Extrema (MG) is Brazil’s main e-commerce hub

One in 4 merchandise offered in Brazilian e-commerce leaves a distribution middle within the metropolis of Extrema in Minas Gerais. Lately, the municipality has turn into an exponent for the logistics sector and has attracted a whole lot of corporations. Behind this enticing energy is the mix of the geographical place – solely 100 km from the capital São Paulo, the principle financial middle of the nation – with a extra favorable state tax: the tax fee on the Circulation of Items and Providers (ICMS) is with the somewhat 50% decrease than São Paulo for interstate gross sales.

Through the pandemic, e-commerce in Brazil took a leap, which led corporations to spend money on their distribution facilities in Extrema. Confronted with this situation, the town has seen its inhabitants improve, which at present is already mirrored in an actual property disaster, given the elevated demand for homes, flats and even resort vacancies for employees who wish to settle within the municipality.

Information from the Brazilian Institute of Geography and Statistics (IBGE) point out that the municipality had, in 2021, 37 thousand inhabitants. Nevertheless, a survey carried out by the prefecture of Extrema mapped about 53 thousand inhabitants of the town, which represents a inhabitants improve of 43% in two years. The knowledge was compiled by the Municipal Well being Directorate to grasp the quantity of covid-19 vaccines that might be utilized.

Along with the exponential improve within the variety of inhabitants, the town additionally receives round 10,000 floating employees day by day, i.e. individuals who work in native distribution facilities however stay in close by municipalities. “Corporations have a constitution bus scheme that takes them to neighboring cities similar to Itapeva, Pouso Alegre and Bragança Paulista. There are individuals who come right here day by day from São Paulo,” reviews Extrema’s financial improvement supervisor, Mônica Vieira.

As we speak, the municipality of Minas Gerais has 6,000 registered CNPJs, of which 300 are from the commercial sector. “To start with, we knocked on the doorways of corporations, inviting them to settle in Extrema. Now, they’re those coming to us to arrange companies right here,” he remembers.


With the emergence of corporations and new residents, discovering a spot to stay in Extrema has turn into a tough process. Actual property proprietor Ricardo Di Lorenzo says demand for actual property has elevated. He reviews that it’s already virtually not possible to seek out rental and sale choices in probably the most coveted areas of the town. “There is no home on the town to supply purchasers,” he says.

To attempt to meet the demand, Extrema talked with development corporations with the goal of attracting actual property initiatives. In 2021, the businesses HM Engenharia and BRZ Ventures introduced an funding of 400 million BRL for the development of 1,300 residential items. As well as, the municipality has already authorized the development of one other 3,000 residential tons. In line with native enterprise folks interviewed by the report, the housing scarcity varies between 15,000 and 20,000 items.

The rise in demand for warehouses for distribution facilities, a motion that intensified at first of the pandemic, doesn’t appear to be over. As Estadão found, the following large to open a distribution middle within the metropolis is Italian sportswear model Fila. For now, though it has gone underneath the hammer, the corporate nonetheless does not have a date for the native operation to open.

Those that go by way of the town see, along with the panorama of the mountains of Minas Gerais, a number of works in progress for the longer term industrial halls. The president of Fulwood Condomínios Logísticos, Gilson Schilis, explains that probably the most sought-after mannequin of corporations are the so-called “huge containers” – land with greater than 50 thousand sq. meters. “We’re ending a 100,000-square-meter undertaking in 2022. For subsequent yr, we have already got one other undertaking of 210,000 sq. meters, which is able to accommodate the operation of a multinational firm”

All these investments have a constructive affect on the labor market. Information from the Basic Register of the Employed and Unemployed (CAGED) point out that, within the final yr, greater than 4,500 jobs have been created in Extrema, one of the best efficiency within the state. With most of those alternatives within the logistics sector, corporations which are already put in within the municipality should make an effort to retain staff who’ve been harassed by opponents.

That is the case of Mercado Livre’s loss prevention and loss supervisor, Ariana Ribeiro. After working for 12 years at a nationwide on-line sporting items retailer, the worker acquired a suggestion from the Argentine e-commerce large. “With this market heating up in the course of the pandemic, corporations wanted to enhance wages and advantages to compete with opponents. So I made a decision to alter my job.”

the challenges forward

For Ricardo Taborda, companion at 7D – an organization specialised in logistics options -, the low availability of properties and land for constructing warehouses can have an effect on the choice of corporations to decide on the municipality of Minas Gerais as a brand new logistics tackle. “The acute is one of the best place we’ve got at present, however something that modifications in relation to those two factors can take away the town’s enchantment within the eyes of traders,” he says.

In Taborda’s view, the town goes by way of a defining second in its consolidation as a nationwide hub of distribution facilities – and might want to present labor in addition to construction for these arriving within the municipality. “It is a window of alternative that Extrema has. When the tax reform occurs, they is probably not so enticing from a fiscal standpoint, so it’s time to make investments in order that the town can develop and turn into fascinating even after the incentives finish,” he assesses.

(Wesley Gonsalves/AE)

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