In 2014, the furniture industry actual turnover in Bento Gonçalves fell 9.4% compared to 2013, totaling R$ 2.54 billion. In the state of Rio Grande do Sul it dropped 6.1% comparing the semester, amounting to R$ 7.5 billion. Bento Gonçalves accounted for 33.8% of the state revenues during this period

The negative performance was the result of a broad scenario featuring economic slowdown and increased uncertainty that led to a decrease in production and employment in the industry. As a reference, according to IBGE data, in Brazil the production of the manufacturing industry fell 4.3% in 2014, while the furniture industry had an even more severe drop of 7.4%.

CNI industrial indicators showed a shrinkage in the employment and the use capacity rates of the furniture industry, besides the reduction in the expected demand. In the construction sector, all expected rates of entrepreneurs showed a significant slowdown and sharp fall in the expectations of the construction industry and new projects for the coming months.

 

 

 

The announcement of the furniture industry turnover of Bento Gonçalves in 2014 adds to the worrying data for the sector. Both exports and employment levels had figures well below expectations for the year. According to the Ministry of Development, Industry and Foreign Trade (MDIC), exports fell by 13.4% compared to 2013. This is the largest decline in exports since 2009, the peak of the last international crisis, when it decreased by 35%. The negative performance occurred in 33 of the 57 countries that imported furniture from the Gaucho furniture center, when comparing the years 2013 and 2014. The fall in Brazil in the same comparison was 2.7% and Rio Grande do Sul, on the other hand, increased it by 2.4%.

Similarly, the reduction in the number of jobs is the worst for the local industry since 2007, when the Ministry of Labor and Employment (MTE) began to release this kind of data. According to CAGED information, last year the furniture industry in Bento Gonçalves had a deficit of 667 jobs. This represents a decrease of 7.4% in employment compared to the beginning of last year. In December alone, there was a deficit of 205 jobs.

The furniture center is comprised of Bento Gonçalves, Monte Belo do Sul and Santa Tereza, totaling approximately 300 companies.