillion in 2019, and 82.5% of that amount came from the sale of industrial products and services, with a bigger participation than in 2010 (80.5%).
Production of motor vehicles, trucks and trailers recorded the biggest increase in industry’s net revenue of sales (3.1 p.p), with a change from the 2nd to the 4th position in the ranking, and a total 9.2% of the revenue in 2019. These are some of the data in the Annual Survey of Industry (PIA) Enterprise 2019.
Employment in industry has fallen 15.6% since 2013
Brazilian industry employed 7.6 million persons in 2019, with a decrease of 9.2% against 2010. In relation to 2013, the series peak, when it employed 9.0 million persons, industry has lost 15.6% of its job posts (see the table below).
|Annual Survey of Industry - PIA Enterprise - 2010/2019|
|Number of enterprises|
|Mining and quarrying industry||5,163||6,456||6,552||6,966||6,939||7,010||5,625||6,358||5,919||6,341|
Against 2018, industry lost 0.7% of its job posts. Although employment in industry increased 2.6% in the period, there was a decrease of 0.8% (or 57,694 persons) in manufacturing industry, which is responsible for 97.5% of the employment in the sector.
In 10 years, among the 24 activities of manufacturing industry, eight recorded increase in the number of employed persons, with a highlight to oil and biofuels (51.3%). The most significant decreases came from other transportation equipment, except motor vehicles (-27.7%) and manufacture of computer, electronic and optical equipment (-27.5%).
In mining and quarrying industry, extraction of oil and natural gas recorded an increase of almost five times in employed workforce in 10 years. The main decrease was that of extraction of iron ore (-41.0%). Mining and quarrying industry represent 2.5% of the workforce employed in industry.
The activity employing the highest percentage in 2019 was manufacture of accessories (7.5%), followed by metal products, except machinery and equipment (5.9%), motor vehicles, trailers and trunks (5.8%) and non-metallic mineral products (5.1%).
Manufacturing industry has highets average salary
National industry paid R$ 313.1 billion in salaries, withdrawal and other compensation in 2019, 96.4% relative to manufacturing industry and 3.6% to mining and quarrying industry. In ten years, however, the average monthly salary in industry fell from 3.4 to 3.2 minimum wages.
Although it still pays the highest salaries, mining and quarrying industry recorded a decrease of 1.3 minimum wages in one decade, having changed from 5.9 to 4.6 minimum wages in 2019, mainly due to the decrease of 4.0 in extraction of metallic minerals. In manufacturing industry, there was a drop from 3.3 to 3.1 minimum wages. Extraction of petroleum and natural gas had the highest salary level in 2019 (23.0 minimum wages), followed by support activities to extraction of minerals (9.7 minimum wages) and manufacture of pharmaceuticals (7.0 minimum wages).
Number of industrial enterprises has dropped 8.5% since 2013
In 2019, PIA found 306.3 thousand industrial enterprises in the country. In ten years, that was the second smallest number of enterprises, only second to 2010 (299.9 thousand). This indicator reached its peak in 2013 2013 (335.0 thousand enterprises) and, since then, has not stopped decreasing (see the table below).
|Annual Survey of Industry - PIA Enterprise - 2010/2019|
|Number of employed persons|
|Mining and quarrying industry||175,188||206,230||221,942||225,324||227,409||213,273||189,672||187,002||187,085||192,005|
Manufacturing industry enterprises were 97.9% of the industrial enterprises and had a similar behavior: they have reduced in number since 2014 and reached 300 thousand in 2019 (minus 8.2%). In turn, the number of enterprises in mining and quarrying industry increased 7.1% since 2018, having reached 6.3 thousand. This sector represents only 2.1% of industrial enterprises.
In 2019, industry had 183.8 thousand local branches, of which almost 97.5% operated in manufacturing industry. A local branch is the place where the economic activities of an enterprise take place.
