Latin American HVAC/R Looks Hot
ACR Latino America cites Datamyne in optimistic outlook on compressor exports
It is no secret that much of the economic performance of Latin American countries depends on the performance of its major trading partners, which tend to be the developed economies, led by the U.S., writes Santiago Jaramillo in ACR Latino America, a leading trade publication in the HVAC/R and building automation sector. Hence the importance for these countries of creating strategies that aim at holding share of developed markets against rising competition from Asia, while cultivating new export markets within and beyond the Western Hemisphere.
In “2011: A Year of Consolidation,” Jaramillo reviews projections for Latin American growth from the UN Conference on Trade and Development (UNCTAD) in its World Economic Situation and Prospects 2011. UNCTAD expects that Latin America, which has been in the forefront of global economic recovery, can continue to experience solid growth, although not up to 2010’s pace. Dependence on export sales to the U.S. increases a national economy’s risk of slowing growth. Thus the region’s largest economy, Brazil (with the U.S. its second-ranked market, accounting for 10% of exports by value) is estimated to have expanded 7.6% in 2010, and is projected to grow 4.5% in 2011, 5.2% in 2012. The second largest economy, Mexico (with the U.S. its top-ranked market, accounting for 80% of exports by value) grew an estimated 5% in 2010, and is expected to grow 3.4% this year and 3.5% next. For developed economies, the UN estimates 1.9% expansion this year.
Prospects for Latin America’s HVAC/R sector look even brighter, based on trends in trade data on exports of compressors (components of air conditioning and refrigeration systems) provided to ACR by Datamyne. In 2010, Mexico increased exports of compressors by 24% as measured by value; Brazil’s increase exceeded 25%, Argentina’s was 14%, and Colombia achieved a 49% increase. When measured by number of units, Mexico shipped 23% more, Brazil 22%, and Colombia sold 65% more units. Industry commentators point to demand for refrigerated supply chains for food and greater acceptance of remanufactured compressors as driving increased sales overall.
Read the full story [in Spanish] here.
Date posted: January 25, 2011