Manufacturing is key in Puerto Rico. The island produces electronics, medicine, and clothing, as well as food. To add, primary service industries also include finance, tourism, real estate, and insurance. US investors run these sectors. Puerto Rico also exports medical hardware and rum.
Puerto Rico is a US territory. It is 50 miles east of the Dominican Republic, with the Mona Passage between. It lies 40 miles west of the Virgin Islands and 1,000 miles southeast of Florida.
Puerto Rico’s capital is San Juan. It is also the most populous, and it has the distinction of being the oldest city under US power. In addition, it is the largest manufacturing city on the island. Along with Mayaguez, it is a major city for making apparel. It has areas for oil and sugar refining, brewing, and distilling. San Juan also makes cement, medicine, metal products, and tobacco.
Also, many offices, US banks, and companies operate there. San Juan is the second-largest seaport. Notable buildings in San Juan include; El Arsenal and the Cathedral of San Juan Bautista. The city is also home to Casa Blanca Museum, Casa del Libro, and much more.
Puerto Rico’s GDP is shrinking due to the impact of COVID-19. The island was already in recession when the pandemic hit, which led to high levels of debt. Hurricane Maria had leveled the island only a year before, but it started to bounce back because of relief funding. The pandemic changed that. Many suffered job losses, which led to people leaving en masse and heading for the USA.
Benefits and Strengths in the Market
Service and manufacturing are the greatest strengths in Puerto Rico’s market. These sectors account for more than half of the country’s GDP. Puerto Rico’s leading export partner is the US (which accounts for two-thirds of total exports). Belgium, Italy, and the Netherlands are also major partners. The island’s main export product is pharmaceuticals.
Puerto Rico has 3.1 million persons. The World Bank has classified it as a high-income economy. One of the reasons is that Puerto Rico has many high-income earners. Also, more than half of its people are willing and prefer to try new products. They don’t always stick to the brands they know.
Reasons to Grow Your Business in the Market
There are many reasons to take the risk and start and grow your business in Puerto Rico.
With an emerging manufacturing sector, there is room for employment. Businesses going into that sector have to pay a fixed income tax rate. But, they enjoy relief from certain types of taxes.
Also, there is no red tape in Puerto Rico. Business owners do not have to worry about traveling to and from the United States. If the owner is a US citizen, there is no need for a passport to travel to Puerto Rico.
Also, when doing business in Puerto Rico, entities see growth much faster because of startup incentives. These incentives give companies an edge, often allowing them to lead the market.
About Market Research in Puerto Rico
Are you thinking about opening and growing your business in Puerto Rico? We offer Quantitative, Qualitative, and Strategy Research for companies on the island. Our methods include Surveys, Interviews, and Focus Groups. Contact us now for help in setting up your business in Puerto Rico.