Why Anduro remains committed to Honduras in 2022 and beyond
Last year, we asked this question: Why is Anduro headquartered in Honduras?
In the ensuing time, we’ve grown to further appreciate our decision to maintain our manufacturing and shipping facilities in Honduras, the reasons are clear and undeniable:
The port of Honduras is much, much closer to our customers in the United States than Asian ports.
The difference in speed to market can be measured in weeks, not just days.
When there was a worldwide shipping crisis, as there was in 2021, Anduro was still able to deliver an industry-leading 99% on-time performance in a year when many competitors and other businesses struggled to deliver anything at all, let alone on time. Being Honduras-based allowed Anduro to focus on quality and speed of manufacture, knowing that smooth and speedy shipment of the product from the port in Honduras to Gulfport, Mississippi was never in question.
The labor pool in Honduras is deep and ready to work.
The country has a growing pool of skilled labor, as well as a relatively high level of English proficiency, notably higher than major Latin American investment destinations such as Brazil, Colombia, and Mexico.
Honduras is investing in infrastructure.
Roads, ports and airports get the attention they deserve from national and local governments.
The largest recent sign of that investment was the 2022 official opening of MHPR/Palmerola, also known as Comayagua International Airport in the middle of the country. While this airport will not affect Anduro’s business directly, it’s an investment that proves Honduras is doing everything it can to make the country convenient for businesses and visitors alike.
Honduras is outperforming its neighbors in economic performance.
This is despite a COVID-driven retreat in GPD in 2020.
According to the World Bank, “Honduras possesses multiple strengths and the potential for faster growth and higher shared prosperity, due to its strategic location, a growing industrial base, ongoing efforts to diversify its exports, and a young and growing population.”
Real GDP in Honduras grew at an average annual rate of 3.1 percent over the past decade. The country also implemented prudent macroeconomic policies during recent years, anchored in the Fiscal Responsibility Law, and posted the second highest economic growth rates in Central America, only behind Panama. The country’s GDP growth reached 3.7 percent in 2018 and 2.7 percent in 2019, above the average in Central America and well above the average in Latin America and the Caribbean (LAC).
The country’s economy rebounded to a 11.9 percent growth in 2021 and is expected to grow a 3.1 percent in 2022 and 3.6 percent in 2023. A new government took office in early 2022 and will have the opportunity to chart a course consistent with the recovery and reconstruction needs of the country and to address the critical constraints to growth.
Nearshoring is taking hold in Honduras and Central America.
According to BizLatinHub, “Nearshoring to Latin America has increased significantly over recent years, as growing costs associated with manufacturing in China have made the region increasingly attractive to not only US and Canadian companies, but also European firms.”
Global tensions and the recent logjam of container ships on the high seas and in West Coast United States ports, BizLatinHub reports, are leading more companies to come to the same conclusion that Anduro did years ago: Central America in general and Honduras specifically provide a great place to manufacture and ship products from.
“Growing environmental concerns, coupled with the health crisis and Russia’s recent war in Ukraine, “have created a context where the region can contribute to the global economy and the fight against inflation through increased participation in global supply chains in a sustainable and equitable manner”
“From our perspective, we welcome all the companies discovering that Honduras is a great place for business,” said Anduro CEO Marc Datelle.
The cultural attractions and lifestyle of Honduras are many and varied.
Whether you’re looking for the best coffee or cigars in the world or want to dive deeper into nature, you’ll find a great deal to love about Honduras. Starting this month, we’ll be highlighting these attractions every month.
The people of Honduras are friendly to us, the weather is often wonderful, and the lifestyle is relaxed while still rewarding hard work.
Anduro chose Honduras very intentionally.
Anduro President and CEO Marc Datelle says Anduro chose Honduras very intentionally.
“We could have located our company just about anywhere, but no matter how we crunched the numbers, Honduras and its business-friendly environment, was the perfect choice,” Datelle says. “When you consider the proximity to the United States, the labor pool, the favorable logistics, and the fact that we are able to conduct business virtually tax free thanks to CAFTA, the decision in favor of Honduras practically made itself.”
“What’s more,” Datelle continues, “the largest port in Central America, Puerto Cortes, is just minutes from our plant and only 3 days on the water from a major U.S. port in Gulfport, Mississippi. Compare that to 4 weeks or more coming from Asia or India and its very clear why Honduras has huge benefits for our clients as well.”
Business strategy consultant Deloitte recently weighed in on Honduras in its 2020 report Doing Business Honduras, in which they noted the country “has advantages for rapid growth and greater prosperity, as it has a strategic location, a growing industrial base, continuous efforts to diversify its exports, and a young population (65% of the population) and growing. Honduras has the Caribbean Sea to the north, El Salvador and the Gulf of Fonseca to the south, Nicaragua to the east, and Guatemala to the west, which represents a comparative advantage.”
Honduras is a great location for Anduro’s business.
“Honduras just makes sense for Anduro and our customers,” says CEO Datelle. “We love it here, we love our workers, we love the location and we love how easy it is to build a great product in Honduras.”
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