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Blog Coronavirus begins to affect the technology market in Brazil

Coronavirus begins to affect the technology market in Brazil

It has already been proven that the Covid-19 caused a disaster in the world economy. China, which has the highest rate of infected people, had to curb its production for the safety of its employees. The fact is that the lack of manpower in one of the countries that most imports technology in the world, had global repercussions, including in Brazil. 

The Brazilian technology sector already suffers from the lack of parts to assemble the products. 

Some companies are forced to shut down some factories in the country, including giving collective holidays to employees while supplies are not normalized.

Standstill 

Samsung had to stop assembling products in Campinas (SP) for 3 days in February. The problem itself hit LG and Flextronics, the company responsible for Motorola's products in Brazil, more severely. The LG factory in Taubaté (SP) promoted a 10-day stoppage, which started on March 2. Flextronics in Jaguariúna (SP) decided to give collective holidays to its employees between the 17th and 28th of February, but it has already announced that it will do this again between the 9th and 28th of March. A similar movement is taking place in the Free Zone in Manaus, where several automakers already provide collective vacations for their employees due to the lack of inputs coming from China.

Affected consumer 

According to the Brazilian Association of the Electrical and Electronic Industry (Abinee), among its members, 54% of the companies claim that difficulties may begin to occur in delivering finished products around Brazil due to the lack of parts. The estimate is if this situation continues for another 45 days. If it reaches that point, the lack of production can affect the consumer in several ways. With the lack of stocks, the prices of certain products can undergo major changes, with few units on the shelves, the values ​​can be inflated. 

Small businesses are also affected 

It is wrong to think that only large companies will be affected by the lack of parts exported to Brazil. For example, a company that specializes in repairing computers and cell phones will also suffer from a shortage of parts, including prices that may start to rise due to high demand and demand. Parts suppliers on sites like Aliexpress and eBay are no longer able to meet their customers' needs. The thought that remains is for the cure to be found as soon as possible, however, the effects caused by the Coronavirus have already affected the world industry in a way rarely seen before.

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