Nicaraguan Industry: Growth Threatened by Costs

Employers argue that the high costs of energy, transportation and social contributions are affecting performance of the sector.

Tuesday, January 28, 2014

The high costs of transportation, electricity and the new increase in employer social security contributions is threatening the industrial sector, despite the fact that in 2013 it grew by 4.6%. These factors, according to Rodrigo Caldera, president of the Chamber of Industries (Cadin), are preventing further growth of the sector.

Sugar mills for example, require large volumes of fuel to move forward with production. "... The fuel cost represents 40% of the total production costs of the sweetener," said Mario Amador, CEO of the National Committee of Sugar Producers (CNPA by its initials in Spanish).

"We have to transport millions of products from the cane fields to the mills and from the mills to the cane fields, that means hundreds of thousands of trips by trucks, vans and tractors, among others," he added.

More on this topic

Energy Tariff Increase Applies

July 2019

A 3% increase in the cost of electricity came into effect in El Salvador on July 15, when the rate per megawatt hour rose from $139.77 to $143.82.

The decision to increase the tariff was taken because of the lack of rain, which in the last quarter has led to a decrease in hydroelectric power generation. Added to this, the participation of the sugar mills, which generate electricity from sugar cane bagasse, was reduced.

Costa Rica: High Cost of Electricity Reducing Competitiveness

February 2014

Employers are complaining that the cost of electricity is the factor which is pushing up production costs the most.

From a press release issued by the Costa Rican Union of Chambers and Associations of Private Business Sector (UCCAEP):

"The cost of electricity is the factor that is pushing up production costs for companies in Costa Rica the most.

Industry Forum in Costa Rica Discusses High Cost of Energy

June 2013

The 38% increase in electricity costs in the last 14 months has strongly affected the cost of production, causing a loss in competitiveness for domestic production.

A statement from the Chamber of Industries of Costa Rica (CICR) reads:

Industrialists propose joint solutions to the high cost of electricity

El Salvador: Soaring Energy Prices Uncompetitive

January 2011

The Salvadoran Industrial Association urges the Government to implement energy saving measures and the efficient use of energy.

According to ASI, the energy issue is of vital importance for the industrial sector in view that electricity is one of the highest costs of any industry.

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