Industry & Retail
From The Report: Colombia 2016
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Largely cut off from foreign investment during the 1980s and 1990s due to security concerns, Colombia developed a wide variety of local manufacturing businesses and brands. However, the opening of the economy over the past decade has forced local firms to compete with international imports. Moreover, the rapid growth of the oil and mining industries has shrunk manufacturing’s importance in the wider economy. In the first nine months of 2015 the sector’s proportion of GDP fell below 11%, down from 14% in 2009. Nonetheless, several sub-sectors continue to show promise, and the devaluation of the peso, improvements to infrastructure and the commissioning of a new refinery offer hope of an industrial rebound. Meanwhile, despite the economic slowdown and the weakening of the peso, the retail sector posted solid growth of 3.4% in the first 10 months of 2015, with hardware and home improvement sales (18.3%), and alcoholic beverages and cigarettes (13.5%), among the best-performing segments.

This chapter includes an interview with Christian Daes, Chief Operating Officer, Tecnoglass.  

Articles from this Chapter

Overview

Refocused efforts: Increased competition is creating challenges, but a number of segments hold expansion potential
OBG
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Largely cut off from foreign investment during the 1980s and 1990s due to security concerns, Colombia developed a wide variety of local manufacturing businesses and brands. Companies such as drink maker Postobón, cement firm Cementos Argos or burger chain El Corral are household names in Colombia. However, the opening of the economy over the last decade has forced local firms to compete with international imports. In addition, the rapid growth of the oil and mining industries has shrunk manufacturing’s…

Interview

Staying positive: OBG talks to Christian Daes, Chief Operating Officer, Tecnoglass
OBG
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Interview:Christian Daes What can be done to help Colombia remain attractive to foreign investors given high energy costs? CHRISTIAN DAES: Industrial electricity tariffs in Colombia are high compared to the cost of producing electricity, which is reasonably cheap due to the abundance of water resources and hydroelectric generators. To reduce costs, companies are opting to use alternative energy sources like natural gas, which is plentiful in many regions. Current average prices for energy…

Analysis

Daily basics: Companies in the fast-moving consumer goods segment focus on building their domestic supply chains
OBG
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Fast-moving consumer goods (FMCGs) are often considered a recession-proof segment. Although margins are relatively thin, demand for basic items such as processed food, cosmetics and alcoholic drinks tends to rise steadily, especially in emerging markets with growing middle classes. According to a September 2015 report by the National Statistics Agency (Departamento Administrativo Nacional de Estadística, DANE) for the first time the Colombian middle class has exceeded those classified as poor. Some…