Average size of mining and quarrying industry exceeded that of manufacturing industry
In 2019, the average size of industrial enterprises was 25 employed persons, being highest in mining and quarrying industry (30 persons) than in manufacturing industry (25 persons). Among industry activities, manufacture of coke, petroleum products and biofuels stand out, with about 668 employed persons per enterprise, follows by extraction of metallic minerals (374 persons) and manufacture of pharmaceuticals (220 persons).
Gross revenue of industrial enterprises was R$ 4.8 trillion in 2019
Gross revenue of industry was R$ 4.8 trillion in 2019, out of which 82.5% came from sale of industrial products and services, with an increased in participation from 2010 (80.5%).
The contribution of revenue of non-industrial activities also increased from 7.1% in 2010 to 8.3% in 2019. The participation of other revenues (rents, interest from financial operations, etc.) fell from 12.4% to 9.2%, in the period.
The net revenue of sales was 3.6 trillion in 2019. From that amount, 67.4% came from enterprises (with 500 or more persons employed persons). It is also worth mentioning that, in 10 years, the net revenue of enterprises with up to 19 employed persons changed from 5.0% to 5.8%.
Manufature of vehicles reduces participation and drops in revenue ranking
In 2019, revenue of mining and quarrying industries was 6.1% of the industry overalll, biggest share in 10 years. Extraction of petroleum and natural gas recorded an increase of 1.6 p.p, in the period, and reached 1.7% of industry revenue. The most relevant mining and quarrying activity, however, was extraction of metallic minerals, which concentrated 3.6% of industry.
In manufacturing industry, manufacture of food products (20.5%) was the activity with the biggest revenue in 10 years, an increase in its share of 3.3 p.p.
On the other hand, manufacture of motor vehicles, trailers and trunks faced a drop in representativeness in industry (3.1 p.p.), having changed from the 2nd to the 4th position in the ranking, and concentrating 9.2% of the overall revenue in 2019.
Value of manufacturing output was R$ 1.4 trillion in 2019
In 2019, 306.3 thousand active industrial enterprises with one or more employed persons employed 7.6 million persons and paid R$ 313,1 billion in salaries, withdrawal and other copmensation. Their net revenue of sales was R$ 3.6 trillion.
Industry generated R$ 1.4 trillion of value of manufacturing output, difference between gross value of output (R$ 3.3 trillion) and costs of industrial operations (R$ 1.9 trillion). From that amount, 90.1% (R$ 1.3 trillion) came from manufacturing industry.
The eight biggest industrial enterprises generated 24.7% of value of manufacturing output
In ten years, industrial concnetration (R8) increased by 2.4 p.p., having changed from 22.3% in 2010 to 24.7% in 2019. In mining and quarrying industry, concentration fell from 75.5% to 74.0% and, in manufacturing industry, it increased from 19.6% to 23. 0%. The “ratio of concentration 8" (R8) is the percentage of value of manufacturing output generated by the eight biggest companies in the sector.
In the period, concentration increased in manufacture of computer, electronic and optical equipment, from 33.5% to 46.1% and manufacture of pulp, paper and paper products, which changed from 46.2% to 56.6%.
Participation of mining and quarrying industry in VTI increases to 15.2% in ten years
In one decade, local branches of mining and quarrying industries increased their share in VTI, with a change from 11.7% in 2010 to 15.2% em 2019. Local branches of manufacturing industries, despite a decrease of 3.5 p.p. in the period, concentrated 84.8% of the value of manufacturing output in 2019.
In mining and quarrying industry, the advance comes from extraction of oil and natural gas which, in one decade, increased its share by 3.4 p.p. and was 7.2% of industry's VTI. In manufacturing industry, manufacture of food products is still the main activity and increased 1.3 p.p., concentrating 15.2% of the VTI in 2019. Then came manufacture of coke, petroleum products and biofuels, corresponding to value generated in industry and increasing 3.3 p.p. between 2010 and 2019.
Manufacture of vehicles falls from tnhe 3rd to the 6th position in the VTI ranking
Manufacture of chemicals is now in the third position in the ranking in 2019, with 7.3% of the VTI. Manufacture of motor vehicles, trailers and trunks (6.2%), fell by 3.8 p.p. and from the 3rd to the 6th position in the ranking between 2010 and 2019.
