News

Walter Discusses Haiti Textile Industry Recovery

HAITI: Textile recovery relies on infrastructure improvements

03/17/10

Walter T. Wilhelm shares his thoughts on the recovery of the textile and apparel industries in this Just-Style (www.just-style.com) article:

HAITI: Textile recovery relies on infrastructure improvements

12 March 2010 | Source: Ivan Castano Freeman

Haiti’s earthquake is likely to significantly bolster investment after the tragedy brought to light the country’s major infrastructure problems, a leading textiles consultant has said.

"The quake has brought attention to the country’s infrastructure needs," said Walter Wilhelm, chief executive of trade consultancy Walter Wilhelm Associates, adding that long-delayed infrastructure upgrades may now be pursued with the help of international banks and aid agencies.

"Haiti’s labour force and needle is quite good but past investment has been hampered because of very poor infrastructure."

The January quake, which paralysed the impoverished country’s bread-winning textiles industry and could halve this year’s GDP, has triggered an outpouring of international aid and support.

"The response has been exceptional, especially from North America, but also from the whole world," Wilhelm continued. "I think people appreciate that the country’s hourly rates are equivalent or worse than China and that this needs to change."

Indeed, the country has already seen a huge inflow of investment, with some World Bank and other international bank and aid agency loans forgiven, Wilhelm said.

Moreover, in mid February, the Plus 1 for Haiti programme was launched to encourage US brands and retailers to source at least 1% of their apparel production from Haiti to help the country recover from the tragedy, which killed 300,000 people.

Wilhelm estimated it will take at least five more months for the industry to recover. He said 80% or as much as US$40m of the country’s production was lost or delayed for 60-90 days because of the quake.

"You don’t recover from a tragedy like this in two weeks," he added, adding that the country’s roads and ports remain under repair.
 

To view the article on Just-Style.com click here, http://www.just-style.com/article.aspx?id=107034