Industrial Transformation Value Declines in University of São Paulo State Between 2007 and 2021

The Seade Foundation created a new platform, Seade Indústria , which presents a methodology developed by the entity to calculate the Industrial Transformation Value (VTI) of municipalities in the State of São Paulo. The procedure is carried out based on information provided by the São Paulo Finance and Planning Secretariat, combined with data made available by the Regional Accounts Systems. 

The Industrial Transformation Value is the difference between the gross value of industrial production (VBPI) and the cost of industrial operations (COI), according to Seade. This information indicates the strength of industry activity in a given region. 

Evolution of productivity

According to data from Fundação Seade, carried out in 2021, the territory of São Paulo corresponds to more than a third of the National VTI, representing 34.8% of all production in the country. However, in 2007, the State’s participation was 40.8%, that is, the period showed a 6% decrease in its total contribution.

24 industry sectors in the State of São Paulo were analyzed during this period and it was found that only two of them increased their contribution: chemical products services (growth of 4.3%) and printing and reproduction of recordings (increase of 0. 3%). On the other hand, the decrease in other sectors, such as the biofuel segment, which fell by around 40%, had an impact on the overall share.

The justification for this reduction in the contribution of the State of São Paulo is the evolution of industrial productivity. According to Seade, the income of industries in São Paulo grew by just over 1%, while in other states there was an increase of around 10%.