Dominican industry warns of rising costs from fuel and freight prices, calls for innovation

Rising fuel and international freight costs are squeezing Dominican industry. Business leaders are watching closely as December approaches.

Production costs for Dominican industry continue to climb due to higher fuel prices and more expensive international freight. That is the warning from Angelo Viró, president of the National Association of Companies and Industries of Herrera (Aneih), speaking at an event on innovation and quality held at PUCMM. According to Viró, the situation has left business owners uncertain about future raw material prices.

The business leader explained that industries have seen increases in operating expenses, mainly because of fuel's impact on maritime transport. He said that although a gradual normalization of fuel markets is expected, prices are unlikely to return to levels seen before the geopolitical conflict involving Iran, the United States and Israel. The challenge, he noted, is predicting how high those costs could go.

Viró acknowledged the Dominican government's measures to soften the impact, including subsidies for fuel, electricity bills and transport. In his view, these initiatives have helped maintain some stability and avoid larger effects on final prices.

Looking ahead to December, when consumption traditionally rises during the Christmas holidays, the Aneih president said food prices have remained moderate. He explained that subsidies for fertilizers and goods transporters have helped contain pressure on the basic basket. He acknowledged some increases but said they have not reached alarming levels.

Viró also stressed that companies must adopt technological changes to stay competitive in an increasingly demanding global market. He warned that businesses that fail to update their processes will face greater difficulty growing. On artificial intelligence, he said its adoption must be accompanied by investment in staff training.