The Textile Industry and its Potential

After a 7% increase in exports during 2018, Guatemala's apparel and textile sector expects to reach $2 billion in sales this year.

Thursday, January 24, 2019

Factors such as the crisis in Nicaragua and an increase in customer demand in the United States partly explain the growth reported last year by textile companies in Guatemala.

The political situation in neighboring Nicaragua led to an increase in the number of work orders, and the 8% increase in U.S. demand explained much of the results reported last year.

According to data from the Bank of Guatemala (Banguat), during the first 11 months of last year sales of costume items to the U.S. represented 91% of the total sold by local companies.

Figures show that between January and November 2017, and the same period in 2018, exports to the U.S. registered an 8% increase, going from $1.111 million to $1.200 million.

You may be interested in “Clothing: Imports increase 3% reviews that "... Following the increased demand observed and expectations for this year, Alejandro Ceballos, chairman of the Costume and Textile Commission (Vestex), attached to Agexport, confirmed that there was movement of capital mostly local. He indicated that the amount of investment in machinery, equipment and expansion of plants, especially of fabrics and yarn spinners, is US$60 million, both in factories installed in the metropolitan area and in San Juan Sacatepéquez and Palín, Escuintla. In addition, some factories (textiles and assemblers) that faced liquidity problems were rescued to meet the volumes of orders, which even work on weekends, a phenomenon that was observed in the second half of the year and continues that rhythm in 2019.

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Textile Sector Begins 2019 Upwards

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