2012 to be difficult for Mexico textile industry

11 Jan '12

2 min read

The textile and garment sector of Mexico is likely to experience a difficult phase during the initial months of 2012, according to experts.

At the beginning of 2012, Mexico's textile and garment industry has 5 percent fewer companies, 10 percent less production and 5 percent fewer jobs compared to the figures at the start of 2011.

The National Chamber of the Clothing Industry (CANAIVE) President Mark Cherem estimates Mexico will produce garments worth MXN 8,236 million (US$ 604.8 million) during the first quarter of 2012.

The growth of Mexican textile and clothing sector is likely to be hampered due to the expiration of the anti-dumping duties that protected the domestic sector from low-priced imports of Chinese goods.

Experts estimate Mexican imports of textiles and garments from China to rise by 30-35 percent year-on-year during the first three months of 2012.

The National Chamber of Textile Industry (CANAINTEX) has found the cost of fabrics and apparels imported from China to be very less, which cannot be matched by Mexican manufacturers.

According to CANAINTEX, the price of denim imported from China is much less compared to the price at which it can be manufactured in Mexico.

Citing another example, Mr. Cherem said, women's innerwear and sportswear imported from the Asian country is available at such low prices that the Mexican manufacturers would not be able to compete with.

Experts say innovative automation techniques need to be implemented to protect Mexico's domestic industry from Chinese textile and garment items that are likely to flood the country's market in the coming months.

However, not many Mexican firms have invested in latest technology. According to industry analysts, only about 30 percent of Mexican companies have switched to automation of their production processes.

Moreover, nearly 80 percent of manufacturing units do not create their own designs and often limit themselves to giving a local touch to readily available designs.

Fibre2fashion News Desk - India

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