Recession Effects

Effects of Recession on Construction Sector

The current economy recession has hit hard many revenues generating industries in various sectors of the economy. One of the industries severely affected by the economy slowdown is the construction sector. The recession phase has seen labor dismiss due to a massive decrease in capital value. Flavio Maluf, the CEO of Eucatex company, said that the situation is wanting and has seen unemployment rate shoot from 8 percent to eleven percent. This has never been recorded in the past and call for tactical measures to curb the situation.

Most of the entrepreneurs are concerned with the situation and feel that if the situation is not addressed soon, loss of millions will occur as well as the death of many business startups. In his part, Flavio condemned how the respective parties supposed to deal with the situation are lagging, and goes on to call for immediate response to the situation.

The construction industry has recently recorded a price index of only 2% from the 2013 profitability index readings of 11%. The recession has affected the construction industry hard which makes the situation scary as the sector contributes 13% of the total gross domestic product. The construction sector has come up with measures to make 2016 and 2017 a revolutionary time to hit their previous profitability index. Since most consumers and entrepreneurs are losing confidence in the current economy, Flavio has advised the authorities to come up with effective strategies that will make the economy resume its normal state.

Research conducted by Brazilian Association of Building Materials has shown that the rate of entrepreneurs who are optimistic that economy will boom rose from 4% to 30%. However, Flavio says that much effort is needed to make the expectations real.

Flavio Maluf is a Brazilian native born on Dec 1961. Flavio graduated with a mechanical engineering degree from Armando Alvares foundation. After school, he joined Eucatex Construction Company where he has been actively practicing his career as a mechanical engineer to date.

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Comments

1 comment so far.

  • Charlie Arlo

    Other than construction industry, other sectors such as agriculture are gaining market share through continuous government engagement through incentives. Currently, he is the president of Eucatex as well as the president of Grand food group. This may have helped myassignmentservice discount understand the grand value in helping them succeed so well.

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