#Manufacturing #San Jose #Costa Rica #PROCOMER

Costa Rica's Expanding Manufacturing Exports

Costa Rica has long been recognized for its vital role in the global manufacturing landscape, particularly in the field of medical devices. However, recent findings from the PROCOMER study reveal a significant evolution in the country's manufacturing export portfolio. As of the end of 2024, manufacturing accounted for an impressive 67% of the nation's total exports, translating to a value of US$13.26 billion out of US$19.894 billion overall. This marks a 10% growth from the previous year, largely fueled by contributions from the precision and medical equipment sector, alongside newer segments that are expanding the nation's manufacturing outreach.

Broadening Horizons

According to the study conducted by the Costa Rican Trade and Investment Promotion Agency (PROCOMER), there are now more than 1,700 companies exporting around 3,368 different products to international markets. This diversification reflects a transformation in Costa Rica's manufacturing capabilities, which now includes sectors such as electrical and electronics, chemical and pharmaceutical products, metalworking, plastics, rubber, textiles, leather, and footwear.

Among the leading products driving this momentum are needles and catheters, medical prosthetics, electrodiagnostic equipment, cables, antiserums, and textiles. Laura López, General Manager of PROCOMER, emphasized that the manufacturing sector's dynamism is not solely reliant on medical devices. Instead, it now reflects a broader spectrum of technologically sophisticated processes that enhance the country's competitive edge in international markets.

Regional Market Dynamics

While North America remains the most lucrative market in terms of export value, Central America is home to the largest number of exporting entities from Costa Rica. In the analyzed period, 1,245 companies targeted this region, primarily exporting products like electrical cables, textiles, and apparel. In comparison, 702 companies exported to North America, 344 to South America, 293 to the Caribbean, and 285 to the European Union.

This distribution demonstrates Costa Rica’s robust foothold in geographically proximate markets while continuously pursuing opportunities in essential global markets. López remarked on the significance of this diversification as foundational to reducing market dependence and bolstering the resilience of the export sector.

The Role of Diverse Production Regimes

Further insight from the PROCOMER study uncovers that the growth of manufacturing is taking place under both free trade zones and definitive regimes. Approximately 84% of manufacturing exports were derived from free trade zones, with key products like medical devices continuing to play a major role. On the other hand, 14% of exports stemmed from the definitive regime, involving products such as electrical cables, glass containers, paints, and varnishes. This versatility highlights Costa Rica's capacity to maintain and develop complex industrial processes across varied production frameworks.

Conclusion

Costa Rica's manufacturing landscape is not static; rather, it is evolving with a clear trajectory toward diversification and expansion. The study from PROCOMER is not just a reflection of past performance but a roadmap indicating that the nation is well-positioned to leverage new opportunities in various manufacturing segments. As it capitalizes on both existing strengths and emerging industries, Costa Rica is set to enhance its standing in the global export arena well into the future.