Paraguay: Recycling and nearshore opportunities
We're sure you’re all well aware of the impact plastic has on our daily lives, whether it be good or bad. However, the plastic market itself does become quite a bit more interesting the deeper you dive into it. Today, we will take a look at how plastic is an integral element of Paraguayan recycling efforts, and also how the ideas of outsourcing and nearshoring make the region the perfect location for industry, and not just plastic, for future development.
Plastic and recycling in Paraguay
As with most nations, plastic forms a large part of the Paraguayan economy in terms of
Meat, plastic and aluminium form the bulk part of this year’s products exported overseas from Paraguay, and in the first quarter of the year alone, US$426,223 was earned from this.
COVID-19 is partly down to this increase, unusual, I know, but because Paraguay and industry there has been able to somewhat flourish, unlike most countries, your opportunities for investment there are looking pretty good. New foreign relations for plastic export also mean that Paraguay is becoming at least a regional player in new markets, branching out from just the technology that we’ve seen in the past on our blog, and also showing that Paraguay mean business, which leads us on to recycling.
Like we saw with Argentina, a community approach looks to be the best when promoting
recycling, and in Paraguay, this is no different. The capital city, Asunción, has seen that trust is the key to increasing demand for waste management and recycling opportunities within different social groups and eventually covering the entire social population. As prospective investors, as the recycling potential has not been maximised yet, but a certain willingness to develop is clear, perhaps Paraguay is the perfect location for smart recycling platforms, or the nearshoring of US companies to develop the programs to make this a reality.
What are the benefits?
Time Zones: Technical operations rely on clear communication, and if we look at common outsourcing locations like China, time differences make any kind of troubleshooting or urgent communication dependent on small windows of opportunity. Though, on the other hand, nearshoring facilitates in Paraguay compared to the United States mean more constant flows of communication meaning services, such as tech development for smart recycling, maintaining their fluidity and reducing the knock-on effects in the home country of the business. Eastern Standard Time is only two hours behind Asunción, making workdays broadly overlap and mean you can stay in touch with your employees constantly.
Innovation: Politics and trade tariffs from the United States on China have meant that new opportunity is desperately needed for outsourcing businesses. Paraguay continues to show it can be a reliable alternative and with regards to nearshoring, it is reported that the industry could be worth US$72 billion to the Latin American economy. If we look at this with Free Trade Zones, Paraguayan innovation and its proximity with the US demonstrates an alternative angle to nearshoring, as for businesses, it opens the door to benefits previously overlooked by historic ties of interdependence.
Costs: Important to all of us is the decreased cost of freight shipping and communication,
leaving more money to inject into other aspects of the business, such as staff training or
fortifying connections with the nation where the nearshoring is taking place, maybe by
traveling more often to the country to meet with employees and maintain high standards
and morale amongst the team.
So, if you are interested in finding out more, contact us today! Below this article you will
find a link to set up a free fifteen-minute consultation with us to discuss your options
further. At Creimerman, our team of professional global citizens would be happy to help you with your personal or professional cross-border ventures and help make them a success.