A Guatemalan corrugated steel manufacturer has pointed out that zinc sheets imported from China are being sold at prices below the cost of sales at origin.
A drop in sales, shutdown of equipment and staff layoffs are the causes of the alleged dumping in the corrugated steel market, concludes a preliminary investigation conducted by the Ministry of Economy (Mineco) in response to a complaint lodged by the manufacturer Ternium.
Businessmen are decrying a lack of technical support from the State and difficulty in accessing bank financing.
Since 2012 nearly 450 workshops making handmade furniture in San Juan Sacatepequez have closed. A study by the Association for the Development of Communications reveals that a lack of funding, investment in machinery and technical support, are negatively affecting this sector.
Exports of screws, sheeting, shoes, chemicals, leather and oil, among others, amounted to $1.328 billion during 2013.
From a press release issued by the Guatemalan Association of Exporters (Agexport):
Miscellaneous Articles, one of 5 major sub sectors of the Guatemalan Manufacturing sector, placed in the international market this 2013, products such as screws, sheeting, shoes, stoves, chemicals, pharmaceuticals, leather, paints and thirty-seven other products which in total closed 2013 with sales abroad worth $1.328 billion.
Opening up markets in the Caribbean is one of the strategic initiatives to support the 6% annual growth in the manufacturing sector.
A statement from AGEXPORT reads:
Because of the economic impact that the Manufacturing Sector has on the development of Guatemala, the industry has developed a strategy with systematic actions to contribute to the realization of unique value propositions in all sub sectors which will result in competitive advantages and thereby maintain global markets. This strategy, together with the international expert in innovation, Mario Morales, aims to give Guatemalan SMEs more tools.
The delay in the allocation of foreign currency for international payments to suppliers has caused Venezuelan industrial companies to owe some $5 billion to international suppliers.
The problem for exporters in the Colon Free Zone over non-payment of goods sold to importers in Venezuela is not isolated, and creates problems not only outside the Bolivarian country, but also for its own industry.
China is losing its cheap labor advantage, opening opportunities for growth in the manufacturing sectors of countries like Nicaragua.
According to a report by Stratfor, a geopolitical intelligence firm based in Texas, "China's economic problems have opened the door to 16 different countries, including Ethiopia, Mexico, Indonesia and Peru, to become global forces in the growth of the manufacturing sector, "noted an article in Americaeconomia.com.
Coffee sales decreased by 30.1%, going from $408.2 million generated in the first quarter of 2012, to $282 million this 2013, ie a decrease of $122.9 million.
Regarding exports of petroleum, iron and steel, these declined by 26.1% and 25.6%, respectively, while rubber fell by 19.3%.
"The Bank of Guatemala (Banguat) reported that as of April, foreign currency exports totaled $3.538 billion, an increase of just 0.7%, compared with the same period in 2012," noted an article in Elperiodico.gt.
In April and May, two Peruvian trade mission will visit Panama, Costa Rica and Guatemala in search of business opportunities.
The Exporters Association of Peru (ADEX) has organized two trade missions from companies from various sectors and foreign trade students from Peru.
Gestion.pe reports that "the first exploration mission from the imports and logistics sector will be held from 16th to 20th of April in Panama and aims at learning about the trade and development opportunities in this country which trades with the world more than $18 billion and through which passes 14,000 ships and more than 12 million containers a year. "
With a 2.63% increase compared to 2011, Miscellaneous Goods continues to position itself as the most dynamic sector in manufacturing exports.
From a press release issued by the Guatemalan Association of Exports (AGEXPORT):
Miscellaneous Goods, one of the founder sectors of Guatemalan exports, has managed to boost export of products which range from screws, plates, shoes, stoves, chemicals, pharmaceuticals, leather, paints and forty more products which all together closed 2012 with sales abroad of $1.6 billion.
Between January and August Guatemala’s sales to Mexico increased by 16% compared to the same period last year.
The increase in sales to Mexico has generated enthusiasm in the Guatemalan export sector, which is seeking to strengthen trade ties and convert the neighboring country into it's main export destination.
"This is the purpose of the Guatemalan Association of Exporters (Agexport) which on the 7th and 8th of October will be aiming to strengthen ties in what has been called the first Macro Business Round for Central America and Southern Mexico.
Manufacturers of snacks and bakery products in the coming years will see growth in emerging markets such as the Asia – Pacific one.
This was revealed by the latest report "Bakery and Snacks - Market Assessment 2012", published by Packaging Machinery Manufacturers Institute, or PMMI.
A press release from Procomer states:
The study projected that there will be growth in sales of snacks in the United States between 2012 and 2015 of 4%, while globally it will be 7% per year, reaching $334 billion. It is also expected that overall sales of bakery products will grow by 4.5% annually, reaching $410 billion in 2015.
The manufacturing industry fair opened last night, with 180 companies exhibiting the best of their products.
From Diario de Centro América:
Manufexport 2012, the manufacturing industry trade show opened last night at Casa Santo Domingo, Antigua Guatemala, where about 115 buyers from around the world have gathered together along with 180 companies presenting the best of their products.
From 11 to 13 July the sixth edition of the manufacturing fair will be held in Antigua, Guatemala, which will also the host the Lac Flavors event by the IDB.
The Guatemalan Exporters Association, AGEXPORT, presents the MANUFEXPORT International Fair 2012, Retail Supply Expo & Conference, an event designed to promote greater competitiveness in the manufacturing sector in Central America and expand business opportunities internationally.
Manufacturing’s share of total exports is showing a clear upward trend.
Between last January and August it accounted for 70% of total sales.
In the year to September, sales in this sector grew by 26%.
Of the $7952.3 million traded between January and September this year, $5589.4 million were brought in by manufacturing, while traditional products generated $2362.9 million.
Foreign sales of wood products up to July increased by $718 million, equivalent to 19.8%.
Data from the Bank of Guatemala indicates that total exports for July amounted to $4,347 million.
The main markets for Guatemalan furniture are Central America, the United States and Europe.
The president of the Furniture Manufacturers Committee and Forest Products (COFAM) of the Guatemalan Association of Exporters (Agexport), Carlos Porras, told Siglo21.com.gt that "... the increase is due to two factors: one is that product demand has increased and the other is projections of a more dynamic economy. "
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