Top Industries Manufacturing in Colombia
Colombia: A Growing Manufacturing Hub
Colombia: A Growing Manufacturing Hub
Colombia is among the biggest economies in Latin America and is an upper middle-income economy. Colombia is a country with a growing Gross Domestic Product and increasingly attractive policies for entrepreneurs. Thanks to its privileged geographical position, the variety of its climates and products, as well as the development of a legal, stable, and flexible policy, it is an ideal platform for global trade.
The country’s large coastline on both the Atlantic and the Pacific oceans facilitates trade through the sea and the development of different port areas. Moreover, Colombia is directly connected to five countries in the region, making it a perfect place for bilateral trade development.
Colombia was the 5th largest economy in Latin America in 1990 with a GDP of $1,500 before rising to become the 4th largest in 2015 and the 31st largest in the world. By the year 2015, the GDP per capita had risen to $14,000 and the GDP was $700 billion. The poverty levels had also dropped from highs of 65% in 1990 to 24% by 2015. Industries such as electronics, shipbuilding, tourism, mining, construction, and automobile grew rapidly between the 2000s and 2010s.
Colombia is the 2nd biggest producer of domestically made appliances and electronics outside Mexico. The nation has the fastest growing economy in the western world. The government has in recent years shown a keen interest in exporting the nation’s pop culture through video games, movies, fashion, music, TV shows, and cosmetics to diversify the economy and improve the country’s image on the world stage.
Manufacturing Hub of South America
Petroleum accounts for about 45% of the nation's exports while manufacturing accounts for about 12% of the country's exports. The information technology sector is one of the fastest growing in the world, with developed IT infrastructure such as the longest fiber-optic network in South America. In the last decade, the country experienced a considerable economic boom.
Colombia has been producing domestic appliances since the 1930s, but it was not until the 1990s that corporations in the country began exporting products to neighboring countries. Colombia is also a hub for foreign appliance manufacturing, with companies such as GE, LG, and Whirlpool showing interest in setting up plants in the country. It is currently the third-largest producer of appliances after Mexico and Brazil. The country is also a major producer of electronics in South America and provides the second-largest market for high-tech electronics in the region.
Top Manufacturing Industries in Colombia
The Colombian manufacturing sector has advantages for investors to seize opportunities. Among these, Colombia stands out for its access to raw materials at competitive costs and qualified human talent at costs lower than those of the region. Furthermore, Colombia is characterized as a manufacturing export platform for the region.
1. Textile and Fashion
Colombia has become the number one flat weave fabric exporter in South America for products such as bras, jeans, and shapewear. The Colombian fashion industry comprises 9.4% of the total industrial GDP and employs around 600,000 people. In 2019, clothing and footwear sales in the country amounted to USD 8 billion, and more than 1,200 Colombian companies in this industry exported their garments to over 100 countries.
2. Cosmetics & Personal Care
Colombia has a long history of producing and exporting cosmetics and personal care products in the region. Colombia offers a consolidated market with high levels of consumption and is considered a regional distribution platform, making it an ideal foreign investment destination for the cosmetics and personal care sector.
3. Petrochemicals
The availability and competitive prices of the petrochemical industry's raw materials, as well as a qualified workforce, make Colombia an excellent destination to produce and distribute products derived from the petrochemical sector to the rest of the region.
4. Packaging
Colombia has a mature container and packaging industry, representing USD 840 million in annual sales. As it grows, it boosts other segments such as cosmetics, personal care products, and processed foods.
5. Automotive
Colombia has a vehicle fleet of 15.3 million units and a business network of assembly plants as well as auto parts and accessory manufacturers, which are capable of serving the local market and exporting to regional markets.
Conclusion
The gradual reopening of the market begins to boost the labor force and employment opportunities. Colombians are the key to favorable growth for all sectors, regions, and industries. Their skills and attitude towards work, as well as their warmth in building relationships, are among the biggest reasons to invest in Colombia.
Investors have more reasons to invest in Colombia, as it demonstrates why it is one of the top three best countries to do business with in Latin America. Its economic sectors are prepared to show the best of Colombia’s industrial production.
The most welcoming place to do business awaits you with open doors. Discover why Colombia is a key investment destination by visiting our website here.
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