3 reasons why Nicaragua is the right step for footwear manufacturing

June 19, 2014

With a longtime history of artisan footwear production, Nicaragua took a big step by switching to high-volume industrial manufacture and fine leather footwear export in 2010. And what it has accomplished has since then turned heads, considering just two years later the country was regarded as the “rising star” of global footwear production by Footwear Distributors and Retailers of America (FDRA).

But, why has Nicaragua received such recognition and why are big footwear companies starting to look into this country? Having footwear manufacturing operations in Nicaragua would mean:

1. Your manufacturing operations would be located in the heart of the Americas.
The proximity to both North and South America makes Nicaragua an ideal destination for export operations to all markets within the continent. On the other hand, the country’s access to the Pacific and Atlantic Oceans also facilitates exports towards Europe or Asia.

2. Your footwear manufactured in Nicaragua would have preferential access to 50+ countries.
To better integrate into the world, Nicaragua has actively engaged in multilateral, regional and bilateral negotiations. As a result, the country has gained preferential access to key markets such as the U.S., the European Union, Mexico, Dominican Republic, Panama, Chile, Taiwan and others. In total, Nicaragua has earned preferential access to a world market of over 1.5 billion people.

3. The remarkably competitive cost structure of manufacturing shoes in Nicaragua would save you lots of $$.
The study titled “Benchmarking the Competitiveness of Nicaragua’s Apparel Industry”, conducted by O’Rourke Group Partners, found Nicaragua to be the single most competitive option for sourcing numerous apparel products, not just in this hemisphere, but in some cases also compared to China, Vietnam and Bangladesh.

Nicaragua has proven to be a “rising star” after all, especially for the renowned British shoe brand Clarks, which is currently manufactured in the country. And who knows where this star will be in the near future. In the meantime, these three highly attractive benefits will continue to draw the attention of export-oriented manufacturing companies and even possibly transforming Nicaragua into the production center of the Americas.

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