April 7, 2021
REASONS TO INVEST IN MANUFACTURING
- In 2020, the GDP of the construction sector reached a value of USD 13,363 million, achieving fourth place in Latin America surpassed by Mexico, Brazil and Chile. (DANE and Fitch Connect).
- Competitive cost in salaries and labor force with skills for shipyard industry allows reparation for médium sizes vessels. Thanks to the FTA with the US, US ships can be repaired in the country (Jones Act).
- In 2020, the total vehicle eet in Colombia reached 6.4 million and a total of 188,665 vehicles were sold. An average growth rate in vehicle sales of 4% is expected between 2021 and 2025. (ANDEMOS and Fitch Connect)
- New housing projects are the middle class’ main access to the ‑nancial market as well as opportunities for growth. They also promote investment for household appliance manufacturers. The household appliance and consumer electronic markets are expected to grow 2% and 3% respectively between 2019 and 2023. (Euromonitor)
- According to FDI Benchmark, Colombia´s construction material industry´s labor costs are more competitive than those observed in Peru, Mexico, Costa Rica and Brazil. Labor costs in Colombia for this industry are approximately 5 times lower than those of the United States.
- Due to the increase of the aircraft eet in Latin America, airlines will need new MRO facilities located strategically in their routs for reducing maintenance costs.
- With 9.4 million of motorbikes in circulation at the end of 2020, Colombia has the second largest motorbike eet in the region , following Brazil (29 million), and above countries like Mexico (5.4 million) and Guatemala (1.6 million). (Fitch Connect)
- The low motorization rate represents an investment opportunity for vehicle assemblers. In 2020, is estimated a total of 111 vehicles per 1,000 inhabitants in Colombia, while the Latin American average is 189 vehicles per 1,000 inhabitants. (Fitch Connect)
- The manufacturing sector is comprised by a business network of more tan 67 thousand companies to meet the local and external demand.
- Electric and hybrid vehicles play an important role in the Colombian vehicle market. In 2020, sales of this type of vehicles reached 6,011 units which represent a growth of 92% over the previous year. Electric vehicles can be imported with zero tariff and are free to circulate without restrictions. (ANDEMOS)