Industry & Retail
From The Report: Colombia 2014
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As the significantly divergent performances of its various sub-sectors suggest, Colombian industry is at a crossroads. Some sub-sectors have sustained robust growth during the past decade and have developed export channels targeting regional markets. However, other industries have not been able to overcome the number of challenges that nearly all Colombian manufacturers must contend with, in particular high transportation costs and increased international trade which has brought low cost goods to the domestic market. The sector’s contribution to GDP fell from 14% in 2011 to 12% by 2013, prompting the government to implement several programmes to buoy domestic manufacturing. As the cosmetics industry demonstrates, however, opportunities still abound, and there is a place in the regional market for Colombia, a mid-sized exporter, to meet its neighbours’ growing levels of consumer demand. This chapter contains an interview with José Alberto Vélez Cadavid, President, Grupo Argos.

Articles from this Chapter

Overview

Manufacturing turns to foreign trade and new markets to adapt to a changing environment
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It has been a goal of successive Colombian governments to diversify the economy by developing the manufacturing sector. To a certain extent, this endeavour has been successful. Colombia has a stable industrial base with a presence in a range of industries from processed foods to petrochemicals. Some of these sectors have sustained robust growth during the past decade and have developed export channels targeting regional markets. However, other industries have not been able to overcome a number of…

Analysis

Construction materials are set to benefit from infrastructure and housing projects
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With road and residential construction thriving, Colombia’s construction materials industries appeared poised for steady growth in the medium term. Materials produced domestically include cement, steel, PVC, brick and several raw resources including gravel, sand and metallurgical coal. All of these sectors stand to benefit from large-scale government infrastructure projects and subsidy programmes. The initiatives, which include low-cost housing developments, mortgage subsidies and highway projects,…

Analysis

Production and exports of cosmetics are growing in tandem
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One of the most successful sectors under the Productive Transformation Programme (Programa de Transformación Productiva, PTP) is cosmetics, which has drawn in foreign direct investment from numerous multinationals, has grown faster than the economy at large and has transitioned from being a net importer to a net exporter in the past 15 years. Productivity & Domestic Sales Cosmetics manufacturing and domestic sales have grown in step with one another. Both production and sales were around $800m…

Interview

OBG talks to José Alberto Vélez Cadavid, President, Grupo Argos
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Interview:José Alberto Vélez Cadavid Can the construction sector cope with the latest infrastructure concessions? JOSE ALBERTO VÉLEZ CADAVID: We believe we can cope. On the one hand, we are very satisfied with how the Colombian government has structured key projects in such a diligent and detailed way. On the other hand, Colombian engineering firms have experience abroad in construction and infrastructure projects, and have also been open to partnerships with renowned international firms.…

Analysis

A special status: Investors enjoy preferential treatment at free economic zones
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Free economic zones (FEZs) have been an important draw for both domestic and foreign investment in Colombia in recent years. Companies operating in these zones enjoy preferential tax and Customs treatment in exchange for compliance with minimum investment and employment requirements. Overseen by the National Tax and Customs Directorate (Dirección de Impuestos y Aduanas Nacionale, DIAN), part of the Treasury, FEZs have proliferated since 2005, when new regulations, laid out in Law 1004 of 2005, expanded…

Analysis

Demand-driven: Increased purchasing power and consumer confidence are supporting a shift in shopping habits
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As a new Colombian middle class emerges, retail is beginning to modernise to meet the needs of a wealthier consumer base. Big Latin American retailers, sometimes called multilatinas, are introducing their brands to the country, and malls have been opening frequently, at a rate of one every 23 days in 2013, according to the National Retail Federation (Federación Nacional de Comerciantes, Fenalco). However, there still remains a great deal of opportunity for retail brands to convert customers who…