Listin Diario newspaper reports that Dominican free zones have already started to receive orders for the manufacture of goods that were previously contracted in Pakistan and China. The new orders are a blessing after the pace of orders was interrupted by the US terrorist attack. El Caribe newspaper reports that major US retailers such as Wal-Mart and K-Mart are moving some of their production to the DR, as an alternative to Bangladesh and India. “We have businessmen knocking on our doors concerned over what might happen in Asia. It is an opportunity that we have to take advantage of. The situation is definitely positive,” said Jose Clase, president of the Dominican Association of Free Zones. He said Dominican plants are known for quality and fast delivery. Raimundo Haché, in charge of the Omega y Alpha plant which employs 1,100 textile workers, forecast an upturn in 60-90 days. In July of this year, the DR exported US$1.321 billion to the US, down 3.36% from last year. Indonesian exports, which cost less than Dominican apparel, had grown to US$1.304 billion, up 22.75%. Likewise, Bangladesh in July exported sales of US$1,254 million, up 7.7%. El Caribe says the winds of war could reverse the trend of production moving to Asia which has lower production costs than the DR. Nevertheless, Arturo Peguero of Grupo M, which employs 3,500 in its manufacturing plants, warns against creating false expectations. “Contracting is not going to take off in the US, the demand continues to drop,” he said. “It is good that these orders are coming, but anyway we are still showing a decline. The good news is that instead of it being 12%, the drop will be 9 or 10%.” The DR has opened production of more sophisticated apparel lines, not being able to compete with the lower wages and lower costs of Asian and Central American work centers.
