A mission of nine companies that supply aviation materials from the United States is visiting Brazil this week, looking for new business. For Elvis Perez, vice president of sales at Click Bond, Brazil offers an ideal scenario to receive investments.
“It’s a perfect time to invest here. Aerospace culture is in the DNA [do Brasil], there is a unique understanding of the industry and technology. This is combined with the momentum of the airline market, which is experiencing a recovery after the pandemic. And there is openness to new ideas,” says Perez, whose company supplies airplane fasteners, such as adhesives and screws, and earns $150 million a year.
“Companies like Embraer were very traditional and a little resistant to changes in the past. One of the things that the pandemic has shown is that it’s time to be open to new ideas and opportunities”, continues Perez.
Asked about the Brazilian political scenario, the executive says he trusts the solidity of the country. “We are a little concerned about the polarization in the political game at the moment. But at the same time, we are confident with the Brazilian people, the economy and the history of Brazil. The country is strong enough to survive this,” he said. “Regardless of the election, we will continue with our plans.”
Click Bond is considering creating a branch in the region of São José dos Campos, to supply parts to Embraer and to expand its business in Brazil. Today, the company sells around US$ 300,000 a year to the Brazilian manufacturer and estimates that it can negotiate between US$ 5 million and US$ 10 million a year, if the talks progress.
Perez came to Brazil as part of a trade mission, organized by the US government, to present business proposals from US suppliers. The US government wants to encourage imports of aeronautical materials from the US to Brazil, and vice versa.
The category generated $7 billion in US exports to Brazil in 2021, which represents 14% of total US exports to the country. The item is second only to ores and oil.
“Brazil has a very sophisticated aviation market, with few barriers to entry, which makes it an attractive option for US exporters. There are only six countries in the world that produce commercial jets, and there is continued strong demand for aviation,” said David Hodge, US consul general in São Paulo.
Most companies were invited after a process carried out by Embraer, which analyzed proposals from dozens of new suppliers and selected the most interesting ones to participate in face-to-face meetings. Negotiations to close deals will continue after the visit.
In addition to Embraer, suppliers spoke with representatives of other airlines in Brazil and had more than 160 meetings. Meetings with representatives of the military sector are also planned for the supply of defense equipment.
“I discovered here that Brazilian politics is very similar to the American one. And there is some complexity in doing business here, which can generate resistance from other American companies. But I see an opportunity there: where it is difficult for others to enter is the opportunity.” , comments Josh McCaughey, CEO of Fluid Mechanisms.
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