The increases in the region are being impacted by tight supplies of yarn and thread, however.
Denim exports are also forecast to rise sharply, benefiting makers in La Laguna industrial hub, where factories make denim for the likes of Levi’s and Wrangler, according to Garcia, who leads Fashion Outlet Mexico WTC.
Meanwhile, clothing factories are rushing to boost production and increase spending to market their goods at international exhibitions such as MAGIC. “Demand is growing and in Guatemala, we could have a 10 percent increase [to around $2 billion] but yarn thread is very limited and if this continues, we may not grow that much.”
Still, investment has risen, especially in Honduras, as American brands look to boost output. “There is huge investment in, yarn spinning and apparel,” Sanchez said. “No one says how much but we know of several independent projects.” The event generated $6.4 million in potential sourcing contracts. There were 1,100 international buyers, mainly from the U.S., Ecuador, Mexico and Peru.
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