Transnational Clothing Factories Return to Central America


News from Panama / Wednesday, January 4th, 2012

I was just buying another couple of pair of slacks that I like that are made by a US firm when I read the label, Made in Mexico.  As I have been dropping pants sizes for the last year (yes loosing weight thank you), I have noticed that the label used to read made in China or Vietnam.  Now I understand why it is Mexico this year.  This in from CentralAmericaData.com

There are positive expectations for the maquila and textile sectors in Central America regarding the return of companies who had migrated to China because of the lower labor costs.

With the disappearance of this advantage, Central America is once again among the best options for multinationals, having as an advantages its proximity to the U.S., which reduces transportation costs and delivery times.

An article in Siglo21.com.gt reports that “The domestic textile industry will be the fabric supplier for the Adidas brand after the company announced the installation of a factory in El Salvador. According to the president of the Commission for Clothing and Textiles (Vestex) of the Guatemalan Association of Exporters (Agexport), Carlos Arias, the return of several companies to Central America is creating positive expectations for the sector, as it will mean an increase in the distribution of fabrics in neighboring countries. Arias said that the Adidas investment is important for the region, as Guatemala produces textiles that are used for sportswear that is made in El Salvador.”