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 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.
With a $41 million investment, a Nike sportswear manufacturing plant will be built in San Pedro Sula.
Businessmen from Grupo Kattán and Corporación Tegra Global, informed that the new industrial site will have an area of 63 thousand square meters and will be located in the free zone of Inmobiliaria Hondurena del Valle S.A. (Inhdelva).
The American Aalfs Uno, which operated in the municipality of Sébaco, in Matagalpa, closed its operations in the country due to a reduction in the number of contracts.
The closure of the company was made official by directors of the Nicaraguan Association of Textiles and Apparel Industry (Anitec), who say it is the first company in the U.S. capital sector to close in the country.
During the first two months of the year, exports of the Guatemalan textile sector registered a 4% year-on-year increase, which is explained by demand from U.S. companies.
According to the most recent figures from the Bank of Guatemala, between the first two months of 2018 and the same period in 2019, overall exports fell from $1.808 million to $1.751 million.
Exports from the Costa Rican textile sector increased from $126 million in 2017 to $136 million last year, a behavior explained by sales of yarns and vinyl.
According to data from the Foreign Trade Promoter (Procomer) of textile and apparel exports, the year-on-year increase of 8% recorded in 2018 represents a slight recovery, since between 2014 and 2017 a downward trend was reported.
Businessmen consider that 2018 will be a year with record sales for the country, as they projected exports of $1.724 million, a figure that would exceed 12% of what was reported in 2017.
Representatives of the Apparel and Textile Industry Association (Vestex) reported that they have recently reviewed the figures, and they estimate that this year the sector will have double-digit growth compared to 2017.
The General Directorate of Public Contracting is putting out to tender a supply of embroideries and uniforms for State entities for the period 2018 to 2020.
Panama Government Purchase 2018-1-27-0-99-LM-001971:
29% of the companies that are dedicated to the design and confection of clothes are less than five years old, 18% between five and 20 years, 24% are more than twenty years old.
A report by the Ministry of Industry, Commerce and SMEs analyzes the characteristics of the clothing design and clothing industry in the Dominican Republic, and lists the opportunities in the sector, among which are the frequency of clothing purchases made by Dominican consumers, the obligatory nature of the use of certain garments in institutions due to workplace regulations, the need for school uniforms, the existence of government procurement programs and the influx of tourists, who are potential customers of typical Dominican products, clothing and accessories.
The South American country has extended the tariff of 35% and 40% on imports of footwear and textiles, respectively, for two more years, further complicating the outlook for companies in the Colon Free Zone.
Up until November 2019, the Colombian government will continue to apply the 35% tariff for footwear and 40% for textiles that enter the country at a value equal to or lower than a predetermined threshold.
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