Industry & Retail
From The Report: Colombia 2017
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Industry is set to remain an important part of Colombia’s economy, not only for its capacity to create employment, but also for its significant impact on regional development. However, manufacturers face a challenging domestic environment due to fiscal reforms, which are likely to reduce consumer expenditure in 2017. Still, the devaluation of the peso has made the country’s exports more attractive abroad – an opportunity that local manufacturers are looking to capitalise on to solidify their position in foreign markets. Given the number of FTAs the country has signed, Colombian industrialists also face greater competition, the impact of which will vary between segments. Improving competitiveness and productivity is crucial for industrial activities to compete internationally. As for retail, a plethora of new shopping malls bode well for the expansion of sales. However, much will depend on disposable income, with tax hikes set to affect consumer confidence. With the country’s GDP forecast to expand, the sector is likely to continue its rapid growth. This chapter contains an interview with Daniella Souza, President, Dow Chemical, Andean Region.

Articles from this Chapter

Overview

Competitive streak: Exposure to international markets has accelerated the need to improve productivity and cut costs
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Industrial growth has given Colombia a strong internal mechanism for development and an effective way to supply internal demand. Despite its importance in the 1980s and 1990s, when civil conflict and insecurity kept international investors away, the sector has been losing ground as a component of GDP. The opening of the Colombian economy to international trade and a growing number of trade agreements have exposed manufacturing sectors to competition. However, it has also opened up new diversification…

Interview

Above and beyond: Daniella Souza, President, Dow Chemical, Andean Region, on the need for more robust industry
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Interview:Daniella Souza What are some challenges to the growth of the agro-chemical industry in Colombia, and which areas should be targeted for development? DANIELLA SOUZA: The agro-chemical industry saw a very weak 2016, which implies that there is an enormous opportunity for growth. Some factors that could boost the segment include continued infrastructure development to ease product distribution, further regulation and the implementation of better practices. The latter can be achieved…

Analysis

Responding to demand: Retail expansion is driven by rising incomes
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Growth of the economy has translated into an expansion of disposable income for some segments of the Colombian population. Consequently, the retail sector has been developing at an unprecedented speed. This has led to an expansion of the fast-moving consumer goods (FMCGs) segment and a vast increase in modern retail space across the country. Not only has the retail sector been buoyed by new shopping malls and the rising number of international branded stores, but the drive to increase IT…