9 – Administrative Region: Franca

General Overview:

·         Franca is a major footwear industry hub, with strong leather and shoe production.

·         Diversified agribusiness sector, with highlights in sugar, pork, dairy, animal feed, and agricultural machinery production.

·         Region recognized as the leading coffee producer in the State of São Paulo.

·         Two local development hubs: Leather & Footwear and Health & Pharmaceuticals.

Economic and Technological Highlights:

·         High employment generation in the food and footwear sectors, which together account for over 70% of formal industrial employment.

·         The Leather and Footwear Laboratory at IPT supports technological innovation.

·         Coffee production shows strong potential for value addition through new equipment and techniques.

·         Growing investments in precision agriculture, IT, and export-oriented logistics terminals.

Strategic Sectors in the Region:

·         Leather and Footwear

·         Food and Agribusiness

·         Agricultural and Livestock Machinery and Equipment

·         Chemicals, Plastics, and Rubber

Socioeconomic Data:

·         Estimated population: approximately 747,000 inhabitants (2018)

·         Approximate regional GDP: R$ 25.1 billion (2018)

·         12 municipalities with population growth above the regional average

·         Presence of concentrated productive clusters, especially in leather/footwear and agricultural machinery

·         About 10.5% of the population lives in municipalities with lower socioeconomic indicators (IPRS)

SWOT Analysis:

Strengths:

·         Demographic growth above the state average in several municipalities

·         Well-established productive clusters in the footwear and agricultural machinery sectors

·         Strategic location for distribution between São Paulo and Minas Gerais

·         Notable innovation supported by IPT in the leather sector

Weaknesses:

·         Industrial structure is concentrated, with 76.2% of production tied to just two sectors

·         Presence of population in municipalities with low wealth, longevity, and education indicators

 Opportunities:

·         Modernization of sugarcane fields and adoption of precision agriculture

·         Innovation in design and processes in the leather sector

·         Expansion of specialty coffee production and tilapia farming focused on export markets

·         Growth potential in agricultural machinery and equipment, as well as plastics, rubber, and chemicals

·         Development of biofuels and sustainable technologies

Threats:

·         Vulnerability to fluctuations and trade barriers in international agricultural markets

·         Strong foreign competition in the coffee sector (e.g., Indonesia, Honduras, Uganda)

·         Challenges in the footwear industry such as exchange rate volatility, high tax burden, bureaucracy, and logistical issues that hinder export competitiveness

Employment and Education:

·         Sharp increase in formal employment requiring complete high school or incomplete higher education (from 28.4% to 49.2% between 2006 and 2016)

·         Sectors with the highest concentration of these education levels: machinery and equipment, leather and footwear

Distribution of Industrial Jobs:

·         76.2% of industrial jobs are concentrated in strategic sectors such as leather and footwear, machinery and equipment, and food

·         High-revenue sectors also include plastics and rubber, chemicals, beverages, and textiles

Main Sectors by Employment:

·         Leather and Footwear

·         Machinery and Equipment

·         Food

·         Textiles

·         Chemicals

·         Plastics and Rubber

·         Beverages

Investments (2010–2017):

·         Industry: US$ 163.64 million, mainly in food products

·         Services: US$ 152.82 million, with highlights in education (35%), real estate (13.4%), and health (4.7%)

Export Participation (2016):

·         Exports mostly composed of low-tech products (83.3%)

·         Accounts for approximately 0.9% of the State of São Paulo's total exports

 Municipalities in the Franca Administrative Region (23 municipalities):

1. Aramina

2. Batatais

3. Buritizal

4. Cristais Paulista

5. Franca

6. Guará

7. Igarapava

8. Itirapuã

9. Ituverava

10. Jeriquara

11. Miguelópolis

12. Patrocínio Paulista

13. Pedregulho

14. Restinga

15. Ribeirão Corrente

16. Rifaina

17. São José da Bela Vista

18. Ipuã

19. Morro Agudo

20. Nuporanga

21. Orlândia

22. Sales Oliveira

23. São Joaquim da Barra