The DR manufacturing sector seems to be gaining from the present world situation that has US manufacturers contracting work closer to home.
The new president of the Dominican Association of Free Zones, Arturo Peguero, told Hoy newspaper that free-zone manufacturers are seeing an increase in contract orders. He said that several companies have been rehiring workers that had been laid off due to the slowdown experienced over the past two years. According to Peguero, the recovery was first felt in the final quarter of 2002, since which time the volume of orders has continued to rise, given the problems in Middle Eastern countries, such as Afghanistan and Pakistan. Peguero said that both large and small apparel companies are receiving work that in the past had been negotiated with other countries. He explained that Dominican labor costs are once again competing with those of Mexico, and that 140,000 workers are employed in apparel manufacturing operations in the DR free zones. From 2001 to 2002, an estimated 15,000 jobs were lost but have been recovered in the past six months to fulfill the new orders.