Ten years ago there were 120 companies which employed 30,000 people, whereas today there are 60 companies employing only 8,000.
An article in Nacion.com highlights the bankruptcy closure of the Compañía Textil Centroamericana
as a basis for analyzing the decay of a once very important productive sector in the Costa Rica
Executives from companies still involved in the market indicate that the main cause the industry’s deterioration is that "domestic labor is more expensive than in the rest of the Isthmus and in Asia."
Other factors identified include increasing prices of raw materials and the high amount of social security contributions paid for employees.
Several companies have closed their doors in Costa Rica and have opened elsewhere in the region where there are lower operating costs.