80 www.elevatorworld.com • May 2020

MARKET TRENDS

An Overview of the Brazilian Lift MarketThe eighth-largest economy in the world and the sixth-most populated is changing to be prepared for the MERCOSUR and EU trade agreement that will pose challenges and bring opportunities in the lift market.

The Brazilian elevator market reached its peak in 2014 when new installations climbed to 16,000 units, but, at present, after the 2014 Brazilian economic crisis, that number has fallen to 11,000. However, the worst period is over.

In 2019, a new government took over after 15 years of a left-oriented leadership. At the beginning, the new authorities had to face many problems, but they assert their commitment to economy market rules, an economic freedom act and the approval of a new retirement system. These measures encourage the entrepreneurs with a positive view of economic growth.

The Brazilian gross domestic product growth forecast for 2020 predicts 2.4%, which is not very high, but it means a great difference when compared to -3.8% in 2015 and -3.5% in 2016. Many new building projects are being developed as a result of this change.

Recent Industry HistoryThe great changes in the Brazilian elevator industry took

place in 1999-2000 when overseas elevator companies purchased the most important Brazilian companies. Schindler took control of Elevadores Atlas, the biggest Brazilian lift manufacturing and maintenance firm, which was three times bigger than the established Schindler brand in Brazil. thyssenkrupp arrived in the country and purchased Elevadores SÛR and KONE’s local operations. In the same period, Otis

bought around 50 small and medium-sized elevator companies and launched a second brand called Elevador Brasil.

The crisis had a negative influence on the lift market so that important new players that had invested in Brazil, especially for the FIFA World Cup and Olympic Games, left the country: for instance, Hyundai fired half its personnel and stopped production in 2016, and Mitsubishi Elevator was sold to Otis in 2017. (For a more complete history of the Brazilian elevator market, see this month’s Online Extras at www.elevatorworld.com.)

AccessibilityIn 2017, the elderly population exceeded 30 million, and the

prediction for 2060 indicates that a quarter of the population, about 58 million, will be senior citizens. In addition, 15% of the Brazilian population suffers some sort of disability. Federal law requires buildings to be made accessible.

Standards and CertificationIn general, Brazil follows the European standards. Some of

those standards are published according to the MERCOSUR trade bloc of Argentina, Brazil, Paraguay and Uruguay. They are named with the prefix “MN” (MERCOSUR Norm). Other standards are valid only in Brazil (NBR), such as the Safety Norm for Existing Lifts, which has not yet been published in Argentina. An equivalent to the EN 81-20/-50 standard is coming

soon and will be mandatory two years after its publication. Brazil has already adopted EN 81-28’s remote alarm equivalent (NBR 16756), but it is not yet compulsory.

INTI’s ETV (Vertical Transport Test Laboratory) was established in 2012 to technically check lifting elements using the latest safety standards. As of 2015, it is mandated that all lift safety components (domestic and imported) have certification from INTI. This technology laboratory, in Argentina, is the only one able to certify in Latin America.

by Fábio Becker Aranha

Statistics on Brazil and its lift market

Existing Installations

400,000

Population 210 million

New installations 11,000/year

New installations 90% international companies 10% local SMEs

Maintenance market share

65% international companies 35% local SMEs

Number of personnel 25,000

*After economic crisis (2014:16,000 units)

May 2020 • ELEVATOR WORLD 81

MARKET TRENDS

Lift AssociationsIn Europe, there are specific associations of lift maintenance

companies. This is not the case in Brazil, where the associations bring together manufacturing, installation and maintenance companies in a similar way to the American National Association of Elevator Contractors.

Despite the economic problems and other difficulties, AEM (MERCOSUR Lift Association) was founded in 2013 as a regional lift association that groups the main entities and other collaborators in the region. Its priorities are to:

♦ Exchange relevant information among organizations ♦ Defend skilled labor and technological sovereignty in the

region ♦ Jointly monitor commercial production and industry

performance ♦ Propose measures and policies to the states to promote

national value ♦ Tackle regional training, technology and innovation projects

There are three from Argentina: CAFAC (Argentine Chamber of Manufacturers of Elevators and Its Components), ADIMRA (Metallurgical Industry Association of Argentina) and ITEEA (Institute of Technological Studies and Lift Education). On the Brazilian side, there are three others: SECIESP (Union of Lift Maintenance and Conservation Cos. of the State of São Paulo), SECMIERJ (Union of Lift Companies of Conservation, Maintenance and Installation of Rio de Janeiro) and SECIEMG (Union of Lift Maintenance and Installation companies of Minas Gerais). Unfortunately, there are no associations in Uruguay and Paraguay.

The World Elevator Federation was created in April 2019 and includes AEM. As regards shows, ExpoElevador is the most important exhibition in Latin America. The next edition will be held in São Paulo on March 1-3, 2021.

Foreign CompaniesMany foreign lift component companies are already doing

business in Brazil. The Italian companies are: ♦ GMV started business with a local office in 1996 and opened

a branch the next year. ♦ Vegalift had a local office in 2012 and started production

in 2014. ♦ Giovenzana set foot in Brazil with a local office in 2017. ♦ Draka (Prysmian Group) has a factory. ♦ Montanari Group has a sales representative.

