During the first weeks of 2021, interest in children's clothing measured by online searches and mentions in conversations in the digital environment, increased in Panama and Guatemala, and decreased in the case of the other markets in the region.
Through a system that monitors in real time changes in consumer interests and preferences in Central American countries, developed by CentralAmericaData, it is possible to project short and long term demand trends for the different products, services, sectors and markets operating in the region.
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.
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.
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.
Following the spread of the virus globally and the suspension of some production in China, several garment companies in the region have reported increases in their orders.
The spread of the epidemic has stopped much of the economic activity of the Asian giant, which is the largest exporter of textiles in the world. This situation has forced buyers to look for alternatives.
Grupo Elcatex inaugurated the first phase of the San Juan Innovation Park in Choloma, which has 107 thousand square meters of construction and required an initial investment of $240 million.
In its first stage of development the industrial complex has a cotton spinning and blending plant, a textile plant and an electricity generating plant with a capacity of 57 MW.
Between 2017 and 2018, the Added Value of Production of the Maquila industry in the country increased by 8.2%, and by 2019 the increase is expected to be 7%.
The Gross Added Value (GVA) of the maquila registered in 2018 an amount of $1.452 million, $110 million higher than the previous year, informed the Central Bank of Honduras (BCH).
Because there is still no regulation for part-time employment in Guatemala, textile businessmen estimate that the country loses between 40 and 70 thousand jobs.
For representatives of the Costume and Textile Commission (Vestex), the high operating and labor costs in Guatemala cause businessmen to send cut pieces to Honduras, El Salvador and Nicaragua to be assembled.
In the first nine months, sales of transformation goods totaled $3.220 million, of which $2.637 million came from the textile industry.
The result of the commercial balance of goods for transformation (Maquila), accumulated to the third quarter of 2018, showed a surplus of US$1,024.1 million; behavior derived from the year-on-year increase of 4.0% in exportations, which totaled US$3,219.7 million in the mentioned period, partly counteracted by imports of raw materials of US$2,195.5 million, informed the Central Bank of Honduras.
Imports of garments and clothing accessories reached $332 million during the first three months of the year, 3% more than what was reported in the same period in 2017.
Figures from the information system of the Central American Clothing and Clothing Accessories Market, from the Trade Intelligence Area of CentralAmericaData: [GRAFICA caption="Click to interact with the graph"]
Basically explained by the rebound in external demand, the Gross Production Value of the maquiladora industry in the country increased by 3.9% between 2016 and 2017.
According to the results of the annual survey 2017 directed to the companies of the Industry of Transformation Goods (Maquila) and Related Activities, the Gross Value of Production in the current values of the maquiladora industry increased in 3.9% inter-annually (-0.1% in 2016), basically explained by the rebound in external demand. On the other hand, foreign direct investment in maquila activities increased 21.3%, associated with greater capital contributions for the construction of new textile plants and the expansion of the harness industry, reported the Central Bank of Honduras BCH.
In Honduras, the goal that companies in the sector have set is to create 15,000 jobs in 2018, and the number of posts generated from January to August adds up to 11,234.
According to figures from the Honduran Maquila Association (AHM) at the end of 2017 the number of positions in companies in the sector totaled 145,595, and the goal they have set is to end 2018 with 160,000 people working in maquilas.
In the first quarter of the year, companies in the country imported $5 million worth of yarns and textile supplies, 15% more than what was purchased in the same period in 2017.
Figures from the Information System on the Textile and Textile Supplies Market in Honduras, compiled by the Business Intelligence Unit at CentralAmericaData: [GRAFICA caption = "Click to interact with the graph"]
In Honduras, the union of maquiladoras reported that in June 2018 jobs in the sector totaled 151,667, 4% more than those reported in December 2017.
During the first half of the year, the Honduran Maquila Association (AHM) recorded an increase of 6,072 jobs, rising from 145,595 at the end of 2017 to 151,667 at June 2018.
The increases range from 3.9% to 6.15%, depending on the number of employees on the payroll and the economic activity to which the company is dedicated.
The increase applies from January 1, and will be 3.9% for companies with between 1 and 50 employees, 5.5% for those with between 51 and 150 employees, and 6.15% for companies that have more than 150 workers.
Exports of goods for processing in the first half of 2017 totaled $1,992 million, of which $1,624 million corresponded to the textile industry.
From the report "Foreign trade of goods for transformation up to the second quarter of 2017" by the Central Bank:
Honduran exports of goods for processing in the first half of 2017 totaled US $1,992.0 million, up by US $11.4 million (0.6%)comparedto June of the previous year (down 6.3%). This result is particularly associated with the rise of textiles and manufactured fibers (polyester yarns), destined - mostly - for the United States of America (USA) and Central America.