Light Manufacturing

Light Manufacturing

The light manufacturing industry is one of the most dynamic sectors of the Nicaraguan economy. Since its establishment, the industry has grown significantly and has become a leader in job creation and exports.

Nicaragua has managed to become an ideal place to conduct manufacturing and assembly operations. Northwest Nicaragua is an excellent platform for exports, because of the advantages of its geographical location, attractive tax incentives, the quality of its workforce and a competitive cost structure for labor intensive industrial processes. These advantages are highlighted in the region because of its quick access to the market in Western United States through the Port of Corinto and its proximity to the Port of Cortes, which is the point of departure for eastern North America and Europe. These advantages have turned Northwest Nicaragua in the center for the manufacturing of automotive components.

It is estimated that the workforce in the Occidente is 316,677 people of whom 70% are under 30 years old, providing a young and dynamic workforce, with a fast learning curve. Moreover, the region has 8 universities, with more than 20,000 enrolled students.

Occidente has one Private Industrial Park located 30 minutes from the Port of Corinto and 10 hours from Puerto Cortes.

Textiles and Apparel

Nicaragua's Textile & Apparel industry is indeed an important development engine for the national economy, as it employed more than 50,000 people by the end of 2009 and, during the same year, exported 308.3 million square meter equivalents (SMEs), valued at US$893.3 million. Notwithstanding the negative repercussions of the international financial crisis on American apparel imports, Nicaragua's performance was by far the most resilient in the region.

During the past five years, Nicaragua's Textile and Apparel industry has experienced:

• 4.5 percent growth in exports’ value
• 8.6 percent growth in exports by volume

Additionally, Nicaragua has become an important player in the global Textile and Apparel industry. By the end of 2009, Nicaragua became the 14th largest apparel exporter to the United States.

Investors choose Northwest Nicaragua because of the good working habits and productivity of its people, its proximity to Puerto Corinto and Puerto Cortés, attractive tax incentives and tariff benefits under the Dominican Republic-Central America Free Trade Agreement (DR-CAFTA). The region is an excellent platform to develop and export products that require both quality and timely shipment. Northwest Nicaragua’s strategic location allows production to reach the large markets of North America and Europe faster than operations set in Asia.

Nicaragua has the most competitive labor cost structure in the region, as the following graph shows: