REPORT
By Mauricio Lopes
International Correspondent
São Paulo, Brazil
Engineering & Construction project management opportunities after the COVID-19 pandemic in Brazil
In Brazil the year 2020 began with a more robust GDP growth expectation compared to what happened in 2019.
However, in March with the beginning of the covid-19 pandemic, the plans were completely changed. The social distance imposed by the pandemic generated a retraction in the world economy. It was no different in Brazil. The forecast is that in 2020 the reduction in GDP will be 5.62%.
The Engineering & Construction area has a significant share in the country’s GDP. The following are the main segments that include engineering and construction, as well as its projections for the country’s economic growth resumption.
Building stores
The increase in sales of construction materials has been significant, as with people staying more at home, they renovate their homes. This increase in demand for materials has led to an increase in prices.
Corporate offices
With the advent of the home office, the offices occupancy in companies was much lower than normal. Hybrid solutions and changes in concepts regarding the offices utilization are being adopted not only in the country, but worldwide. Thus, the market for corporate buildings will have a significant reduction in demand and, therefore, investments in this segment should decrease dramatically.
Real estate
This year, the country reached the lowest interest rate in history, 2.25%. This benefited the acquisition of real estate through affordable financing. This led to heat up this market with many launches planned for the next years.
Photo: Booming real estate market – Albari Rosa – Gazeta do Povo
Infrastructure
Brazil has a significant infrastructure deficit. World Bank estimates indicate to the need for annual investments of 4.24% of GDP versus the current 2%.
The increase in infrastructure investments is one of the pillars that the government is betting on the resumption of the economy in the post pandemic. In addition to supplying the lack of infrastructure in Brazil, the works will generate a significant number of jobs.
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How to cite this report: Lopes, M. (2020). Project Management Report from São Paulo, PM World Journal, Vol. IX, Issue X, October. Available online at https://pmworldlibrary.net/wp-content/uploads/2020/10/pmwj98-Oct2020-Lopes-brazil-regional-report2.pdf
About the Author
Maurício Lopes
São Paulo, Brazil
Maurício Lopes, PMP is a Project Management Specialist. He is a PMP certified in 2000. He is a civil engineer with MBA in Project Management. He was one of the founders of the São Paulo PMI Chapter and Financial Director, Administrative Director, member of the Steering Committee from 1998 to 2003. He was vice-coordinator of the Project Management Division of the Engineering Institute of São Paulo from 1998 to 1999. Since 2004 Maurício Lopes has been speaking in project management courses for CPLAN, FATEC, INPG, IETEC and FIA. He has 20 years of experience in project management with main focus in the engineering & construction area. Currently, he is associate director of M2L Project Management (www.M2L.com.br), a company specialized in project management consulting and implementation operating in over 40 large engineering & construction projects. Maurício Lopes is author of articles for Revista Grandes Construções, a magazine specialized in engineering & construction, and he has the main characteristics related to project management – lean, practical and systematic ways. Mauricio is an International Correspondent for PM World Journal in Brazil. He can be contacted at mauricio.lopes@M2L.com.br.
To view other works by Maurício Lopes, visit his author showcase in the PM World Library at https://pmworldlibrary.net/authors/mauricio-lopes/
