Central American nation Gautemala is turning out to be a favored sourcing destination for apparel and textiles in the US. Guatemala’s textile and apparel industry is known for its prowess in producing performance fabrics and sportswear and its clients span Walmart and Target to Old Navy and Gap to Puma and Reebok, among others.

The clothing industry in Gautemala accounts for roughly 19 per cent of all non-traditional product exports surpassing traditional shipments such as coffee and bananas. The country’s 150 apparel manufacturers, 39 textile mills and 200-plus trims and services firms can handle small, specialised runs as easily as they churn out mass-produced goods.

About 70 per cent of the apparel sector’s foreign investment is from Korea. Gautemala’s factories are more flexible, so they can easily accommodate whatever the client requests. They have speed-to-market compared to Asian countries. The turnaround is good and this is important for people in the fashion business. For some US companies, from the moment they place the order to when they receive it, it’s not more than six weeks.

As China increasingly falls out of favor with foreign companies, smaller markets are positioning themselves as a low-cost, high value solution for US brands and retailers. The US is the largest market for Gautemala.