Business Opportunities in Brazil for Computer Hardware Manufacturers & Software Developers

As Brazil’s economy continues to scale, computer hardware manufacturers and software developers are realizing the immense potential for expansion into the nation. In fact, some of the world’s largest technology firms, like Microsoft, have recently expanded their manufacturing operations in Brazil.

The business opportunities in Brazil aren’t just limited to Fortune 500 companies. Other manufacturers and developers may benefit from establishing a Brazilian presence, here are a few reasons why.

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Brazil’s Economy is Large

Brazil has the eighth largest economy in the world, and seventh largest in terms of purchasing power parity. During the first decade of the 2000s, the economy experienced rapid growth with an average annual GDP growth rate of over 5%.

In 2013, this boom halted and growth has since contracted. Despite the recent contraction, the Brazilian economy is still large and healthy. With proper planning and leadership, expanding into Brazil represents a significant opportunity for revenue growth.

Significant Tax Relief for Local Manufacturing

Due to complex, high import taxes imposed by the Brazilian government, exporting U.S produced products into Brazil is not cost efficient. Hardware manufacturers and software developers already deal with thin profit margins; the high import taxes all but negate any opportunity for profit growth.

So how can one take advantage of the large economy without getting beat up by local taxes? Procuring and manufacturing (or developing) your products locally, in Brazil.

Improving Infrastructure for Distribution

As the economy boomed in the 2000’s, so did its transportation infrastructure. This means transporting goods from a manufacturing plant to shipping facilities is easier than it was twenty years ago. Production capacity has expanded significantly, allowing manufacturers to meet their production needs.

Interested in Expanding Your Business to Brazil?

Patriot has been successfully helping hardware and software firms benefit from an expansion into Brazil for many years now. Our team members possess the global manufacturing and logistics expertise to help your business expand. If you are interested in speaking with one of our representatives, please fill out our main contact form.