The Buzz from Brazil, As I See It

Having recently taken a new job that gives me responsibility for marketing high tech solutions for network security throughout Latin America, I have the chance to travel from time to time in the region. As of this writing, I am in Sao Paulo, Brazil, where I have been working for four days, interacting with multiple professionals associated with my employer's product line.

What does the world look like from Brazil, on the eve of Carnaval (which starts on Friday, February 20th and runs through Tuesday, February 24th)? Well, in the big city part of Brazil, represented by Sao Paulo, it looks reasonably good. The newspapers and TV news all report dutifully and with significant interest on the news pouring from the USA about economic crises, and multi-billion dollar solutions for the auto industry, the home mortgage meltdown and various other challenges. Brazil, meanwhile, toils away with its own share of challenges, and the government continues to commit significant purchasing power to helping its citizens deal with fallout from up north. Globalization being what it is, however, there is no escape from the forces of demand and credit drying up, all the same, as one of Brazil's premiere companies, Embraer, announced today it's laying off 20% of its workforce, due to a drop in worldwide demand for its airplane product offerings.

Additionally, the buzz in Brazil seems to be about the 30-60 day wait to buy (and receive shipment of) a new car. Even those wanting to buy a used car have a period of time to wait, due to demand outstripping supply. Restaurants appear busy, but mostly during the lunch hour, not so much at night. People seem to be complaining that money is tight, yet you can't find a ticket for entry into the Sambodromo (where Sao Paulo's Carnaval celebration is held) for less than $800 (USD).

Folks that are aligned with high-tech product offerings appear to be forging ahead with growth plans across the board. Their main concern is the fluctuation in the US$/R$ exchange rate, which causes their customers and themselves concerns about exactly how much they'll be paying to their US suppliers when the bill comes due. Nonetheless, as off-shore HQ offices tell them to gird themselves for "economically challenging" times, they respond by gearing up for more usage of technology, such as video conferencing, on-line chat and presentation services, and the security solutions that are needed to make sure business (on-line) is not interrupted by connection failures, security breaches or other QoS (Quality of Service) problems. This is a good market for my employer's offerings, and I'm happy to be engaged in serving the clients and partners that we have in Brazil.

In brief, the buzz from Brazil (at least from a "macro"cosm of the economy, like Sao Paulo) is positive, but not 100% so. It remains to be seen how deep the macro economic problems of the world at large will affect this land of extreme potential and tremendous human and natural resource potential. Stay tuned, and thanks for reading. As they say in Portuguese, "Até mais!"

© Daniel A. Cabrera, TopExec.org, All rights reserved, 2009