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  Productivity and Quality Are the Key Notes of A Unique Industrial Environment
 

Puerto Rico’s strong supply of highly skilled labor, significant incentives package, favorable wage differential and well-developed manufacturing infrastructure provide the ideal environment for industries.

Puerto Rico sustains over 2,300 diversified industrial plants - including many leading Fortune 500 multinationals - that produce everything from apparel and computer motherboards to pharmaceuticals and medical devices. All of them benefit from the Island’s wealth of facilities, favorable business climate and a well-educated, bilingual workforce that is capable of maintaining demandingly high quality standards.

The loyalty of the Puerto Rican workforce, seldom found in other markets, coupled with its ability to quickly master the most intricate tasks, has contributed to make the Island one of the largest high-tech industrial development centers in the United States. The value added by Puerto Rican workers for every dollar in production payroll wages is double the average performance registered in manufacturing on the U.S. mainland. No wonder plants in Puerto Rico often rank #1 on measures of productivity and quality within their parent company structures.


  Competitive Clusters: Economies of Agglomeration
 

In the classical location theory there is input orientation vs. market orientation. More complex models include multiple input and outputs, geographic variation in labor costs, tax and regulatory dimensions. To insure its position as one of the premier manufacturing locations in the world and facilitate its further development, Puerto Rico has identified its top five industry groups or clusters:

 

  Identifying industry clusters has several advantages:
 
  • Suppliers are enhanced – There is more specialization, more competition and an economy of scale is developed.
  • Knowledge spillovers – There are more opportunities to seek experts in various areas or share knowledge in specific areas
  • Reduced transaction costs – Common protocols and language for the industry are created.
  Globalization can increase clustering
 
  • Lower trade barriers reduce need to locate in market companies
  • Reduced transportation and communication costs facilitate long-distance shipping and lower costs for standardized, objective transactions.
  • Some transactions are more effective in close proximity: Issues include complexity, lack of standardization and variability.

 
 
PRIDCO - Puerto Rico Industrial Development Company : Commonwealth of Puerto Rico