Salvadoran Textile Factories Adjust Costs

With the increase in the electricity bill, businesses are looking to cut costs to avoid raising prices.

Thursday, April 16, 2009

The president of the Textile Industry, Clothing and Free Trade Zones Chamber in El Salvado (Camtex), José Tobar, explained in an Elmundo.com.sv article that adding the energy increase to prices would mean a loss of competitiveness for the Salvadoran sector when compared to other countries.

The website published: "Before assessing a price increase as a first option, savings strategies such as ‘Lean Manufacturing' to eliminate waste, improve quality and time and lower production costs, as well as investments in better technology have been implemented."

More on this topic

Salvadoran Entrepreneurs Criticize Withdrawal of Electricity Subsidy

March 2009

Industrialists and entrepreneurs have criticized the abrupt elimination of the electricity subsidy by the government.

The Government of El Salvador had committed to a reduction of the subsidy in parts, the last reduction to be made made in October 2009. This benefit applied to consumption of more than 99 Kw/h.

Costa Rica: Cost of Electricity Doubles That of U.S.

January 2014

The price paid by Costa Rican industry for electricity consumption is 41% higher than in the European Union and 259% higher than in the U.S.

Industry has expressed its anger against the rising cost of electricity as it is making production more expensive and exports are becoming less competitive against rival markets where energy is cheaper.

Costa Rica: Disinvestment in Manufacturing

July 2014

Businessmen in Costa Rica attribute the outflow of $31 million in the first quarter of the year to the close down of operations of businesses in the sector who have decided to move to neighboring countries.

The outflow of capital from the manufacturing industry during the first three months of this year is $7 million more than left the country in the same period in 2009, during the economic crisis in the United States, according to detailed figures from the Central Bank of Costa Rica.

Manufacturing Operations Move From Costa Rica to Nicaragua and El Salvador

February 2015

The company founded on Costa Rican capital, Jack's Foods, has announced that within five years it will transfer 50% of its production activities to Nicaragua, El Salvador and the United States.

From a statement issued by Alimentos Jack's:

Alimentos Jack's, a company founded on 100% Costa Rican capital, has decided to continue its expansion outside of Costa Rica and is planning to transfer 50% of its operations within five years, to the United States, El Salvador and Nicaragua.

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