Peru, located in the western part of South America, borders the Amazon Rainforest which provides an abundance of natural resources. Let’s look at what makes the manufacturing scene of Peru unique as they tend to import more than they export which creates an unbalance in their economy.
Peru projects recovery after years of declining manufacturing. Economists expect that the manufacturing sector will expand up to 2.5% this year. Fishing and mining boosted the positive result in the first quarter highlights. The positive result achieved by manufacturing production also increased in the first quarter of 2017, when it grew 1.70% according to Industry and Mype deputy minister Juan Carlos Mathews. In this period Peru’s exports grew 16.4%, higher than those registered by Paraguay (8%), Ecuador (4.7%) and Brazil (3.3%).
The industry began to show signs of recovery in November and December of last year, but unfortunately. However, the impact of El Niño Costero phenomenon slowed some progress. With time, the expectation is that there will be further recovery. Julio Velarde, president of the BCR, specified that this year non-primary manufacturing would decline by -2.2%, while the mining and hydrocarbons sector would be one of the fastest growing, driven by nonmetallic mining.
Agriculture Leads the Way
On the other hand, according to the consultancy PwC, Peru leads the list of countries with the highest agricultural production in the world. In fact, the study shows that export of agricultural products doubles every five years and annual growth in this sector is estimated at 17%. Likewise, the study shows that coffee cultivation and the livestock sub-sector are two of the fastest growing. It should also be noted that agro exports would reach 7 billion dollars. Adding to the variety of goods that is grown in the country would Peru in an even better position.
Women in Manufacturing
Perhaps focusing on increasing women in manufacturing could play a role in recent economic improvements. According to the Ministry of Production, only 6.7% of female entrepreneurs work in the sector. In addition, only 24% of the manufacturing companies in the country are led by women. To compare, 66% of micro enterprises are led by women despite statistics that only 46.7% women in business manage to complete their business studies.
Improvements in Innovation
The 83.4% of manufacturers say that they obtained financing to innovate from their resources. The results of this study determined that 61% sought innovation, of which 56% succeeded in innovating and the remaining 5% did not achieve. Of the group that tried to innovate, 20.5% focused on food products; 13.7% in clothing; And 13.6% in processed metal products. Of the companies that managed to innovate, 50.2% said that it did so within the technological area.
The manufacturing recovery for Peru has everyone looking up, especially with the integration of technology. Peruvians are looking forward to a future where technological innovation can prevent weather from having catastrophic results on a whole economy and increasing the number of women within the manufacturing sector.
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