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Advanced Manufacturing Sector

Costa Rica’s success in attracting foreign direct investments into the Advanced Manufacturing Sector relies on a combination of factors:

  • Well educated, multitask and productive workforce
  • Positive cost/benefit relation
  • Reliable infrastructure
  • Friendly-business environment
  • A government committed to make things happen

“Most modern manufacturing is located in Free Trade Zone parks. There are several in Costa Rica, and the government offers significant incentives to companies wishing to locate there...” "Costa Rican free trade initiatives target precision manufacturing, but also services… There is significant focus on high tech medical manufacturing”.

John A. Engelhardt, MS,
FAIMBE
Knowledge Ventures, LLC
BONEZONE Magazine, Spring 2008

 

Evolution of the Sector

  • The industry stands today as the largest contributor to the country’s manufacturing output, capital investment and exports
  • There are currently 55 companies employing 13,228 people
  • Over the past 20 years, the country has implemented a number of policies and programs to diversify its exports
  • Electronic components comprised 30% of total exports in 2008
  • The subsectors in the Advanced Manufacturing industry in Costa Rica are: Telecommunications, Electric Assemblies, Electronic Components, Semiconductors, Engineering and Software, Contract Manufacturers, Consumer Electronics, Engineering and PCB Repair, Metalwork, and Automotive

Advantages

 

  • Abundant and well qualified supplier base for the Advanced Manufacturing Sector
  • The government has programs geared towards the establishment of productive linkages between local suppliers and the multinational companies
  • Costa Rica has an abundant water supply, reliable hydroelectric power, and an advanced telecommunications system
  • The country’s energy sources are clean and redundant: 93% is generated from renewable sources (hydroelectric, geothermic and wind)
  • The industrial cost of electricity ranges from $0.07 to $0.10 per Kwh

 

  • The rate in domestic currency (Colón) has had an average increase of 10% over the last 5 years - less than the inflation rates for the same period of time
  • According to the Global Competitiveness Report 2008-2009 published by the World Economic Forum, Costa Rica ranks first in Latin America in Quality of Electricity Supply
  • Costa Rica has an extensive highway system, a total of 7,890 km per 1,000,000 inhabitants (4,902 miles per 1,000,000 inhabitants)
  • Two major international airports (one located in the capital city of San José the other one in Liberia, Guanacaste), and three seaport terminals (two located in the Caribbean coast and one in the Pacific)
  • In 2008, INA trained over 50,000 people in specialized technical areas such as electronic, electric, mechanical, and processing engineering

 

Telecommunications

  • L3 Communications
  • Multimix Microtechnology
  • Panduit
  • Smiths Interconnect
  • Suttle

Electric Assemblies

  • Bticino
  • Eaton
  • Havells Sylvania
  • Phelps Dodge
  • Schneider

Semiconductors

  • Intel
  • Triquint

Electronic Components

  • Astrolab
  • Bourns/ Trimpot
  • Controles de Corriente
  • C&K Coactive
  • Electrotechnik
  • Marysol Technologies
  • Merlin VMS
  • Pharos
  • RDF Sensors Group
  • Samtec

Engineering and Software

  • Altanova
  • Emerson
  • Twin Engines

Contract Manufacturers

  • Camtronics
  • Irazú Electronics
  • Micro Technologies
  • Tico Electronics

Consumer Electronics

  • Conair/ Babyliss
  • Panasonic
  • Saco International
  • Vitec/ CPP

Engineering and PCB Repair

  • KES System
  • Microcell
  • Teradyne

Metalwork

  • Daniels Manufacturera
  • Oberg Industries
  • Olympic Machining
  • Penn United
  • Prolex
  • Weststar

Automotive

  • Bridgestone
  • CML
  • Deshler Automotive Products
  • Firestone Industrial Products
  • Hutchings Automotive Products
  • Proquinal
  • Seton