This conclusion by the Chamber of Industries of Costa Rica (ICRC), through the Business Outlook Survey and Rating Factors for Competitiveness in the Costa Rican Industry, which helped assess the strengths and weaknesses facing the sector.
According to survey results, product quality, price and production technology, occupied the top three in terms of internal factors influencing business competitiveness. Occupying the fourth and fifth are quality of customer service and then skills and capabilities of labor.
The study noted increasing competition and the great changes in the way we do business as a result of new information and communication technologies, requires companies to have a closer relationship with their customers so customer service is another of the factors that must become relevant to industries.
As for external factors that adversely affect the industry, the top three in order of importance are access to financing, the cost of electricity and the availability and quality of human resources. However, with significant differences depending on the size of companies.
Other factors affecting industrial enterprises in general, financing costs, taxes and social contributions, fuel costs and paperwork and permits which hamper their development. Ending the list, poor road and port infrastructure.
Other findings identified in the study are that 73% of industrial workers are men and 27% female. And as the fate of the production sector, 53% of companies exported, while 47% use the domestic market as their destination.
Fitch Ratings discussed the 2011 outlook for the transportation and energy sectors in Latin America.
Fitch expects that during 2011 infrastructure assets in Latin America will continue to be resistant to the global financial crisis. Moreover, the economic outlook in developed countries has magnified the importance of supportive regulations to keep adequate financial profiles in transportation projects.
Fitch Special Report: Industry Risks and Challenges for the New Government.
El Salvador’s electricity sector exposure to government intervention and regulatory uncertainty during recent years has affected the financial performance of the companies in the sector. The impact of government intervention has been somewhat mitigated by recent measures taken by the current administration to eliminate energy
Slow growth is projected in El Salvador, very good performance in Nicaragua, stability in Panama, more competition in Guatemala and moderate growth in Costa Rica.
From a report by Fitch Ratings entitled "2015 Perspectives: Central American Banks":
Fitch Ratings has revised the outlook for the sector from positive to stable, because the agency does not anticipate substantial improvements in respect to the previous year. The system's profitability will remain low, with less than 1.0% ROAA. The results are limited because of the high dependence on net interest margin (NIM) and additional expenses in provisions for loan losses, due to regulatory changes that established gradual constitutions of general provisions for the best qualified loans. In addition, Fitch does not anticipate improvements in revenue diversification and also foresees a significant revenue exchange rate differential. This last factor has a significant influence on the results of the banks in Costa Rica.
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