German companies in the country include: ♦ Wittur Group opened an office in 1996 and, four years later,

established its first factory. It opened a second in 2016 in Londrina (Parana Estate).

♦ Schmersal has been present in the local market since 1968. It built a factory in Boituva (São Paulo Estate) in 1975.

♦ Bucher purchased the Brazilian Eco Sistemas in 2013 and started selling imported components. It opened its own production facilities in 2017.

Continued

Populations of Brazil’s main cities

City Population(Million)

MetropolitanPopulation (Million)

São Paulo 12.0 21.3

Rio De Janeiro 2.5 12.3

Belo Horizonte 2.5 5.9

Brasilia--Federal District

3 4.3

Porto Alegre 1.5 4.2

Recife 1.6 4.0

Fortaleza 2.6 4.0

Statistics on Argentina and its lift market

Existing Installations 250,000

Population 45 million

New installations 3,500/year

New installations 85% local/15% international companies

Maintenance market share

10% international companies/ 90% Local SMEs

Number of personnel 12,000

82 www.elevatorworld.com • May 2020

MARKET TRENDS

Statistics on other regional lift markets

Country Population Existing Installations

New Installations per year

Argentina 44,938,000 250,000 3,600

Brazil 210,458,000 400,000 11,000

Bolivia 11,470,000 27,000 400

Colombia 50,133,000 38,000 2,500

Chile 19,107,000 30,000 1,500

Ecuador 17,201,000 ** 400

Paraguay 7,152,000 ** 100

Uruguay 3,600,000 14,000 250

Venezuela 32,220,000 ** **

Peru 32,500,000 10,000 900

Guianas 790,000 ** **

Suriname 575,000 ** **

Total 430,144,000 759,000 20,650

Turnkey Solutions for Custom Applications

State-of-the-Art Incline ElevatorsSS

With nearly 30 years of experience, Marine Innovations stands alone in the inclined elevator market.

We offer:• Turnkey solutions for commercial

and residential applications.• The best fully-engineered inclined

elevator available.• Complete in-house engineering, design

services and custom manufacturing.• Inclined elevators that meet

or exceed ASME A17.1-2010, Section 5.1 and 5.4 standards.

We are client focused and driven by research, development and continuous improvement. Contact us today!

888-334-4666 • info@marineinnovations.com www.marineinnovations.com

Available for Traction and Hydraulic Applications

84 www.elevatorworld.com • May 2020

MARKET TRENDSSpanish companies include:

♦ Fermator, which built a 4,000-m² factory in 2005 and expanded it five years later to 13,000 m². This year, the firm plans to invest an additional US$5 million.

♦ Sicor has had sales representatives here since 2012. ♦ Micelect is present with a sales representative.

There are two Argentinean companies: ♦ Adsur began with a distribution center in 2009. ♦ Avaxon has had a representative since 2008.

Other important companies are Torin Drive (in Brazil since 2012), Danfoss (since 1968, then started selling inverters in 1990) and Yaskawa’s Brazilian branch (since 1974).

EU/MERCOSUR AgreementThe most important piece of news for the future of the lift

market is the agreement to be signed between the European Union (EU) and MERCOSUR. Although there is agreement in principle, the texts have not been finalized, signed or ratified. Therefore, it has not yet come into force.[1] Such a good business relationship with promising numbers can bring about great potential because:

♦ The EU is MERCOSUR’s number-one trade and investment partner.

♦ The EU exports to MERCOSUR were EUR45 billion (US$50.4 billion) in goods in 2018 and EUR23 billion (US$25.76 billion) in services in 2017.

♦ The EU is the biggest foreign investor in MERCOSUR, with a stock of EUR381 billion (US$426.7 billion). MERCOSUR’s

investment stock in the EU amounts to EUR52 billion (US$58.24 billion) as of 2017.However, while the relationship is very substantial, both

exporters and potential investors face barriers in the MERCOSUR markets. Consequently, the goals of the deal are to remove barriers and help (especially smaller) European firms increase their exports, strengthen workers’ rights, ensure environmental protection and encourage companies to act responsibly.

This agreement represents win/win opportunities and growth for both parties. It can also be quite convenient for small and medium-sized companies.

Reference[1] Wikipedia. “European Union–Mercosur Free Trade Agreement” (en.

wikipedia.org/wiki/European_Union%E2%80%93Mercosur_free_trade_agreement)

Fábio Becker Aranha is president of AEM, former president of (SECIESP) and founding partner of Infolev, a Brazilian company dedicated to the development of vertical-transportation automation technologies. He holds an engineering degree from the São Paulo Polytechnic University.

KSS Vandal Resistant Button Kit

One drop in kit is all you need to upgrade your cab and quit replacing broken buttons each service visit!

• All tough, durable metal buttons.

• Easy and fast installation - swap out new buttons for old in the COP.

• 15 button kit contains five • 15 button kit contains five task-specific buttons, ten blank buttons, step by step instuctions, and all necessary hardware.

• Matching hall station solutions available on request.

Reduce downtime for your customer Reduce downtime for your customer with buttons that defy destruction!

GO FROM THIS TO THISEASILY REPLACE OLD BUTTONS

Contact us today to see if our KSS Vandal Resistant Button Kit will work for your elevators!

KONE Spares(800) 343-3344

go.konespares.us/no-vandals