On March 1st a new minimum wage structure came into force, with an adjustment of 9.8% for SMEs, 11.48% for the agricultural sector and 10.98% for other sectors.
The salary adjustment is effective from the first of March and will be implemented in two semiannual tracts. In the case of the industrial sector, subject to the taxation regime, the wage setting corresponds to 8% and will be applied in a single tranche in force until December 30 this year.
The company founded on Costa Rican capital, Jack's Foods, has announced that within five years it will transfer 50% of its production activities to Nicaragua, El Salvador and the United States.
From a statement issued by Alimentos Jack's:
Alimentos Jack's, a company founded on 100% Costa Rican capital, has decided to continue its expansion outside of Costa Rica and is planning to transfer 50% of its operations within five years, to the United States, El Salvador and Nicaragua.
In the first nine months of the year $15.9 million worth of footwear was exported, which is 26% more than in 2013.
The sector's competitiveness in terms of labor costs, incentives to industry, preferential access to key markets and strategic location of the country, are the main factors attributed to the growth in exports of Nicaraguan footwear.
The Investment Promotion Agency of Nicaragua, told Elnuevodiario.com.ni that "...
As part of the controls to combat smuggling, between May and July 29 companies were suspended from the list of importers, which represents 60% of the total volume of pairs of shoes entering the country.
In order to detect and prevent irregularities in the import of footwear, the General Administration of Federal Tax Audit Tax Administration Service of Mexico carried out 31 audits "...
The sharp rise in the world price, generated by increased demand and shortage of tanning skins is turning traditional shoe leather into a luxury product.
The rise in price due to scarcity and increased demand has started to create the perception that leather is a commodity which is too expensive to use for mass shoe production and is more geared towards a higher segment.
The country wants to take advantage of the tariff preferences it has to export shoes to the United States and the European Union so as to attract foreign investment to the sector and turn it into an export platform.
From a statement by Pro Nicaragua:
All footwear manufactured in Nicaragua has duty free access to the United States, the European Union and other important markets.
The growing Mexican automotive industry is generating opportunities for the sale of chassis and autoparts from Nicaragua, as in the first quarter of 2014 revenue was generated of $152 million, which is 22% more than in the same period in 2013.
In the first quarter of 2014 sales of chassis to Mexico amounted to $152 million, 22.6% more than in the same period last year, according to Data from the Central Bank of Nicaragua.
In order guarantee the supply of raw material for the manufacture of footwear and other leather items, 10 thousand semi processed skins will be distributed among SME manufacturers.
Apart from the purchase of raw materials, the amount will go to "... improvements in infrastructure and implementing production techniques" for the shoe manufacturing sector.
North American entrepreneurs in the footwear sector have emphasized the advantages of the Nicaraguan industry as providers of high heel shoes for ladies.
Surpassing China, Vietnam, Cambodia, Indonesia and Bangladesh and ranking below average in cost of quality leather shoes ($ 3.30 per pair), manufacturing soles ($ 0.43) and the development of a pair women shoes ($ 8.17), Nicaragua has become highly attractive as a destination for industry manufacturers and a candidate for a strong manufacturer and exporter of women's shoes.
The lack of its main raw material is a recurring problem in the Nicaraguan footwear industry.
The National Chamber of Leather, Footwear and Allied Businesses in Nicaragua has requested a temporary ban on the export of leather, noting that most of the production of cattle hides in the country is being sold abroad.
Whether because of problems arising in imports of the main raw material for the manufacture of footwear, or because of local production of leather being exported abroad, this seems to be a never ending issue that periodically causes severe losses to the industry, due to the fact that it makes it impossible to keep production plants in operation.
More than half of total exports from Nicaragua in 2013 came from a group of only 13 companies.
An analysis of the issue by Ricardo Guerrero in elnuevodiario.com.ni highlights that foreign sales in 2013 from these 13 companies totaled "$1.3055 billion, more than half of the $2.566 billion which made up total exports in that year. They are the largest and most competitive exporters in the country, and behind each of them - 13 in total - there are thousands of beneficiaries, thereby generating a positive domino effect on production and the national economy. The numbers means that these companies manage to stand out among the more than 6,000 companies that generate foreign currency for the country. "
Economic activity showed an increase of 4.6% between January 2013 and January 2014, driven, among other things, by a boom in housebuilding.
Nicaragua's economy has been keeping pace with growth as reflected in the latest report by the Central Bank, in which the results of the economic activity in the last twelve months up to January 2014 have been collected.
The trade show MANUFEXPORT to be held on October 1st - 2nd will bring together companies in the region and international buyers.
From a statement by the Guatemalan Exporters Association:
"AGEXPORT and the Chamber of Industry have jointly organized MANUFEXPORT 2014, Special Edition where 100 buyers from the U.S., Central America, Mexico, the Caribbean and Colombia will discover the range of food and beverages (perishable and non-perishable) plastics, personal care and cosmetics, cleaning products, paper converters and processors, and for the first time the categories of home furnishings, clothing, accessories and footwear for sale at stands."
Nicaragua pork producers obtained permissions to perform the first export of meat to El Salvador.
After several years of trying to enter the international market, the Nicaraguan slaughterhouse Cacique has signed its first sale contract in El Salvador.
The contract initially involves sending a monthly container, but in the short-term this could double and be increase further still if other slaughterhouses are interested in selling their products in El Salvador.
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.
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