Honduras is headed for a new challenge, becoming the most dynamic automotive part manufacturing platform for the automotive industry in Latin America.

Light Manufacturing is one of the prioritized sectors of the country. It has a high growth potential according to internal, regional and global economy studies, which places Honduras as the most attractive competitor in transformation costs including energy, logistics, services and labor as well as manufacturing high performance products with global quality standards.

We are currently the third auto parts exporter to United States from Latin America, being cable harnesses and some interior parts the main products exported.

Light Manufacturing production represents 9% of the total exports of the country. At least US$ 646 million were obtained in 2016, nevertheless, this industry´s potential could generate up to US$ 3,600 million. This projections are estimated if the initiatives proposed for the Intermediate Manufacturing sector of the Public-Private Alliance Honduras 2020 are accomplished.

Honduras 2020 Program supports the vision of placing Honduras as the most dynamic cluster in the region, through the consolidation of the country´s strategy for investment focused on product diversification, including brakes, interiors, body parts, seat parts, fuse boxes, among others.

The ultimate goal is to be highly competitive in costs, quality and innovation, facilitating the investment and becoming the preferred supplier of the automotive industry in the region



Honduras counts with strategical geographic location, having the main maritime port of the region certified as Megaport by the US Government Container Security Initiative and also part of the Secure Freight Initiative (SFI).  It allows port to port delivery in an average of 2.4 days to the United States. It is currently in expansion process, which means it will have an annual cargo management capacity of around 2 million TEUs.

The country has a young and highly qualified labor force, which accounts as a very important resource. It is estimated that 63% of the population is under 29 years of age, compared to LATAM with a 52% (according to IHS Global Insights), and more than 10 thousand bilingual graduates each year.

The Honduran Government provides programs that support employment and training, as an incentive to new jobs generation.

Thanks to the excellent human capital, several manufacturing companies have received worldwide awards and recognitions for their productivity and quality performance. The most recent was the Global Continuos Improvement CEO Awards obtained by Lear Corporation in Naco, Cortés, which allows the country to meet significant EBITDA margins by improving costs and transforming and reducing COPQ (cost of poor quality) through continuous improvement projects implementation.

The manufacturing production infrastructure has complete integrated services, as well as advanced technology, with great space availability for purchase, rent or leasing for new projects or extensions.

The manufacturing sector has the capacity to generate its own energy through biomass, solar energy and others, as well as wastewater management technology. This allows high productivity in a sustainable operations model.

The competitive legal framework given through the Free Trade Zone Law provides a variety of fiscal incentives, such as sales and income tax exemption, free tax raw material importation and repatriation of profits, among others.

Currently, there are more than 20,000 highly specialized direct employees in the intermediate manufacturing sector with proven quality vocation, resulting in less than 1% rotation (controllable and uncontrollable) per year, compared to 11% + in other countries.

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