In recent years, the sector in Guatemala has lost nearly 30,000 jobs, because the high costs resulting from having one of the highest minimum wages in the region, makes it more profitable only to export raw materials, rather than making them in the country.
Vestex figures show that in recent years several jobs have been lost in the sector, given that between 2006 and 2018 the industry lost a considerable number of jobs, going from 82,109 to 53,636 places, equivalent to a 35% decrease.
The German company, Amoena, reported that it will close its operations in the country, arguing that its main textile suppliers moved their operations to Asia and need to get closer to that market.
The company is a producer of bras, bathing suits and other products for women who have suffered from breast cancer and underwent mastectomies.
The use of nanotechnology in production processes is one of the investments that companies in the textile industry will have to make to compete at a global level.
According to specialists in nanotechnology, an area focused on the design and manipulation of matter at the level of atoms or molecules for industrial purposes, in the production processes several advanced techniques exist that give industry the opportunity to innovate and access new markets.
During the first six months of the year, imports of yarns and textile supplies in Central America totaled $264 million, registering a 3% decrease over the same period in 2017.
Figures from the information system on the Central American Market for Yarns and Textiles materials, compiled by the Trade Intelligence Unit at CentralAmericaData: [GRAFICA caption="Click to interact with graphic"]
In the first quarter of the year, imports of yarns and textile supplies in Central America totaled $127 million, registering a 10% drop compared to the same period in 2017.
Figures from the Information System on the Textiles and Textile Supplies Market in Central America, compiled by the Business Intelligence Unit at CentralAmericaData: [GRAFICA caption = "Click to interact with graph"]
In 2016, the value of imported yarns and textile raw materials in the region amounted to $328 million, equivalent to 89 thousand tons, 6% more than the volume purchased in 2015.
Figures from the information system on the Central American Market for Yarns and Textiles materials, compiled by the Business Intelligence Unit at CentralAmericaData: [GRAFICA caption="Clic para interactuar con la gráfica"]
A report by the Business Intelligence Unit at CentralAmericaData.com notes that in 2015 Central American countries imported $318 million worth of yarns, filaments and textiles, led by El Salvador with $157 million.
El Salvador was the main importer of synthetic filaments, strips and materials similar to synthetic textiles last year, according to data on the Textiles and Raw Materials Market compiled by the Business Intelligence Unit at CentralAmericaData.com.
A meeting is being convened for the textile and clothing industry on March 16 in El Salvador, where the overall situation in the sector will be discussed.
From a statement issued by Proesa:
El Salvador is preparing for the third edition of the Forum of Textiles and Apparel (FOROTEX) 2016, a space where high-level international speakers present trends and strategies for competing in international markets.
Despite the challenges facing the Central American textile industry with the coming into force of the TPP and Asian competition, projections are that there will be growth of 8% in 2016.
The main reason is the decision of the US government to extend for ten years the tariff advantages enjoyed by Nicaraguan exports to the northern country, supporting them against the entry into force of the Trans-Pacific Economic Partnership Agreement (TPP).
Efforts are growing to minimize the impact of the possible signing of the Trans-Pacific Partnership Agreement, and a tariff reduction program with long deadlines for sensitive products has been proposed.
As negotiations proceed to sign the Trans-Pacific Partnership Agreement (TPP), the textile industry in El Salvador is stepping up its efforts to maintain the conditions of the CAFTA treaty and minimize the impact that the TPP will have on the sector in the long term. One of the main risks is that "... Vietnam could introduce products from China and then export them tariff-free to the United States, which would give them a huge competitive advantage. "
In order to improve their competitiveness in the manufacturer of uniforms and baseballs Rawlings Costa Rica will move its uniform line to El Salvador, laying off 200 workers.
The company which has operations in Turrialba announced that the main reason behind the transfer of operations is to do with competition.The manager Alejandro Cotter told Crhoy.com that "...
The Korean textile SAE-A Spinning SRL has started producing yarns and fabrics in the manufacturing plant built in the industrial area of Coris, in Cartago.
Although construction of the new textile plant, which required an investment of $35 million was announced in June 2014, it is just now starting operations.
The Costa Rican Coalition for Development Initiatives (CINDE), told Nacion.com that "...
Cartex Manufacturing, a subsidiary of Hanes Brands employing 1,250 people in the manufacture of boxer shorts, has announced the consolidation of its production in Vietnam.
The company announced that in order to "optimize" the flow of production, the operation will move to Vietnam, "... since the fabric suppliers are in China, which means a reduction in production costs."
The Korean company SAE-A-Spinning has indicated that the plant where cotton thread will be produced is already under construction in the province of Cartago.
From a press release by the Costa Rican Coalition for Development Initiatives (CINDE):
San José, Costa Rica June 17, 2014.
SAE-A SPINNING SRL, a subsidiary of SAE-A TRADING CO., LTD., and the Costa Rican Coalition for Development Initiatives (CINDE), today confirmed publicly that the company originating from South Korea, will open a new plant for manufacturing yarns in Cartago with an investment of over U.S. $50 million and which will generate 200 new direct jobs.
The implementation of lean manufacturing systems reduces from two hours to five minutes the time it takes to make a garment.
This system, introduced in the textile fair Apparel Sourcing Show 2014, in Guatemala, unifies in a set sequence the "value" steps of the manufacturing process, completely eliminating "waste" steps resulting in higher productivity and resource optimization so that the number of operators needed to make a garment is only nine instead of fifty.
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