Why this is important to Wisconsin businesses: Wisconsin companies can be part of the transition.

Business entities and government and funding agencies in Brazil are discussing strategies to organize and promote the dissemination of advanced manufacturing in Brazil, aiming to solidify Brazilian industry competitiveness.

According to the Brazilian Association of the Machinery and Equipment Industry, although there are already many companies practicing the application of modern technologies in the area of manufacturing, the vast Brazilian industrial parc, predominantly made up of small and midsize companies, needs to be updated.

These companies need to transition from conventional production methods to computerized ones. Product development and production control through digital programs, as well as production lines with the use of computer numerically controlled (CNC) machine tools, will be the basis of this technological evolution for these companies.

On the other hand, industries that have already reached a more advanced level in their production lines—such as aerospace and automotive, to name a few—should invest in automated and flexible cells of advanced manufacturing. This is also the case for large companies or subsidiaries of multinationals, and therefore Brazil is seen as a promising market for companies that are developing Industry 4.0 solutions abroad.

According to the National Confederation of Industry's (CNI’s) recent research, of the Brazilian manufacturing industry’s 24 subsectors, 14 must make a technological leap to adapt to Industry 4.0. According to the survey, these sectors are printing and reproduction, pharma chemicals and pharmaceuticals, chemicals, non-metallic minerals, leather and footwear, clothing and accessories, textiles, machinery and electronic devices, transportation equipment, metal products, machinery and equipment, furniture, rubber and plastic articles, and miscellanea. In terms of productivity, taking into consideration the innovation rate, higher-than-average performance is seen in the mining, food, furniture, aerospace and automotive industries.

Strategies to drive advanced manufacturing in Brazil include establishing research centers and supporting startups. The National Bank for Economic and Social Development (BNDES) has a line of non-refundable financial support for applied research projects and technological and innovation development by tech institutions. Among the segments supported by the bank are advanced manufacturing and intelligent systems aimed to the application in:

  1. Urban mobility: traffic management and control systems, traffic light management systems, urban monitoring systems, parking management systems, toll access control systems, railroad control and automation systems, ride sharing systems (cars and bicycles)
  2. Agriculture: precision agriculture, cattle precision, systems and projects for efficient supply use, agricultural energy and water, integration of agriculture and cattle activities
  3. Industry: automation, robotics and additive manufacturing

A survey sponsored by BNDES on the implementation of the Internet of Things (IoT) in Brazil estimates its impact in productivity at $50 billion to $200 billion per year—10% of Brazil’s GDP. Focus will be placed on the car, textile, mining, and oil and gas sectors. A bid aimed at financing the implementation of the IoT was launched at the CNI in Nov 2019. The initiative offers $4 million to companies interested in installing the technology in the country. According to the Agéncia Brasil, the funds will be invested in laboratory infrastructure and the purchase of equipment and software.