ALEC president highlights risks to Brazil's rental sector

An over reliance on imported equipment will damage the Brazilian rental sector in the long run and damage the economy as a whole, said Marco Aurélio da Cunha, president of Brazilian rental association ALEC during the recent M&T Expo show.

Mr Aurélio da Cunha, speaking at a Sobratema meeting during the show, said the increased reliance on imported equipment left Brazilian rental companies exposed when global markets recover, with renters likely to have difficulties in obtaining equipment when they need it.

His argument takes place against a backdrop of increasing concerns in Brazil about ‘deindustrialisation', with excessive imports undermining the manufacturing and industrial base of the country.

"With the overheated Brazilian currency, imports of industrial goods are cheaper", said Mr Aurélio da Cunha, "The country uses these products, switching from domestic suppliers, and we suffer from the pains of deindustrialization - closed factories, lost jobs and hindered growth of the industrial sector."

He said that Brazil's manufacturing sector was paying the price for high taxes, poor infrastructure, high production costs, and expensive skilled labor. "It is essential to resume structural reforms, to take public policy measures to limit deindustrialisation and recover competitiveness."

Mr da Cunha, who became president of the association earlier this year, also highlighted the shortage of skilled labout to operate and manage construction equipment in Brazil.

"The rental companies do their part [in training], but not enough", he said, "Misuse of equipment means that machines are returned, projects are delayed, and costs are added for the constractor and the rental company. Not to mention the item of greatest importance - safety."

He said the construction industry as a whole needed to do more to train workers.