Because the price of fuels in Nicaragua has increased consecutively during the last 18 weeks, companies dedicated to provide cargo services announce that rates could increase between 5% and 10%.
During 2020 the price of hydrocarbons was considerably reduced, but currently in the international market the price of a barrel of oil exceeds $60, which is similar to the amount reported prior to the covid-19 pandemic.
Following the entry into force of the Sign Law, agencies engaged in providing printed advertising services estimate that the cost of billboards will increase by 30% due to the new tax payments to be made to the municipalities.
According to the Assembly, the purpose of the Law is to establish the legal framework to regulate the advertising and propaganda carried out by means of signs located in the municipalities of the country, based on urban, suburban and rural planning and development, as well as technological advances.
Following the reactivation of China's economy in mid-2020, the Asian giant has monopolized a good part of the raw materials demanded by industry, a situation that is pushing up costs and generating uncertainty among Central American businessmen.
Due to the pandemic generated by the covid-19 outbreak, production in China was considerably interrupted during the first semester of 2020. But, after it reactivated its economic activity, the Asian country began to hoard raw materials that are used in the plastic industry.
Discounts and offers, increase in the price level generally and the rise in operating costs due to new health and safety protocols are the main threats to the profitability of companies in this new commercial reality.
Given this context of economic and health crisis, which derives from the outbreak of covid-19 at the global level, Ariel Baños, a specialist in price management and founder of Fijaciondeprecios.com, explains what are the main threats that could affect the profitability levels of companies, and details some strategies that could be applied to mitigate the adverse effects.
To effectively apply data analysis tools on a large scale, the proper structuring of the information is essential, otherwise the cost that the company will have to incur to reverse the errors will be very high.
Data governance, which encompasses the set of processes, functions, policies, standards and measurements that ensure the effective and efficient use of information, becomes relevant to enterprises, which increasingly benefit from the use of machine learning tools and statistical analysis.
Because of factors such as business closures and lack of opportunities, it is estimated that criminal activity costs Honduras and El Salvador 16% of GDP, and in the case of Guatemala, its losses could amount to 7% of its production.
In Central America, the human costs of crime remain one of the highest in the world. El Salvador, Guatemala, and Honduras—referred to as the Northern Triangle— account for about four-and-a-half percent of homicides worldwide despite only having about one-half-percent of the world's population.
The Panama Chamber of Commerce requested the Panama Canal Authority to postpone the start of collection of the fee for the use of fresh water in the Canal, which would begin to be paid on February 15, 2020.
As a result of the tax reform implemented in February 2019, at the beginning of 2020 the prices of beverages increased, mainly soft drinks sold in plastic containers.
In February of last year, the Ortega regime approved the reform of the Tax Agreement Law, which consisted of increasing income tax from 1% to 2% for medium sized companies with higher incomes, and from 1% to 3% for large taxpayers.
Convincing the sales team that the increase in the price of the product is necessary, and that they are able to convey the message to customers correctly, is essential when it comes to increasing prices when production costs rise.
Ariel Banos, specialist in price management and founder of Fijaciondeprecios.com, explains five strategies to increase product prices successfully, maintaining profitability and ensuring the viability of the company in the face of rising costs.
In the country, the business sector expects an increase in operating costs in the coming months, as a result of the expected increase in the price of electricity in the short term.
Retention of raw materials by the authorities of Customs and charges to businessmen by the mayors, are some of the problems that are affecting industrial companies in Nicaragua, in addition to the crisis and the rise in taxes.
Directors of the Chamber of Industries of Nicaragua (Cadin) reported that companies in the packaging, beverage and dairy industries are the most affected by the withholding of inputs made by the General Directorate of Customs (DGA).
From 2020 onwards, the fuel used by ships worldwide should not exceed 0.5% sulphur concentration, forcing transporters to consume higher priced fuels, which could become even more expensive because of increased demand.
From January 1, 2020, the concentration of sulphur in the fuel consumed by maritime transport vessels must not exceed 0.5%, a limit that until now was at 3.5%.
The non-tax exemption of equipment that generates solar energy, together with the gaps in its regulation, are some of the factors that make investments more expensive in Nicaragua.
Since mid-July, the main companies transporting maritime cargo from the Port of Santa Tomas in Guatemala stopped operating the direct route to Europe, which will raise between 20% and 25% the costs of imports and exports.
After six decades of keeping the direct route to European ports in operation, the main shipping companies departing from Puerto Santo Tomás de Castilla in Izabal such as Maersk, Hamburg Sud, MSC, CMA-CGM, Hapas Lloyd and Sea Trade, decided not to re-operate the route concerned, leaving only one company with a multipurpose transport ship as an option to move cargo to Europe.
Changes in legislation restricting the use of disposable plastic containers and packaging force companies to look for other options, some of which could be up to five times more expensive.
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