Textile sector: Production Becomes More Expensive in El Salvador

Salvadoran textile companies state that the costs of labor, security and delivery times have made the sector's operations more expensive.

Thursday, December 21, 2017

The recent increase in the minimum wage is one of the factors that has had a direct impact on the cost structure of Salvadoran textile companies. Added to this are logistical difficulties in customs offices, which have caused companies from neighboring countries to obtain contracts that were originally planned for El Salvador.

See: "Textiles and Supplies Market in Central America"

José Antonio Escobar, president of the Chamber of Textile, Clothing and Free Trade Zones in El Salvador, told Eldiariodehoy.com that in their view " ... customs has been a tremendous problem, of the most traumatic things that has happened to us."

Regarding investments that have migrated to neighboring countries, it was confirmed that " ... there are at least 3 or 4 projects that are in Honduras and Nicaragua, which were not done here and were considered."

More on this topic

Mixed Results for the Textile Industry in 2017

December 2017

Salvadoran textile companies report that between January and October exports of textiles and clothing grew by 3%, but the maquila sector went down by almost 9% compared to the same period in 2016.

Patricia Figueroa, executive director of the Chamber of the Textile, Clothing and Free Trade Zone (Camtex), explained to Laprensagrafica.com that "...

El Salvador: Textile Industry Lose Competitiveness

March 2017

The Salvadoran union has stated that excessive bureaucracy and high production costs are the main factors that could be encouraging some textile mills to reduce operations in the country.

José Antonio Escobar, president of the Chamber of the Textile Industry, Clothing and Free Zones of El Salvador (Camtex) told Elsalvador.com that one of the companies that has shut down part of its operations, to transfer them to another country, is Fruit of the Loom. Escobar said   "...'In the plant owned by Fruit of the Loom in the industrial park American Park, where a thousand people work, the company will make a reduction of about 850 positions'."

Honduras: $73 million Textile Plant

February 2017

The new plant, which a Honduran and Salvadoran consortium have started building in Choloma, will have capacity to produce 200,000 tons of synthetic yarn per year.

In the construction and commissioning of the plant manufacturing synthetic yarn, the company Unitexa has invested $73 million and it is expected that it will start operating within one year.

Honduras: $1.946 billion in Maquila Exports

September 2014

80% of the volume exported by the Honduran maquila sector in the first half of 2014 corresponds to textiles, 15% to harnesses, and the remaining 5% to other goods.

A report by the Central Bank of Honduras (BCH) specifies that when comparing the figure for the first half of this year with the same period of 2013, "... A slight increase of $8.2 million is observed. "

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