Textile Industry with Subsistence Income

Against the backdrop of an imbalance in trade and restrictions decreed in several markets around the world, Central American companies in the garment business are operating and generating export earnings at levels that merely allow them to subsist.

Thursday, August 13, 2020

Data from the Office of Textiles and Apparel, of the U.S. International Trade Administration, say that between the first half of 2019 and the same period in 2020, Central American textile exports to the U.S. decreased by 34%, from $ 17,593 million to $ 11,553 million.

According to official figures, from January to June this year, Panama, El Salvador and Honduras, were the Central American countries that most reduced their sales to the United States, registering -49%, -48% and -47% variations, in that order. In the cases of Costa Rica, Nicaragua and Guatemala, were the least affected, reporting falls of 30%, 27% and 25%, respectively.

You may be interested in "Sportswear: Which Brands Lead the Market?"

Dean García, executive director of the Nicaraguan Association of the Textile and Clothing Industry (Anitec), told Laprensa.com.ni that "... the crisis being experienced with the coronavirus, where the whole region has been affected, is much harder than the one experienced in 2009."

Garcia added that at the moment "... companies are working to survive only, the pandemic has caused a global imbalance, affected all economies, and seeing the current panorama the problem is that the resurgence has not allowed the economy to stabilize and that' s affecting it strongly."

Also see "Covid-19: Forecast for the Textile Sector"

Among the changes that are taking place in the clothing market is that clothing stores have migrated to online sales to try to maintain their sales levels, however, revenues have not been enough and in most cases considerable losses have been recorded.

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More on this topic

Textile Sector: Less Income, Less Jobs

September 2020

After the impact caused by the covid-19 outbreak, Nicaraguan businessmen in the sector estimate that in the first seven months of the year the maquila industry have stopped exporting close to $300 million and have had to lay off some 6 thousand employees.

The drop in demand in the United States, which is one of the main destination markets for exports of clothing made in Nicaragua, explains part of the drop in income for companies operating in the country.

Textile Sector: Poor Outlook

June 2020

Uncertainty over a possible second wave of covid-19 cases globally will prevent Salvadoran textile industry exports from recovering for the rest of 2020.

Official data show that from January to May 2020, El Salvador's exports in the textile and clothing sector amounted to $619 million, an amount that is 42% lower than the $1,072 million registered in the same period in 2019.

Nicaragua: Outlook for the Textile Sector

March 2020

According to businessmen in the country's textile sector, as a result of the covid-19 pandemic, a reduction in work orders is expected during the second half of the year.

Representatives of the Nicaraguan Association of the Textile and Clothing Industry (Anitec), predict that with the closure of the stores of several of their clients, sales will be reduced considerably and inventory levels will increase.

Textile Sector in 2020: Optimism in Nicaragua

January 2020

Despite global threats, such as the possibility of a global economic slowdown, businessmen in the sector are confident that their sales will continue to rise.

Companies operating under the free zone regime in the country, estimate that their sales abroad during 2019 amounted to about $ 1.7 billion, an amount that exceeds by 5% what was recorded in 2018.

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