PORTUGUESE EXPORTS OF METALLURGY AND METAL-MECHANIC REACH A RECORD

Exports of the metallurgical and metal-mechanic sector increased 11.3% to 18,334 million euros, in 2018, when compared to 2017, reaching "the best mark ever", announced today the sector association.

"If the previous year had already been the best ever, this year has exceeded all expectations," said the vice president of the Association of Metallurgical, Metal-Mechanical and Related Industries of Portugal (AIMMAP) in statements to the Lusa agency.

According to Rafael Campos Pereira, this performance "is not a less lasting flame", but the result of "a consistent work which has been done over the last years by companies of the sector, that have heavily invested in quality, differentiation factors, innovation and training of human resources, positioning themselves near the reference companies and in the most demanding markets."

"At the moment, we are working for a diverse set of sectors, from the railway industry, automotive, aerospace and chemical industry to the European metal-mechanic industry itself, as well as for consumption and distribution, in some of our subsectors," he underlined.

"It has been a consistent evolution and very particularly in the most important markets and those of biggest added value, namely Germany, Spain, France and the United Kingdom," he added.

According to the AIMMAP data, for the growth registered in 2018 "much contributed” the exports of December, which registered a year-on-year increase of 20.5% to 1,418 million euros.

 "It was the best month of December in the history of this industry, fact that contributed to have reached the mark of 28 consecutive months exceeding the billion euros in exports", he highlighted. 

Responsible for about 18% of the Portuguese Gross Domestic Product (GDP), the sector had in Spain, Germany and France its three main markets, where it maintained a "high growth", and "even the UK continued to evolve positively, resisting the uncertainty about Brexit”, notes AIMMAP.

Rafael Campos Pereira also emphasizes the "extraordinary growth" in the Italian market, which has risen more than 70% over the previous year and now occupies the fifth place in the ranking of the main markets.

In addition, it highlights the "good performance" of the US market, where it says, "it was possible to face the restrictive policies of the US administration and the consequences of the commercial war with China", maintaining an almost residual growth, but without falling, consolidating.

Comprising from cutlery to ceramics, machinery and automotive and aeronautical transport equipment, the metallurgy and metal-mechanic industry is, according to AIMMAP, a sector "more exposed to the international markets fluctuations", because of its "high degree of internationalization" .

In this context, "the diversification of markets is the safe strategy to minimize the risks of dependence on a limited number of markets" and, therefore, the current strategy of internationalization promoted by the association aims to "consolidate the presence in certain markets and conqueror a relevant position in new markets".

"This internationalization program will contribute to improve the global positioning of METAL PORTUGAL and to raise the perception of quality and innovation of this sector in an increasingly global and competitive world," he says, adding that "it is intended to value internationally the companies, as well as national offer and so demonstrate the advanced technology in Portugal, positioning METAL PORTUGAL companies on the map of qualified global suppliers of important industries and 'clusters' ".

According to AIMMAP's vice president, the prospects for 2019 are, therefore, to maintain growth, to which is important "the maintenance of the current policies of the European Central Bank, with low interest rates and some stability", and a bet on quality, innovation and differentiation, in particular through digitization that should "compensates the slowdown of the economy".

"We have to have a strong agenda in the area of digitization, it is important that our companies continue to add even more value to their offer and, in that sense, it is very important that the Government invest in digitization and stimulate companies in this area. Not for the reduction of the workplaces, but to increase professional profiles with greater substance and technological density and, therefore, with higher wages", said Rafael Campos Pereira.

In terms of markets, AIMMAP intends to maintain its focus on the current largest customers - Germany, France and Spain - but the association leader warns companies that "they will also have to start betting on other markets where, in the last years, the sector has not grown, as is the case of Brazil or China".