06/12/2024 – 15:51
Consultation carried out by the Federation of Industries of the State of Rio Grande do Sul (FIERGS) with 220 companies, between May 23 and June 10, reveals that 81% were affected by last month’s floods, of which 63% suffered total shutdown or partial of its activities.
The consultation also found that 52% of industries did not have insurance coverage against losses and damages resulting from floods. Among micro, small and medium-sized companies, 63.4% were uninsured, while around 70% of large companies were insured. Among those without insurance, 16% chose to close their business or change location, compared to 13% of insured people who made similar decisions.
“The floods were catastrophic for Rio Grande do Sul. In addition to the personal drama of those who lost family members and saw their homes being invaded by water, the economy of Rio Grande do Sul will also suffer an immense impact, the effect of which should begin to be detected in the coming months, and It will take an uncertain amount of time to recover. But the first signs are already appearing, with the confidence and expectations of industrialists in Rio Grande do Sul collapsing”, says the president of FIERGS, Gilberto Porcello Petry.
The survey aimed to understand the profile of the most affected industries, assess the extent and types of losses suffered by them and capture perspectives. The work was coordinated by the FIERGS Economic Studies Unit (UEE), which prepared the consultation with industries. It received publicity support from the Union Development Unit (Unisind), the unions affiliated to the entity, the Union and Business Coordination Council (Conase), the Technical Management and Support for Thematic Councils (Getec) and the Social Service of Industry (Sesi-RS).
The consultation points out that, among the main losses resulting from the catastrophe, the most listed were the logistics used to flow production or receive inputs, problems with personnel and employees, in addition to difficulties with suppliers affected by the floods. Furthermore, 31.3% of those who responded reported losses in stocks of raw materials, 19.6% in machines and equipment, another 19.6% in physical establishments and 15.6% in stocks of final products.
Despite being impacted, 64.2% of companies do not intend to change the location of their headquarters and will remain in the same installation area. 20.1% have not yet decided what they will do with their business. The main measures that would encourage companies to resume their activities in the same location include improving infrastructure, postponing or amnesty the payment of taxes and granting subsidized credit.
“It is an extremely difficult task to rebuild the State, the economy has to move forward, and it is not moving forward”, highlights the president of FIERGS. Faced with this serious scenario, Petry reinforces the importance of taking urgent measures to support companies, to avoid layoffs. Among the main suggestions made by the industry in Rio Grande do Sul are the reactivation of emergency employment maintenance measures, such as the Emergency Benefit (BEm), the Emergency Employment Support Program (Pese), as well as quick access to credit and working capital.
#Research #shows #industries #flood #insurance