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Rio Grande do Sul's Recovery: Companies Gaining Momentum Toward Normalcy

  • According to the Omie Index of Economic Performance for SMEs (IODE-SMEs), small and medium-sized enterprises showed a 9.7% revenue growth in June.
  • Possible shortages of supplies could be a concern for the future.

Tiago Alves, CEO of Regus/Spaces | Photo: EPA-EFE/Daniel Marenco (background) and Disclosure (executive)
Tiago Alves, CEO of Regus/Spaces | Photo: EPA-EFE/Daniel Marenco (background) and Disclosure (executive)
By: SiiLA News
07/30/2024

After a long period of rain and floods, Rio Grande do Sul is undergoing a reconstruction phase. According to the National Confederation of Municipalities (CNM), the damage caused by the climate crisis exceeded R$ 12.5 billion directly. According to the latest state government bulletin (July, 8th), 478 municipalities were affected, and more than 2.3 million people were directly or indirectly impacted.

The region along the Guaíba River in eastern Rio Grande do Sul was among the hardest hit, directly affecting the capital Porto Alegre, and its surrounding cities. With an office inventory totaling 351,000 m², the majority of the rain-affected properties are located in Porto Alegre city.

Tiago Alves, CEO at Regus/Spaces, spoke with REsource about the impact on their Regus unit during this period. He noted that while the Regus Guaíba unit itself was not directly affected, the Centro Empresarial Guaíba region was flooded and remains inoperative.

"One of our units, Regus Guaíba, which is right in front of the Guaíba River, was not directly affected. However, the building where the office is located was flooded, and because of this, the space is still out of operation. Activities are expected to return to normal at the beginning of next month," Alves predicts.

The CEO explains that the financial impact is significant because, with the unit closed, many of their clients had to cancel their contracts. Currently, the company is negotiating with the clients of the Guaíba unit, and they have kept their second unit operational, adopting an open-door policy to accommodate people needing Wi-Fi during the crisis.

"Many entrepreneurs whose offices were impacted by the floods ended up migrating to our unit located on Av. Carlos Gomes, not only hiring the flexible office service but also taking advantage of the membership benefit for their teams to have a safe and comfortable place to work, given the situation. This unit is operating almost at full capacity at the moment, and we expect to open a new Regus unit in the region in November this year," says Alves.

On the public side, the state government created the MEI RS Calamities program, an incentive program for individual micro-entrepreneurs affected by the floods. According to the official website, R$ 96 million is expected to be allocated to 22,000 micro-entrepreneurs who meet the criteria.

CNM data estimates a loss of over R$ 132 million in local commerce and R$ 89 million in services.

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