Textile Sector: Less Income, Less Jobs

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.

Thursday, September 17, 2020

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.

You may be interested in "Sportswear: Which brands dominate the market?"

According to data from the Office of Textiles and Apparel (Otexa), between January and July 2020, Nicaraguan textile exports to the U.S. amounted to $723 million, 28% less than what was reported in the same period in 2019.

Dean Garcia, executive director of the Nicaraguan Association of the Textile and Apparel Industry (Anitec), told Laprensa.com.ni that they maintain "... a non-aggressive policy regarding the placement of work orders because there is still a concern that there will be a rebound and a return to the same situation as in April (when the worst falls were reported), with large amounts of inventory in their warehouses, so they only ask for what they sell."

Garcia added that "... this crisis is very severe, for example, before the pandemic, exports in value were 160 to 170 million dollars per month, now we are at 114 million, it is good because it is a little higher than previous months, but in order to recover what was lost in previous months we would have to take out more than $200 million and it is very difficult, I think that with costs we will reach $1 billion this year."

Do you need to understand the new business environment of the textile sector? Contact Us








this site is protected by reCAPTCHA and Google's privacy policy and terms of service.
Need assistance? Contact us
(506) 4001-6423


More on this topic

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.

Covid-19: Forecast for the Textile Sector

March 2020

The impact that the crisis will have on companies related to the textile, leather and clothing sector in Central America is estimated to be explained, to a greater extent, by the expected drop in sales of carpets and curtains.

The "Information System for the Impact Analysis of Covid-19 on Business", developed by the Trade Intelligence Unit of CentralAmericaData, measures the degree of impact that the crisis will have on companies according to their sector or economic activity, during the coming months.

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.

Nicaragua: Clothing Market Decreasing

October 2018

Imports of footwear and clothing fell 8% in the first half of the year compared to the same period in 2017, and production in the country contracted by around 30%.

According to representatives of the guilds of the Nicaraguan Chamber of Leather Shoes (CNCC), and the Nicaraguan Chamber of Leather and Footwear (Camcunic), in the first six months the local production of clothing and footwear has decreased by about 30%.


 close (x)

Receive more news about Exports & imports

Suscribe FOR FREE to CentralAmericaDATA EXPRESS.
The most important news of Central America, every day.

Type in your e-mail address:

* Al suscribirse, estará aceptando los terminos y condiciones


Looking for Importers and distributors of furniture

Mexican manufacturer of office furniture seeks importers and distributors interested in dealing their products in Central America.
PM Steele is a 100% Mexican company, with more than 67...

Stock Indexes

(Apr 6)
Dow Jones
-5.60%
S&P 500
-5.10%
Nasdaq
-5.64%

Commodities

(Oct 30)
Brent Crude Oil
38.320
Coffee "C"
106.85
Gold
1,879
Silver
23.715