If quarantine and mobility restriction measures are extended by two months, annualized demand for carton packaging in the region is forecast to decline by 9% in 2020, and if extended by three months, the decline could be as much as 13%.
The "Information System for the Impact Analysis of Covid-19 on Business", prepared 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, considering several scenarios for the coming months.
During the first three months of the year, the production volume index of manufacturing industries registered a decrease of 2.7% compared to the same period in 2017.
The Comptroller General of the Republic reported that "... The behavior of the manufacturing industries observed through its integrated global indexes of volume, prices and value showed for the period January to March 2018, compared to the same period in the previous year, a decrease in production volumes in the order of 2.7%, and growth in their prices and value of 3.1% and 0.4%, respectively."
The bill approved by the Cabinet envisages an increase of 25% to 40% in tax credits for investment in manufacturing and agribusiness.
From a statement issued by the Presidency of Panama:
In order to expedite the process and create a program for industrial competitiveness to promote the sector's growth, generating investments and new employment positions for the economy, the Cabinet approved a bill that modifies and adds articles to Law 76 of 2009, dictating measures for the promotion and development of industry.
In 2015 Panamanian industry fell by 2% in production volume and 1% in value, while product prices rose by 1.1% in the same period.
From a statement issued by the National Institute of Statistics and Census in Panama:
The behavior of manufacturing observed through its global integrated volume indices, prices and value, saw in the period January to December 2015, compared to the same period last year, declines in volume and value by the order of 2% and 0.9%, respectively, and price growth of 1.1%.
The union of industrialists projects that the economy will grow by 6% this year and has raised concern over the fall in manufacturing activity.
From a statement issued by the Union of Industrialists in Panama:
Panama will continue to lead economic growth in Latin America and it is estimated that it could close 2015 at 5.8%; while for 2016 the amount projected is 6%.
The industry says that the absence of an industrial policy is one of the reasons that 6 out of 10 subsectors in the industry decreased production in 2014 compared to 2013.
A lack of an industrial policy is added to "... The uncontrolled import of products and not having a concrete strategy so that domestic and foreign companies can made decisions on producing in the country." These three factors are what have led to a decline in manufacturing output in the last ten years, according to entrepreneurs.
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.
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.
In Panama in the manufacturing sector, 40% of employers said they will increase their payrolls in the next quarter.
Panama is the second country in Latin America and the fourth largest globally with the greatest employment expectations for the third quarter of 2013, surpassed by Taiwan, Brazil and Turkey.
This was revealed by the Manpower Survey Employment Outlook for the third quarter 2013, which was carried out in Panama among 620 employers and about 66,000 worldwide. As for the manufacturing sector, in terms of recruitment Panama recorded 40% of employment expectations, a record figure since 2010.
Expectations are for an increase in domestic consumption driven by economic growth which will boost the sector to grow by more than 5% during 2013.
"According to the Comptroller General of the Republic, the behavior of the manufacturing industry, observed through its integrated indices of volume, price and value, showed that for January-December 2012, compared to the same period last year, there were increases in the order of 4.7%, 6.9% and 11.9%, respectively. Foods and beverages, and the manufacture of building materials were the most dynamic and at the same time rose the most in price and value," noted an article in Capital.com.pa.
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.
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