In the ranking of five biggest activities in the VTI composition, the 4th and 5th positions were extraction of petroleum and natural gas, which then accounted for 7.2% of the VTI of industry and rose from the 9th to the 4th position, followed by metallic minerals, which, in 2019, was in the fifth position, in a total 6.7% of industrial VTI.
The Southeast lost participation, but still concnetrates 57.7% of the VTI
The Southeast Region held 57.7% of the value of manufacturing output (VTI) in 2019, followed by the South (19,2%), Northeast (10.0%), North (7.5%) and Central West (5.6%). Although it is still the leader, since 2010 the Southeast lost 3.2 p.p. in participation. The Central West (1.1 p.p.), South (0.8 p.p.), Northeast (0.7 p.p) and North (0.6 p.p.) advanced in the period.
In the Southeast, São Paulo (56.6%) lost 2.8 p.p of participation in the regional VTI in 10 yearss, with the decline of car industry. Minas Gerais (20.0%) and Rio de Janeiro (19.6%) were in the second and third positions, with Espírito Santo (3.8%) following it.
In the industry of São Paulo, the main change took place in the car industry, which was the leader in 2010, with 14.6% of the VTI and, in 2019, fell to 9.0%, and it left the group of theee main activities in the state. In Minas Gerais, extraction of metallic minerals represents 22.8% of the VTI.
In the industry of Rio de Janeiro, a highlight is the dependence on extraction of petroleum and natural gas (33.1%) and on manufacture of coke, petroleum and biofuels (30.3%), which amounted to 63.4% of state VTI. In Espírito Santo, extraction of petroleum and natural gas represents 36.8% of VTI.
Santa Catarina is the state with major increase in the VTI share in the South Region
In the South Region, which advanced 0.8 p.p., Paraná (36,7%) and Rio Grande do Sul (35.9%) led national VTI, being, respectively, in the first and second positions. Santa Catarina (27.4%) stood out, which, in spite of remaining ias number three in the ranking, was the state recording biggest participation in 10 years (1.7 p.p.). In this state, a highlight was the expansion of food industry, which advanced in comparison with the traditional wearing fabric and apparel segment.
The Northeast increased its contribution to value of manufacturing output by 0.7 p.p, with bigger representativeness of the state of Pernambuco, leading to increase of participation in the period (4.9 p.p.) and concentrated 21.0% of the regional VTI. This advance took place regardless of Bahia (40.6%), which lost 4.4 p.p. in participation, although still keeping its leadership in the Major Region.
Industry in Ceará, in turn, was responsible for 13.9% of the VTI in 2019, thus consolidating important chains in the leather and wearing apparel industry in the state in the last 10 years. Another highlight was Maranhão, which, in the period, increased its share by 2.4 p.p. and reached 6.1% of value of manufactuing output in 2019, principally due to the development of basic metals industry and that of pulp and paper, exceeding extraction of metallic minerals in the last few years.
Pará is the leader with more than half of the VTI in the North of the country
The North region advanced 0.p.p. in its share of the country's VTI, between 2010 and 2019. A highlight was the advance in Pará (13.2 p.p.). Amazonas fell 12.2 p.p. in 10 years. In 2019, the two states led the regional VTI, with respectively, 55.3% and 39.7% of the total.
In Pará, 84.3% of the VTI comes from the extraction of metallic minerals, whereas Amazonas benefits from the Manuaus Free Trade Zone and from the industry of electronic equipment, beverages and oil refining. Together, the other states accounted for 5.0% of the population in the North Region.
Value of manufacturing output in Mato Grosso do Sul increases by 6.7 p.p in ten years
The Central West recorded the biggest increase in participation in the value of manufacturing output of national industry in 10 years (1.1 p.p.). Goiás (47.3%) is the leader in this Major Region, but the participation of Mato Grosso do Sul (25.4%) increased 6.7 p.p. in the period, as a result of the production of pulp and paer and biofuels. Mato Grosso (23.4%) and the Federal District (3.9%) complete the ranking, both with a strong predominance of food industry.