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CONVERSION MAGAZINE: The Converting and Package Printing Magazine for all Latin America Report on Latin America Futures
- Will Latin America grow in the year 2000?
- Should I invest in Latin America RIGHT NOW?
- How can I find out what Latin American Industry leaders are thinking of the year 2000?
- To answer these questions Conversion magazine conducted an interview with some distinguished figures from the converting industry in Latin America to learn how they expect the sector to develop during the coming year. Comments by industry leaders include:
Guillermo Torres, President of Prepac de Chile S.A., one of the major manufacturers of flexible packaging in Latin America stated, "The Asian crisis indeed affected us. But we've already touched bottom and are going to start seeing renewed demand for packaging-input materials. Customers are requiring ever more sophistication in the product, and therefore we converters have had to invest in new technology, in order to provide that quality. Many of our customers are exporting their products directly to the store shelves of the United States. So the packaging must combine all of the necessary quality features, above all in areas such as sealability, quality of printing, quality of internal dividers, etc. For all those reasons, we continue to find it essential to invest in, and are investing in, new machinery."
Novacel is one of the largest manufacturers of flexible packaging in
Latin America.
Juan Espinosa Sanchez, President of Novacel S.A. de C.V. (Mexico) reported
that, "Our countries possess tremendous growth potential [for the
conversion industry] precisely because of the current under-utilization
of flexible materials. In spite of the difficulties being experienced
by the economies of countries such as Chile, Argentina, Colombia, and
Brazil, if we succeed in resolving our economic situations, growth is
going to be phenomenal. For example, we now view the Southern Cone as
a very important economic power. I believe it's worth the effort to continue
investing in Latin America, because of that old saying, 'The early bird
gets the worm.' The companies that arrive on the scene first in Latin
America will be the ones that are going to best position themselves. Conversely,
if companies keep waiting until the Latin American economies get back
on track, such firms could be very late in achieving leadership roles."
Carlos Fernandez A., is President of Fasepac, one of the major manufacturers of flexible packaging in the Caribbean. He reported, " There is a total reengineering going on in the Latin American region's packaging sector. Markets are much more open than they were up until a few years ago. We're not yet totally globalized as regards to tariff rates, but we certainly are in terms of quality. The product that is not well presented is not sold. Therefore, the flexible packaging industry has improved its quality in the last three years, to a much greater degree than it had in the preceding 30 years. In the case of the Dominican Republic, for example, the country's installed capacity is ten times greater than it was five years ago. Consequently, the entire machinery inventory has been upgraded, for the most part by the factories that have added new top-level product lines. And that is happening in all of the countries of the region. I am optimistic regarding market expansion in the region. The growth of the flexible packaging sector in the Caribbean has been sustained at around 15% annually for the past four or five years."
Jose Carlos Christiani de la Torre, is President of ABIEA, the Brazilian Association of Adhesive Labeling. He is said, "In spite of the general economic panorama of the region, Brazil's paper tags and adhesive labels sector is growing. Predictions for growth for 1999 are in the range of 18%, even though the historical growth average has been around 15%."
Tom Caplinger, Latin America Sales Manager, Polyfibron Technologies,
stated,
" The middle class in Latin America has continued to grow, and that,
for the packaging industry, is a determining factor. For the United States,
Latin America has the great advantage, which Asia does not enjoy, and
that is proximity. Thus the economic and technological benefits [of that
proximity] shall always exist. The investments from, and confidence on
the part of, the United States will help this market grow. But it is those
companies with the will to conduct business with a long-term view, instead
of those that see things only in the short term, that really deserve to
invest and work in Latin America."
Edmur Batista, President of ABFLEXO/FTA (the Brazilian Flexographics Association), noted that, "The Brazilian market suffered a great deal as a result of the exchange crisis, but it has managed to recover, and is engendering important investments. In the pre-printing sector, as well as in that of printing and particularly in the area of flexographics the market has succeeded in overcoming uncertainty. The industry, in general, is performing."
Conversion magazine researchers also note that:
- In its recently published World Economic Outlook, the International Monetary Fund estimates that Real GDP in the Latin American region will grow in 2000 at 3.7%, which is a strong recovery from a GDP decline of (0.5)% in 1999. In terms of trade, which is what you are interested in, the IMF predicts import growth in 2000 of 10.5%, dramatically different from the import decline of (4.5)% experienced in 1999. In other words, the region will import US$288 billion in 2000.
- Mexico, one of the most important economies in the Americas, had a strong 1999 and is forecast to continue its growth. One of the principal advantages of marketing on a pan-regional basis is that you can always keep your bets hedged and ensure that your message will always reach those in countries that are on up-cycles.
Contact: Conversion magazine, at www.revistaconversion.com