New Holland, a company engaged in the manufacture of clothing and which has been operating in the country for 15 years under the free trade zone regime, announced that it will close operations in the last days of May.
The company's decision to leave Nicaragua is due to the fact that the country does not have the adequate technological machinery to compete with the garments it manufactures for the Under Amour, Nike and Adidas brands.
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.
When the health crisis began, the number of Internet searches associated with women's clothing dropped considerably in all Central American markets, but in recent months’ interest has rebounded.
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 different products, sectors and markets operating in the region.
During the last few months in Central American countries the volume of searches and conversations on the Internet related to uniforms began to decrease, and by early November the trend was still downward.
Through a system that monitors in real time the changes in the interests and preferences of consumers in Central American countries, developed by CentralAmericaData, it is possible to project short and long term demand trends for the different products, sectors and markets that operate in the region.
In the context of the crisis in all markets of the region, the interest in formal garments collapsed, but in recent months the amount of digital consumer interactions associated with this type of clothing has begun to rebound.
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 demandtrends for the different products, sectors and markets operating in the region.
After the impact caused by the covid-19 outbreak, Nicaraguan businessmen in the sector estimate that in the first seven months of the year the maquila industry have stopped exporting close to $300 million and have had to lay off some 6 thousand employees.
The drop in demand in the United States, which is one of the main destination markets for exports of clothing made in Nicaragua, explains part of the drop in income for companies operating in the country.
It is predicted that in the context of the crisis generated by covid-19, the demand for clothing in the local market will be affected mainly by a drop in sales of men's jeans.
The "Information System for the Impact Analysis of covid-19 on Business", prepared by the Trade Intelligence Unit of CentralAmericaData, measures the impact that the crisis will have on companies, depending on the country, sector or economic activity, during the coming months.
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.
From January to September last year, foreign purchases of clothing and accessories made by companies in Central America totaled $981 million, and 46% was imported from China and the United States.
Figures from the Trade Intelligence Unit at CentralAmericaData: [GRAFICA caption="Click to interact with graphics"]
Last year, imports of garments and clothing accessories made by companies in Central America totaled $1.505 million, 3% more than what was purchased in 2017.
Figures from the Trade Intelligence Unit of CentralAmericaData: [GRAFICA caption="Click to interact with graphic"]
Imports of footwear and clothing fell 8% in the first half of the year compared to the same period in 2017, and production in the country contracted by around 30%.
According to representatives of the guilds of the Nicaraguan Chamber of Leather Shoes (CNCC), and the Nicaraguan Chamber of Leather and Footwear (Camcunic), in the first six months the local production of clothing and footwear has decreased by about 30%.
Last year Central America imported $1.467 billion worth of clothing and clothing accessories, the highest value in the last six years, registering a 15% increase compared to 2016.
Figures from the information system on the Market for Apparel and Clothing Accessories in Central America, compiled by the Business Intelligence Unit at CentralAmericaData: [GRAFICA caption = "Click to interact with graph"]
Between January and September of 2017, Central American countries imported $977 million worth of clothing and accessories, 14% more than in the same period in 2016.
Figures from the information system on theApparel and Clothing 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 clothing and accessories totaled $1,279 million, 13% less than imports in 2015.
Figures from the information system on the Apparel and Clothing Market in Central America, compiled by the Business Intelligence Unit at CentralAmericaData: [GRAFICA caption = "Click to interact with the graph"]
If the United States withdraws from the Transpacific Agreement, there will be less risk of competition from Asian countries for the Central American textile industry.
If the US does eventually abandon the Trans-Pacific Partnership Agreement (TPP), as promised by President-elect Donald Trump, the Central American textile industry could benefit from the elimination of the possibility that the US, its main market, will buy textiles from Vietnam at lower prices.Since the start of negotiations for the TPP, the Central American textile industry has tried to negotiate bilaterally with the US in order to minimize the negative effects that the TPP could have on the industry in the region.
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