INTRODUCTION
The dynamism of the industrial sector for any country is determined by an important number of factors that intervene in its behaviour, the external and internal variants such as political and/or economic situations are influential situations for the growth of a country and take special relevance if we talk about emerging economies such as the majority in Latin America, but there is no doubt that the common denominator that defines the growth or contraction of the manufacturing sector is demand, a phenomenon that for Colombia in its internal environment has moderated in the last 6 years due to the low economic growth prospects of the country, showing a growth of only 3.3% in real sales for 2019[i] where the industrial sector contributed a growth of 1.6%[ii].
On the other hand, 2020 was a year that changed the panorama of the global, regional and Colombian GDP leaving a new reality and many lessons, according to experts it is complicated to characterise 2020 due to all the transformations that suffered the commercial, business, political aspects and even the way we did business, forcing countries to accelerate their digital and technology projects turning them into a key tool for business continuity, all these conditions resulted in an economic recession for the world where Latin America is one of the most impacted economies.
For Colombia, although the numbers are still under construction, it is expected to close with a rate of -8%[i] in its GDP where the manufacturing industry would reach a negative variation of -9% or a contemplated -12.4% under a pessimistic scenario, as a result of the decrease in industrial activities where the manufacture of non-metallic minerals stands out, reduction in basic metallurgical products, and of course the manufacture of petroleum refining products and fuel blending activities, the latter directly hit by the reduction in demand for diesel, gasoline and jet fuel by the land and air transport sector. The following graph illustrates the main obstacles [ii] for the Colombian industry during 2020.
It is worth noting that all the companies that based their efforts on generating advantages and differentiating factors for their processes, managed to strategically take on all the challenges generated in 2020.
Despite the major changes in the global economy, Varichem demonstrated its high commitment to remain in the market, which was evidenced in the fulfilment of the goal set in January 2020, and that even with the pandemic managed to successfully complete the objectives set, highlighting among its great strengths the leadership of human talent, the good performance in the development of its processes, and the quality in the delivery of its flagship products.
Varichem, after 25 years of outstanding work in the activities and projects it undertook, gained sufficient experience and knowledge to overcome all adversities presented during the year 2020 in an organised manner. In the past, in the present and in the future Varichem will continue to have the ability to adjust to change and deliver to its customers innovative quality products that cater to the new reality brought about by the current changes in the global landscape. However, all this would not have been possible without the commitment of the employees who belong to the organisation and their hard work to meet the quality, time and efficiency requirements of the market.
The products manufactured in Varichem are 100% Colombian, with international standards and materials of a high level of quality compliance, this has allowed Varichem to reach countries such as the United Kingdom, Paraguay, Chile, Bolivia, Ecuador, Peru, Panama and others, with outstanding finishes and attributes of the final product. The manufacturing and assembly line has stood out by maintaining the quality of its products, combating multiple internal and external factors, committed to meeting the needs of its customers, who make up the most demanding group in terms of quality, price and durability factors that can be found in the market.
OUTLOOK FOR 2021
The economic contractions for each country and in each sector will be reversed and it is expected that 2021 will be a year of recovery which will be the beginning of a path aimed at reaching the figures to which the economy was accustomed before the pandemic, according to ANDI projections the world economy will have a recovery of 5,5%[i] for the economies of Latin America at 3.6%, the percentage projected for Colombia is 5% for 2021 according to the economic commission for Latin America and the Caribbean, which in turn recommends applying all measures to address the productive transformation of the manufacturing industry that goes hand in hand with environmental issues, innovation and technology.
It is of vital importance that Colombian companies are prepared in 2021 to take on this new era of virtuality, which brings with it a number of opportunities for internationalisation, understanding that it is not only summarised in an increase in exports within its sales portfolio, but can also include strategic alliances with foreign companies, and the provision of services for international markets. Regarding the manufacturing industry Varichem de Colombia G.E.P.S.S.A.S. is a generator of change since its production processes, the management and standards of raw materials and the recognised quality of its products together with the dynamism of its branches, allow it to have the possibility of showing products made in the country for international markets, complying with the highest standards of its clients, maintaining its commitment to contribute to the development of the country and showing its Colombian pride abroad.
Sources of information:
[1] (MINCOMERCIO, s.f.)
MINCOMERCIO. (s.f.). https://www.mincit.gov.co/getattachment/433a0476-f1ef-4a27-8af5-b2783c341509/Enero.aspx.
[1] (MINCOMERCIO, s.f.)
MINCOMERCIO. (s.f.). https://www.mincit.gov.co/getattachment/estudios-economicos/estadisticas-e-informes/informes-economicos/informes-macroeconomicos/2020/informe-economico-04/oee-mab-informe-coyuntura-economica-dic-2020-23122020.pdf.aspx.
[1] (ANDI)
ANDI. (s.f.). BANACE 2021 Y PERSPECTIVAS 2021. Retrieved from http://www.andi.com.co/Uploads/Balance%202020%20y%20perspectivas%202021.pdf
[1] (VALORA ANALITIK)
VALORA ANALITIK. (s.f.). Andi: Colombia’s GDP would grow 5% in 2021, but it will take more than two years to reach pre-Covid levels. Retrieved from https://www.valoraanalitik.com/2020/12/30/andi-pib-de-colombia-crecer-a-5-en-2021-pero-tardar-m-s-de-dos-a-os-en-alcanzar-niveles-precovid/
[1] KEEP UP NEWS. (s.f.). News: Contexto general. Retrieved from https://keepup.news/business/varichem/210127?ref=-MQtiUJwgye1BdDe0I2P
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