In recent years, Guatemala has achieved a remarkable transformation as a sourcing destination for the apparel and textile industry, consolidating its position as a diversified supplier in the competitive global market. What was once an industry focused on the production of basic garments has evolved into an integrated full-package model, in which virtually all stages of the supply chain are managed. This change has positioned the country as a strategic partner for international companies.
Andrea Mansilla, Trade and Investment Promotion Advisor at the Guatemalan Apparel and Textile Industry Association -VESTEX-, points out that one of the main advantages Guatemala offers its trading partners is its strategic location. With ports on both the Atlantic and Pacific coasts, the country can quickly supply both coasts of the United States, ensuring short delivery times, a key competitive advantage in the textile and apparel sector.
In addition, Guatemala shares the same time zone with the United States and has direct flights, which facilitates commercial and operational relations between companies. This favorable business environment has allowed for better inventory management, with advanced replenishment strategies and production flexibility. Guatemalan companies have the capacity to ship products in as little as seven days, which gives them a high level of efficiency compared to other markets.
Mansilla also highlights the country’s commitment to sustainability and the implementation of responsible practices. Certifications and traceability of textile and apparel products ensure environmentally friendly production, a factor increasingly valued by international markets.
From the Maquila to the Complete Package
Historically, Guatemala’s textile and apparel sector was based on the maquila model, where the country only assembled basic garments, whose parts were shipped from abroad. However, the reality has changed. “Now we talk about tailoring and the complete package,” Mansilla explains. The country no longer only assembles, but also has an entire supply chain, from spinning and textile mills that manufacture the fabric to clothing companies, finishing service companies and accessories. This has made it possible to add value to the garments and offer a complete package to international customers.
Diversification and Value Added
Diversification has been key to the growth of Guatemala’s apparel and textile industry. Unlike other countries in the region that specialize in commodities, Guatemala produces a wide range of garments, from sportswear to children’s clothing. This ability to diversify makes the country a highly competitive cluster.
In Guatemala, garments are not only assembled, but also undergo processes such as embroidery, sublimation, screen printing and complex dyeing, which increases their value in international markets. Proof of this is that 54.11% of the country’s total exports are value-added. Mansilla points out that “this ability to offer more elaborate products has given Guatemala a significant advantage over other suppliers in the region”.
In recent years, the cluster has been strengthened, investing in technology and innovation to create a more agile value chain that produces better quality and higher value garments.
The logistics disruption that occurred in 2020 accelerated the trend of “nearshoring”, i.e., placing production orders closer to their final destination. This highlighted the importance of product traceability and of having production centers closer to consumer markets to avoid future disruptions or delays. Subsequently, in 2023, a new disruption related to excess inventories occurred, further underscoring the need for efficient supply chain management to respond quickly and flexibly to market fluctuations.
This reconfiguration in global value chains opens a window of opportunity for Guatemala to attract new investments, increase productivity, diversify production, promote greater innovation to continue expanding participation in specialized market niches and increase market share, which would translate into greater job creation and development.
Source: https://guatemalabeyondexpectations.com/tecnologia-el-futuro-de-la-industria-de-vestuario-y-textiles/
Traceability and Compliance with International Standards
Traceability and compliance with international regulations are essential for companies sourcing from Guatemala. According to Mansilla, ” the country has set high standards of compliance, especially with regard to sustainability certifications, which ensures that textile and apparel products meet the demands of the global market. This reinforces transparency in the supply chain and ensures that garments are not linked to improper labor practices or negative environmental impacts.”
Future Challenges and Opportunities
Despite progress, the Guatemalan textile/garment industry faces challenges, such as the limited availability of certain textiles beyond cotton and polyester. However, the proximity to the United States remains a unique strategic advantage, allowing for great flexibility in production and inventory control. This proximity also allows brands to adjust their production even up to two weeks before delivery, something difficult to achieve with more distant suppliers, such as those in Asia.
The Future of Sourcing in Guatemala
Looking ahead, Guatemala continues to position itself as a key destination for textile and apparel sourcing. Its diversified supply, its ability to add value to garments, and its commitment to certifications and traceability make the country a competitive option compared to other markets. Andrea Mansilla concludes that “sourcing from Guatemala allows companies to comply with regulations, maintain traceability, and guarantee a more efficient and faster supply chain,” which ensures that the country will continue to be a strategic partner in the apparel and textile industry.
For more information about sourcing in the apparel and textile industry in Guatemala, we invite you to contact our Promotion, Trade and Investment team.
E-mail: vestex@vestex.com.gt
Phone: +502 2410 8323
