Tips Every Manufacturer Should Know About South America

Every person that enters the business world does so with the expectation of getting attractive returns. For the endeavour to be lucrative, there needs to be an enabling environment. South America is ideal for manufacturers, for reasons which include the following.

Low Cost of Production

In most South American Countries, the cost of production has drastically reduced. This effort has been made to attract more businesses in the region. The taxes imposed on manufacturers are relatively low, compared to other countries. Manufacturers are specifically encouraged to produce goods for export. Their export tax burdens are reduced to a minimal percentage. This percentage enables manufacturers to produce more. As a result, these countries export more, create more and import less. In return, their Gross Domestic Product (GDP) increases and their standards of living become better.

Availability of Labour

South America has large labour markets, comprising of different professions. They can provide both skilled, and unskilled, labour. These people are used to doing a job using skill, and the concept of automation is not popular among them. Therefore, they can be creative, rather than being mechanical in their work. Thus, it is possible to create a variety of goods, that can compete in international markets.

Availability of Raw Materials

The region has promising results when it comes to raw materials. These materials are yet to be fully exploited. Manufacturers have an opportunity to work for years without running low on these materials. They do not have to import at expensive rates from other parts of the world. Where raw materials exist naturally, there are usually fewer costs involved to produce goods.

It would be prudent for a manufacturer, who seeks growth and profit maximisation, to think about going south. They can be sure of enjoying the benefits of their hard work. In South America, manufacturers can easily realise their dreams, compared to the problems of locating their business elsewhere.