Profile of the Maquila Apparel Industry in Honduras
Released on = June 2, 2007, 1:27 am
Press Release Author = Bharat Book Bureau
Industry = Marketing
Press Release Summary = In 2002 Honduras exported 121.1 mn garments, making it the largest supplier of clothing in Central America. The country is also the third largest foreign supplier to the USA, after China and Mexico. In November 2003 the maquila sector comprised about 176 manufacturing
Press Release Body = Profile of the Maquila Apparel Industry in Honduras
In 2002 Honduras exported 121.1 mn garments, making it the largest supplier of clothing in Central America. The country is also the third largest foreign supplier to the USA, after China and Mexico. In November 2003 the maquila sector comprised about 176 manufacturing companies, most of which are members of Asociaciůn HondureŮa de Maquiladores (AHM). The sector began to boom in the late 1980s following implementation of the US Caribbean Basin Initiative (CBI) and passage of the Honduran Export Processing Zone Law, which provides incentives to national and foreign investors. One important recent development has been a significant increase in added value. This reflects the gradual transformation of Honduran companies from "807" manufacture-involving the assembly of US components-to "full package" operations, where the manufacturer receives detailed specifications from the buyer and is then responsible for acquiring the inputs and coordinating all parts of the production process. Honduras is well equipped with suppliers of apparel components and accessories, and fabric production is growing rapidly. The transformation into full package production is important to the survival of Honduran firms after December 31, 2004, when quotas restricting global textile and apparel trade are due to be eliminated. From 2005 the quota-free access enjoyed by Honduran garment manufacturers in the US market-upon which they depend for 90% of their output-will cease to be a competitive advantage. Honduran manufacturers should, however, gain from the Central America Free Trade Agreement (CAFTA) which will enable them to use Mexican materials without losing preferential access to the US market.
For more information, Please visit : http://www.bharatbook.com/detail.asp?id