Demand for Textiles Stagnates

After strong growth in the early part of the year, textile mills in the free zones of Nicaragua are reducing their workforce due to falling orders from the U.S.

Thursday, June 7, 2012

In January and February, customer demand in the U.S. grew by 55%, but has declined in recent months according to the growth of inventories, said representatives of companies in the textile zones.

The situation has led to a reduction of staff - earlier this year there were 110,000 employees in businesses in the sector, confirmed Dean Garcia, executive director of the Nicaraguan Association of Textile and Apparel companies (Anitec).

Garcia said that orders have been received orders from Brazil, for some 20,000 items, but because Brazilian tariffs push up costs, they have asked that the Ministry of Development, Industry and Trade expedites the signing of the Latin American Integration Association (ALADI) protocols, where list of priority products to market are established.

More on this topic

Less Employment in Free Trade Zones

June 2019

The decline in the number of companies in Nicaragua's free trade zones partly explains the loss of nearly 1,700 jobs in the first two months of the year.

Figures from the Central Bank of Nicaragua (BCN) show that between December 2018 and February 2019, the number of workers decreased by 1,697, from 125,550 to 123,853.

Woven Fabric Production in Nicaragua

November 2012

Millknit Industries will begin operations in early 2013, producing fabrics for clothing companies established in the free zones.

Following the closure of Core Denim in 2009, Nicaragua has had no cloth production, which is a disadvantage for the clothing sector, which has to import its raw materials.

Nicaragua: Streamlined Procedures in Free Zones

July 2011

The reactivation of the Comisión Aduanera de Zonas Francas (Customs Free Zone Comission) will speed up the processing of this sector's imports and exports.

The executive director of the Nicaraguan Association of Textiles, Anitec, Dean Garcia Foster, said that in addition to streamlining procedures it will also create savings in operating costs.

Record Employment at Nicaraguan Free Trade Zones

March 2011

Companies operating under the free zone regime reported a total of 89.927 employees to December 3, 2010.

According to the Central Bank of Nicaragua, this is the highest number of jobs for the sector, since February 2008 when 89.198 persons were employed.

Representatives of the textile sector, which own the majority of the 148 companies operating under the free zone regime, state there are 2 factors leading to employment recovery,"... tripartite working arrangements and the U.S. market recovery, Nicaragua's largest trading partner," reported

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