As I always mention in my speeches, Colombia has ascending trend at this moment. According to Mr. De Coster's article in just-style.com he is also agree with me...
In contrast to 2009, when
Colombia's textile and apparel exports tumbled by 40% due to a
political row with its neighbour and main customer Venezuela, as well as
falling international demand due to the global economic crisis, the
industry is now feeling bullish.
Indeed, 2011 was a relatively good year, especially in the domestic market where textile and clothing consumption increased by 14.6%. In exports, the situation was mixed, with apparel shipments down by 0.9% but textile exports rising by 23.4% in the 11 months from January to November.
Demand is expected grow in 2012, both from overseas and local markets following the signing of a Free Trade Agreement (FTA) between Colombia and the US in October 2011.
Although implementation of the trade pact is still waiting on certain conditions, including steps by Colombia to enforce local labour laws, once it comes into force it will enable exporters to compete on equal terms in international markets with their counterparts in Chile, Mexico and Peru, which already have FTAs.
Several large US and European apparel brands are reportedly adapting their sourcing strategies in favour of Colombia. Colombians also expect that clothing makers around the world, including those in Asia and Brazil, will want to do business in Colombia so they can send their products to the US without import tariffs.
According to Carlos Botero, president of Inexmoda, the organiser of the Colombiatex and Colombiamoda trade fairs, Colombian apparel makers are feverishly preparing for the expansion of their export businesses. This includes meeting US and international technical, social and environmental standards, as well as intellectual property rights.
Well connected
Last month's Colombiatex, the largest textile fair in Latin America, once again confirmed that Colombian textile and apparel exporters are remarkably well connected with the outside world.
The Medellín-based Export and Fashion Institute Inexmoda and the government organisation Proexport have a pivotal part to play in bringing foreign buyers, fashion specialists, sector observers and journalists to Colombia.
Opportunities for Colombian exporters have also been boosted by the government's efforts to secure free trade agreements which, as well as the US, have been signed with Canada, Mexico, Honduras, Chile, the countries of the Andean Community (without Venezuela, governed by unpredictable president Hugo Chavez), and the EU.
The country also has an arrangement with Japan and is in the process of preparing a FTA with Turkey and Korea.
Sector leaders doing wellEnka de Colombia, a major producer (120,000 tons a year) and exporter (38% of production) of polyester and polyamide, expects turnover to rise by 20% when its new PET-recycling plant opens at the end of 2013. The facility will convert 3m PET bottles a day into resins, fibres and filaments, and payback of the US$30m investment is expected to be achieved within one year.
Coats Cadena Andina, which produces more than 20 tons of thread per week at its factory in Colombia, expects growing demand from domestic apparel manufacturers as they expand production thanks to the new US trade pact. Coats, which controls 65% of the Colombian sewing thread market, is resisting competition from cheap Asian imports.
Textile major Fabricato Tejicondor, which makes knit, denim and stretch fabrics, increased its turnover by more than 10% in 2011. The company is currently investing US$30m in new dyeing and finishing installations, which are expected to be operational in April 2012.
Coltejer, Colombia's oldest textile company which was established in 1907, was saved from financial disaster in July 2008 by Mexican denim manufacturer Kaltex, which acquired 65% of its shares. The company more than doubled its exports in the first half of 2011.
And Artextil, which calls itself the Colombian market leader in printing, dyeing and finishing, boasts recent investments in technology of US$5.5m and with an additional spend of US$1.5m expected in 2012.
Hosting the IAF Convention 2014
Colombia is also making its mark on the world stage after being designated the host country for the International Apparel Federation's (IAF) World Apparel Convention in 2014. The annual event attracts over 200 representatives from the textile and clothing industry, and its move to Colombia is seen as an accolade for the country.
Author: Jozef De Coster
Original: http://www.just-style.com/analysis/the-future-looks-bright-for-colombian-exporters_id113493.aspx
Indeed, 2011 was a relatively good year, especially in the domestic market where textile and clothing consumption increased by 14.6%. In exports, the situation was mixed, with apparel shipments down by 0.9% but textile exports rising by 23.4% in the 11 months from January to November.
Demand is expected grow in 2012, both from overseas and local markets following the signing of a Free Trade Agreement (FTA) between Colombia and the US in October 2011.
Although implementation of the trade pact is still waiting on certain conditions, including steps by Colombia to enforce local labour laws, once it comes into force it will enable exporters to compete on equal terms in international markets with their counterparts in Chile, Mexico and Peru, which already have FTAs.
Several large US and European apparel brands are reportedly adapting their sourcing strategies in favour of Colombia. Colombians also expect that clothing makers around the world, including those in Asia and Brazil, will want to do business in Colombia so they can send their products to the US without import tariffs.
According to Carlos Botero, president of Inexmoda, the organiser of the Colombiatex and Colombiamoda trade fairs, Colombian apparel makers are feverishly preparing for the expansion of their export businesses. This includes meeting US and international technical, social and environmental standards, as well as intellectual property rights.
Well connected
Last month's Colombiatex, the largest textile fair in Latin America, once again confirmed that Colombian textile and apparel exporters are remarkably well connected with the outside world.
The Medellín-based Export and Fashion Institute Inexmoda and the government organisation Proexport have a pivotal part to play in bringing foreign buyers, fashion specialists, sector observers and journalists to Colombia.
Opportunities for Colombian exporters have also been boosted by the government's efforts to secure free trade agreements which, as well as the US, have been signed with Canada, Mexico, Honduras, Chile, the countries of the Andean Community (without Venezuela, governed by unpredictable president Hugo Chavez), and the EU.
The country also has an arrangement with Japan and is in the process of preparing a FTA with Turkey and Korea.
Sector leaders doing wellEnka de Colombia, a major producer (120,000 tons a year) and exporter (38% of production) of polyester and polyamide, expects turnover to rise by 20% when its new PET-recycling plant opens at the end of 2013. The facility will convert 3m PET bottles a day into resins, fibres and filaments, and payback of the US$30m investment is expected to be achieved within one year.
Coats Cadena Andina, which produces more than 20 tons of thread per week at its factory in Colombia, expects growing demand from domestic apparel manufacturers as they expand production thanks to the new US trade pact. Coats, which controls 65% of the Colombian sewing thread market, is resisting competition from cheap Asian imports.
Textile major Fabricato Tejicondor, which makes knit, denim and stretch fabrics, increased its turnover by more than 10% in 2011. The company is currently investing US$30m in new dyeing and finishing installations, which are expected to be operational in April 2012.
Coltejer, Colombia's oldest textile company which was established in 1907, was saved from financial disaster in July 2008 by Mexican denim manufacturer Kaltex, which acquired 65% of its shares. The company more than doubled its exports in the first half of 2011.
And Artextil, which calls itself the Colombian market leader in printing, dyeing and finishing, boasts recent investments in technology of US$5.5m and with an additional spend of US$1.5m expected in 2012.
Hosting the IAF Convention 2014
Colombia is also making its mark on the world stage after being designated the host country for the International Apparel Federation's (IAF) World Apparel Convention in 2014. The annual event attracts over 200 representatives from the textile and clothing industry, and its move to Colombia is seen as an accolade for the country.
Author: Jozef De Coster
Original: http://www.just-style.com/analysis/the-future-looks-bright-for-colombian-exporters_id113493.aspx