The sector's union says that the strategy focused on producing fabrics and yarns for export is already paying off, and they intend to continue in order to become the region's main supplier.
According to the Chamber of the Textile, Clothing and Free Trade Zone (Camtex), exports of raw materials from El Salvador have grown considerably in the last two years, as between 2016 and 2017 sales increased from $60,000 to $1.2 million.
According to the textile industry union, half of the $2.6 billion exported in 2017 corresponded to pullover sweaters, cotton t-shirts, cotton briefs, synthetic fiber t-shirts and synthetic socks.
The Chamber of Textile, Clothing and Free Trade Zones of El Salvador (Camtex) reported that in 2017 the sector exported $2.617 million worth of clothes, $95 million more than was reported in 2016, which is equivalent to an interannual increase of 3.8%.
The textile guild has stated that 2017 closed with $2.6 billion in exports and an increase of almost 4%, and for this year it plans to achieve similar growth.
The Chamber of the Textile, Clothing and Free Trade Zone (Camtex) exported $2.617 billion during the past year, $95 million more than the value of exports registered in the previous year.
Salvadoran textile companies state that the costs of labor, security and delivery times have made the sector's operations more expensive.
The recentincrease in the minimum wageis one of the factors that has had a direct impact on the cost structure of Salvadoran textile companies. Added to this are logistical difficulties in customs offices, which have caused companies from neighboring countries to obtain contracts that were originally planned for El Salvador.
The Textile Industry Association reported a reduction of almost $17 million in value exported in the first quarter of the year, compared to the same period in the previous year.
Figures from the Chamber of Textile, Apparel and Free Trade Zones (Camtex) indicate that exports from January to April totaled $816 million, down from $833 million exported in the same period in 2016.
The Salvadoran union has stated that excessive bureaucracy and high production costs are the main factors that could be encouraging some textile mills to reduce operations in the country.
José Antonio Escobar, president of the Chamber of the Textile Industry, Clothing and Free Zones of El Salvador (Camtex) told Elsalvador.com that one of the companies that has shut down part of its operations, to transfer them to another country, is Fruit of the Loom.Escobar said"...'In the plant owned by Fruit of the Loom in the industrial park American Park, where a thousand people work, the company will make a reduction of about 850 positions'."
To compensate for the loss of market which is expected once the Transpacific Agreement takes effect, the textile industry intends to resume FTA negotiations with the northern country.
A free trade agreement with Canada would allow the exporting textile companies to enter a market with high potential, since according to theexecutive director of Camtex, Patricia Figueroa, the country imports more than $14,000 million a year in textiles products and confection of synthetics such and towels, carpets, curtains and tablecloths. "
A meeting is being convened for the textile and clothing industry on March 16 in El Salvador, where the overall situation in the sector will be discussed.
From a statement issued by Proesa:
El Salvador is preparing for the third edition of the Forum of Textiles and Apparel (FOROTEX) 2016, a space where high-level international speakers present trends and strategies for competing in international markets.
In the first half of the year sales of textiles and clothing totaled $1.247 billion, with a noteworthy annual increase of 21% in exports of textiles.
Data from the Chamber of Textiles, Clothing and Free Zones of El Salvador (Camtex) indicates that "... textile exports totaled $155 million, 21% more than in the first half of 2014, while ready-made apparel reached $1.092 million, up 5%. "
During the first six months of 2013 the textile industry sold $1,140 million, $104 million more compared to the same period in 2012.
"The industry has performed well, and that means more jobs in El Salvador," said Doris de Rivera, an economist in charge of the study by the Chamber of Textile, Clothing and Free Zones Companies(CAMTEX).
According to the economist, the maquila subsector grew by 4% with revenues of $424 million, woven fabrics increased 22% with sales of $134 million and garment production rose by 9%.
With a 4% increase in exports in 2012 compared to the previous year, the textile industry remains the main pillar of foreign trade in El Salvador.
Revenue from sales from the textile industry in El Salvador during 2012 totaled $2.1965 billion, $73.4 million more than in 2011.
Elmundo.com.sv reports that "In recent years, the textile and clothing sector has maintained an upward trend in foreign sales, to the point where exports account for 48% of the country’s total, stressed the Chamber of the Textile, Clothing and Free Zones of El Salvador (Camtex). "
From January to September this year the Salvadoran textile and clothing sector exported $792.4 million, 6.7% less than in the same period in 2011.
Elsalvador.com reports that "The production of textiles and clothing lost momentum in growth between January and September compared to the same period last year due to a slowdown in the U.S. economy and the fiscal crisis in Europe .
In the first eight months of the year maquila exports reported an increase in volume of 22.3% and 10.9% in value.
Data from the Central Reserve Bank shows that total exports reached $822.4 million up to August 2011.
"The executive director of the Chamber of the Textiles, Clothing and Free Zones (CAMTEX), Patricia Figueroa, said exports this year have already surpassed the levels recorded in 2008, which was considered to be an excellent year for the sector.
The Chamber of the Textiles, Clothing and Free Zones has presented a new proposal for the sector.
In 2010 the chamber had proposed a change in working hours from the 3.5 x 3.5 scheme, which means that employees work three and a half days and then rest for the same period of time, to change to working eight to twelve hours daily. This proposal has not been approved by the Ministry of Labour.
In 2010 the sector reported revenues of $ 1.793 million compared to $ 1.422 million in 2009.
Patricia Figueroa, director of the Chamber of Textile Apparel (CAMTEX), said they hope to continue growing in 2011 despite the increase in prices in raw materials, including cotton.
"Recently, CAMTEX noted that the increase in the price of key raw materials and inputs for production could not be completely absorbed by the companies.