GUATEMALA APPAREL AND TEXTILE INDUSTRY July 2014
INDUSTRY IN GUATEMALA Guatemala is the largest country of the Central American region, both in terms of production (GDP) that amounts to US$55 thousand million, and in terms of a population of 15.6 million inhabitants. It is also the most diversified economy. The apparel and textile Industry represents 4% of the country s production (GDP) and 19% of industrial production (industrial GDP). The apparel and textile sector includes 150 apparel manufactures, 39 textile mills, 250 services and trimming companies, directly in the industry The industry generates more than 90,000 direct and indirect jobs, of which 46% are held by women.
INDUSTRY ADVANTAGES This industry believes in performing responsibly and for that reason it abides by national and international laws. The apparel and textile industry in Guatemala has evolved over the years to meet customer needs in response time, quality, supply chain integration and technology The evolution of this industry has strengthened the value chain of our goods, leading to export higher quality goods that bring greater benefits to the country.
COUNTRY ADVANTAGES Closeness to the United States market Production volume flexibility Skilled labor High value added goods Technology transfer and foreign investor know-how Superior regional road infrastructure The country is positioned as the Regional Business Center Industry moving towards full package and fast fashion Existence of related sectors and services Central American market integration
In order to compete internationally, factories have included more complex production stages which equal higher added value Stage 1 Sew Stage 2 Cut and Sew Stage 3 Cut, Sew and trimmings Stage 4 Full package
Guatemala s Apparel and Textile Industry Printing Thread Embroidery Fabric 39 textile mills Washing Yarns 150 APPAREL MANUFACTURERS Boxes Labels 250 accessories and trimmings Adhesive tape, twill tape Bags Fuel 18. Sourcing Agents. Security Others Real Estate SMSC SUBCONTRACTING COMPANIES Customs Other services
EXPORTS OF GUATEMALA 2012-2013 1,600,000.0 Millions of US 1,400,000.0 1,200,000.0 1,000,000.0 800,000.0 600,000.0 400,000.0 200,000.0 0.0 Apparel & Sugar Coffee Banana Metals Oil and fats Bevarages Dryed Plastics Petroleum Textile fruits Year 2012 1,414,551.2 803,015.0 958,113.3 499,847.3 612,930.5 360,978.3 321,511.2 204,886.6 299,242.9 291,675.6 Year 2013 1,512,048.3 941,901.9 714,522.7 623,435.2 482,676.1 361,835.5 338,005.8 303,426.6 290,397.7 277,345.4
Market Shares 45.00 40.00 35.00 30.00 25.00 20.00 15.00 10.00 5.00-2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 MEXICO 14.20 12.50 10.50 9.66 7.86 6.55 5.19 4.56 4.14 3.85 3.96 3.79 3.66 CHINA 6.06 9.07 12.10 15.05 26.30 28.90 34.43 34.32 40.45 41.98 40.81 41.73 41.75 HONDURAS 6.34 6.32 6.11 5.63 5.70 5.04 5.24 5.87 4.72 5.14 4.96 4.72 4.32 EL SALVADOR 4.49 4.50 4.54 3.98 4.00 3.20 3.47 3.68 3.03 3.31 3.28 3.33 3.21 GUATEMALA 2.41 2.41 2.36 2.53 2.18 1.89 1.61 1.50 1.36 1.26 1.39 1.26 1.30 COSTA RICA 2.17 2.10 1.76 1.53 1.32 1.28 1.14 0.80 0.48 0.35 0.28 0.27 0.17 NICARAGUA 0.59 0.70 0.80 0.89 0.92 1.12 1.22 1.46 1.44 1.46 1.72 1.73 1.77 VIETNAM 1.83 3.92 3.88 3.59 4.20 5.46 6.73 7.56 7.72 8.37 9.06 9.78 HAITI 1.02 1.10 1.14 1.23
Destiny of the Guatemalan Apparel and Textile exports United States 79% Central America 14% Mexico 3% Other countries 3% Canada 1%
SME Value by country US$/SME 2013-2012 (Year ending) Country World average price Average Price SME 2013 Average Price SME 2012 Change 3.21 3.31 (0.1) Guatemala 4.14 4.12 0.02 Nicaragua 3.23 3.49 (0.26) Dominican Republic 2.81 2.96 (0.15) Honduras 2.28 2.3 (0.02) El Salvador 2.33 2.29 0.04 Costa Rica 2.51 2.54 (0.03) China 2.89 3.02 (0.13)
Top ten products of in Guatemala Category 338/339 638/639 347/348 Description Knit tops for women, men and children (cotton) Knit tops for women, men and children (synthetics) Trousers for men, women and children (cotton) Retailers, brands producing in Guatemala Century Place, Old Navy, Kohl s, North Face, Walmart, Carter s, Ralph Lauren, Oshkosh B gosh, American Eagle, New Creation, Avon, Guess, Alpha Source, The Pine Tree, Hobby Lobby, Oakley, Gap, JC Penny, Target, Providence Inc. Teamwork Apparel, Nike, Gear for Sports, Eurotard, Briara Trading, Joro Fashions, Apparel Avenue, Koam Knittech, American Apparel, Sweet Pea, Avon, The Timming Inc, Rhapsody, Maya Wrap, Land N & Sea, Williamson Dikies, Reebok, NFL, Adidas Walmart, Abercrombie and Fitch, Advantage apparel, Urban Stich, JC Penny, Destination Maternity, Dickies
Top ten products produced in Guatemala Category 239 Babywear Description Retailers, brands producing in Guatemala Oshkosh B Gosh, Carter s, Walmart, JC Penny, Gap, Kohl s, Target. 351/651 Cotton or synthetics pijamas or sleepwear 335 Jackets for women and girls Hanes, Avon, Walmart. Walmart, Fieldstone, Fishman & Tobin, American Apparel. 352 Underwear Hanes, Walmart, Avon 342/642 Skirts Lol Imports, Land N Sea, Boas Trading, American Apparel, Rhapsody Clothing, Joro Fashion 345 Cardigans Walmart, JC Penny, Macy s, Kohl s.
THANK YOU! Contact: Lucía de Sander Marketing & Promotion Coordinator Guatemala Apparel & Textile Association VESTEX 502 2410 8323 asander@apparel.com.gt