The relative merits of Nicaragua in safety, productivity and the low cost of labor are posing a serious threat to the textile industry in Honduras.
As noted in an article in Laprensa.hn, the Association of Textile Producers of Honduras, said that "an average of 16 textile factories have migrated from the country and have settled in Nicaragua and El Salvador."
Two new textile plants will begin operations this year in Nicaragua after closing operations in Honduras.
Once operating, these two plants will generate 2.000 new jobs in the Nicaraguan textile sector, as they aim to double their current capacity in Honduras.
While in Nicaragua the opening of these plants is cause for celebration, there are mixed feelings in Honduras.
The cost of labor is critical for textile companies which migrate from Honduras to El Salvador and Nicaragua, where wages are lower.
Daniel Facussé, president of the Honduran Manufacturers Association (AHM), states that 16 textile companies have moved their operations from Honduras to Nicaragua and El Salvador since the end of 2008.
For the Businessman, the main reason is the difference in wages between Honduras and its neighbors.