Background on the Textile Industry in Puebla
The textile industry in Puebla, Mexico, is a significant contributor to the region’s economy. With around 300 companies and approximately 25,000 jobs, the sector has been facing challenges due to illegal imports and subvalued Chinese goods.
Who is Jorge Moreno Rojas?
Jorge Moreno Rojas is the president of CITEX (Cámara de la Industria Textil), an organization representing 176 of the 300 companies in Puebla’s textile sector. His leadership is crucial in addressing the industry’s current struggles.
Current Situation and Challenges
The textile industry in Puebla has experienced a 62% reduction in production capacity, leading to a decrease from four to two factory shifts. This situation has resulted in the loss of 1,200 jobs, with potential for further layoffs.
Illegal Imports and Subvalued Goods
The main issue is the illegal importation of clothing and subvalued raw materials, primarily from China. These imports have negatively impacted the industry’s ability to maintain full production capacity.
Impact on Local Businesses
Moreno Rojas emphasized that the textile industry is not against the opening of Chinese import stores but is concerned about how these goods are introduced for commercialization in Puebla. He also highlighted the importance of ensuring that these products are not contraband, which includes verifying licenses issued by local governments.
Currency Fluctuations and Imported Materials
The peso’s exchange rate has further incentivized the importation of unfairly priced textiles, threads, fibers, and fabrics from Asia for local manufacturing.
Opportunities and Future Prospects
Despite the challenges, Puebla’s textile industry remains competitive due to its skilled workforce. This has attracted interest from US-based companies seeking production partners.
Recent Business Developments
In May, several Puebla-based companies participated in a b2b meeting with 100 national and international buyers, aiming to establish themselves as textile suppliers. The industry hopes for increased business opportunities in the remainder of the current year.
Key Questions and Answers
- What is the current production capacity of the textile industry in Puebla? The production capacity is currently at 62%.
- How many jobs have been lost due to the challenges faced by the textile industry in Puebla? Approximately 1,200 jobs have been lost.
- What is the main concern of the textile industry regarding Chinese imports? The primary concern is the illegal importation and subvaluation of clothing and raw materials, which negatively impacts local production.
- What measures is the textile industry advocating for? The industry seeks stronger actions from federal authorities to stop illegal imports and ensure that Chinese products are not introduced through contraband channels.
- What opportunities does the textile industry in Puebla have? The skilled workforce and recent business developments, such as b2b meetings with potential buyers, present promising opportunities for growth in the textile sector.
