Maquila: Production Keeps Rising in Honduras

Between 2017 and 2018, the Added Value of Production of the Maquila industry in the country increased by 8.2%, and by 2019 the increase is expected to be 7%.

Friday, October 18, 2019

The Gross Added Value (GVA) of the maquila registered in 2018 an amount of $1.452 million, $110 million higher than the previous year, informed the Central Bank of Honduras (BCH).

The report states that "... In the year under analysis, the maquila, was positioned within the Manufacturing Industry as one of the main economic activities to register a share of 26.0% to the total and 4.4% in relation to GDP, mainly explained by constant innovation and technological improvement in the production stages of the maquila, as well as the implementation of a strategy of strengthening, sustainability and growth of the Industry.

In 2018 the personnel employed by the maquiladora companies was 139,641 people, higher by 7,443 jobs compared to the level of 2017; translating into 30.1% of the total labor force of the Manufacturing Industry. With respect to the total Economically Active Population (EAP), the representation of the maquila remained at 3.2%.

By the end of 2019, a 6.7% increase is estimated in the gross production value mainly associated to the expected behavior in the foreign demand favored by the commercial tensions between the US and China, therefore it is forecast that the exportations of clothing will reach levels that would be around US$4,400.0 million, higher by approximately US$175.0 million regarding the observed in the same period of 2018 (US$4,263.1 million).

For 2020, a positive rate is projected in the production between 6.5%-7.0%, that would be attributed to greater investment and a dynamization of external demand that will grow in a range of 2.5% and 3.0%, mainly explained by the boom of the markets in emerging and developing countries
."

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More on this topic

Honduras: Maquila Exports up to the Q3 2018

November 2018

In the first nine months, sales of transformation goods totaled $3.220 million, of which $2.637 million came from the textile industry.

The result of the commercial balance of goods for transformation (Maquila), accumulated to the third quarter of 2018, showed a surplus of US$1,024.1 million; behavior derived from the year-on-year increase of 4.0% in exportations, which totaled US$3,219.7 million in the mentioned period, partly counteracted by imports of raw materials of US$2,195.5 million, informed the Central Bank of Honduras.

Maquila: More production in Honduras

October 2018

Basically explained by the rebound in external demand, the Gross Production Value of the maquiladora industry in the country increased by 3.9% between 2016 and 2017.

According to the results of the annual survey 2017 directed to the companies of the Industry of Transformation Goods (Maquila) and Related Activities, the Gross Value of Production in the current values of the maquiladora industry increased in 3.9% inter-annually (-0.1% in 2016), basically explained by the rebound in external demand. On the other hand, foreign direct investment in maquila activities increased 21.3%, associated with greater capital contributions for the construction of new textile plants and the expansion of the harness industry, reported the Central Bank of Honduras BCH.

El Salvador: Exports Up 4% in July 2018

September 2018

The manufacturing industry, including maquilas, accounted for 96% of total exports, and closed with an annual growth rate of almost 4%, equivalent to $130 million.

From a statement issued by the Central Reserve Bank:

Exports of goods from El Salvador amounted to US $3.5596 billion between January and July 2018, higher by US $124.5 million compared to the same period in 2017, the Central Reserve Bank reported.

El Salvador: Exports Up 3% in March 2018

May 2018

In the third month of the year, exports of goods grew by 3% with respect to the same period in 2017, and the increase was mainly due to sales of the maquila and agricultural sectors.

From a report by the Central Bank of Honduras:

At the end of the first quarter of 2018, Salvadoran exports of goods amounted to US $1.4825 billion, higher by US $44.9 million than in the same period in 2017, which meant a year-on-year growth of 3.1%, the Central Reserve Bank reported.

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