The following research report contains market research, analysis, statistics and business intelligence relating to research on The Textile Sector In Colombia.

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ABSTRACT
The Colombian textile industry, which is sophisticated and mature, is dominated by about five integrated mills that command a majority share of the total textile market. There is a sizeable, growing market for cotton yarns and fibers, primarily due to emphasis on increasing exports of quality textiles and apparel. Domestic cotton fiber production is insufficient to fulfill demand, both in quality and quantity. Declining cotton output has resulted in an increased dependence upon fiber imports, which now satisfy fully sixty percent of domestic cotton requirements. The opening of the Colombian market to imports has forced Colombian textile and apparel companies to switch from offering a wide variety of products to fewer items on a larger scale.

The United States is a major supplier of textiles and other made-up textile articles to Colombia, with a 24 percent share (US$165.2 million) of total Colombian imports of $678.7 million in 2000. The U.S. also purchased about 23 percent (US$62.5 million) of total Colombian exports of $277.3 million of textiles and other made-up textile articles. In 2000, major U.S. exports to Colombia were cotton yarns and fabrics; man-made filament fabrics; man-made staple fabrics; wadding, felt and non-wovens; twine, rope and articles thereof; special woven fabrics; tufted textile fabrics; lace; knit and crocheted fabrics; impregnated textile fabrics; and textile floor coverings.

The opening of the Colombian economy has facilitated the importation of capital goods, intermediate goods, raw materials/inputs, and consumer goods. However, textile industrialists have viewed the opening as tough competition for the textile and apparel sectors.

Since the early 1900s, Medellin has been the heart of Colombia's textile and knit products manufacturing sector, accounting for nearly fifty percent of Colombia's textiles, fabrics, fibers, and apparel production. Bogota accounts for about 35 percent of production; and the remaining 15 percent is spread among other cities. Seventy percent of Colombia's cotton product manufacturing plants are located in Medellin. The entire Colombian textile/apparel industry is improving infrastructure, quality control, and customer service.
The Colombian economy is still experiencing the effects of the 1997-1999 recession, despite slight signs and public announcements of economic recovery and reduction of unemployment rates. GDP rose 2.8 percent in 2000, compared with a fall of 4.3 percent the previous year. Colombia's economic cycle seems to be at the beginning of an upturn. Consumer price inflation was 9.2 percent in 1999, 8.8 percent in 2000, and has continued its fall in 2001, approachng the target of 8.0 percent.

The Colombian government's growth target for 2001 is 3.8 percent, while other financial sources forecast real GDP growth of 3.3 percent, rising to 4.0 percent in 2002 and 4.9 percent in 2003. The private sector seems skeptical about the target growth figures for 2001, considering the actual 1.75 percent growth detected during the first quarter of 2001.

The growth of the Colombian textile industry has been slow due to the abovementioned 1997-1999 recession period. Future growth will depend on the health of the domestic economy, price trends, export growth, and the general business environment.

Local production continues to be labor-intensive and takes the largest portion of skilled labor among the manufacturing sectors in Colombia. Medellin has traditionally dominated the textile market with the largest textile mills and garment manufacturers for distribution throughout Colombia, and sizeable export quantities to Venezuela, Ecuador, Central America, the Caribbean, Western Europe, and the U.S. Most Colombian textile exports go to two Andean Community countries (Venezuela and Ecuador); however, Peru, Brazil, and the U.S. also receive Colombian textile exports. Other important manufacturing outlets are located in Bogota, Barranquilla, and more recently, in Ibague. Small and medium-sized industries are increasing their productivity and demand for more complex equipment.

According to the National Statistics Bureau, there are approximately 500 Colombian manufacturers that produce textiles. The textiles sector contributes about 5.3 percent to Colombia's manufacturing output, and employs some 200,000 workers directly and another 600,000 indirectly, thus representing 13.3 percent of total employment in the manufacturing sector. Industry trade sources have estimated that cotton textile production represents approximately 43 percent; yarns and woven fabrics, 21 percent; knit products, 19 percent; and man-made fiber products, 8 percent. The textile industry produces annually approximately 800 million square meters of cotton, polyester, nylon, viscose and wool fabrics, as well as twill, satin, cotton poplin and polyester blends.

In addition to cotton and synthetic fabrics and fibers, end-use products supplied by major textile manufacturers include: jeans, underwear, sheets, pillowcases, bed linens, towels, trousers, slacks, dresses, skirts, women's knit tops, t-shirts, men's knit shirts, other knitwear and tops, fleece wear, children's wear, and sportswear.

Cotton represented 50 percent or 84,218 metric tons of the textile industry's total fiber consumption in 2000. The remaining fiber usage is divided between man-made fiber (48 percent) and wool (2 percent). The percentage of man-made fiber in textiles has increased from 42 percent in 1995 to the current 48 percent. The growth of synthetic fiber usage has been at the expense of cotton.

Due to internal crop and rural security problems as well as international competition, Colombia is no longer self-sufficient in cotton production. Cotton production in Colombia has fallen since the early 1990s, due to low farmer returns and increasing insecurity in the countryside. Cotton output in 1999-2000 fell by one-third; a modest three percent increase in output is forecast for 2000-2001. Cotton consumption is also declining, due to the economic recession the country is still experiencing. Cotton imports are forecast to increase three percent in 2000-2001, as the economy improves; the U.S. is the dominant supplier of Colombia's cotton. Imports of yarns/fabrics have declined; cotton yarn imports alone decreased four percent in 1999. India was Colombia's largest cotton yarn supplier due to price considerations.

DISCLAIMER
Information in this report relies on sources including Government Publications, Opinions of industry experts and other public sources. Infomat can accept no responsibility for the accuracy or completeness of such information or for loss or damage caused by any use thereof. All prices subject to change without notice.

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For the 2008 Edition

Published: 2006 August
Market: Mens Womens Childrens
Region: Colombia
Industry: Textiles
Pages: 45
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