Four highly complex and sophisticated industries in which Bogota has the potential to be a leader
High technology, innovation, trained human talent, and high levels of productivity are the main characteristics of high-value-added products. Discover four industries within this sector in which Bogota has the potential to stand out in the coming years in Latin America
Bogota is the major Colombian center for industry and one of the top trade centers of Latin America. This is due to factors such as:
- A numerous and trained human talent pool of more than six million people.
- Its strategic location and connectivity made possible through infrastructure such as El Dorado International Airport, which is the top cargo airport in Latin America.
- Fifteen free trade agreements in force.
- Free-trade zones.
- Incentives for foreign investment.
- Efficient controls for the development and protection of intellectual property.
In Bogota, there are already industries that produce high-value-added products that need a specialized labor force and a large capacity for innovation. Good examples of this are the chemical and automotive industries, which account for more than 80% of the region’s added value. However, according to a research made by GDP Global and Invest in Bogota, the capital city of Colombia has the potential to stand out in the coming years in many high-value-added sectors, including:
Energy demand continues to grow throughout the world. In the case of Colombia, the IDB calculates that the country needs an investment of more than 9 billion dollars for new capacity. Currently, Bogota-Region exports more than 250 million dollars of electric technology, being the country’s third most exported high-value-added product.
This, along with the human talent of more than 34,000 professionals that obtain their engineering degrees each year - with more than 3,500 of them in areas such as electrical engineering and related fields, makes Bogota a city of opportunities for the manufacture of energy technology products that can satisfy both local demand and exports to Andean countries, Central America and the United States.
Some of the opportunities in this sector are found in areas such as:
- Energy-efficient solutions and demand management (smart electrical networks, automatization of distribution networks, advanced measurement, and telemetry).
- Power electronics (devices to transform and control voltages and currents).
- Distributed generation technology for large consumers.
- Devices for storage and integration of renewable energies (wind turbine inverters, trackers, charge controllers, among others).
Equipment, supplies and electrical devices
Consumption of supplies and electrical devices in Colombia is high. Bogota manufactures more than 70% of the electrical products made in the country and generates more than 61% of this category of exports in Colombia. Despite this, more than 80% of the country’s demand is being supplied through imported products. In addition, consumption is expected to grow even more due to the construction of city infrastructure projects such as the Metro, electric mobility, and smart city solutions.
With more than 3,500 new engineers specialized in electrical engineering and related fields annually, Bogota has the opportunity to:
- Manufacture electrical products for industrial and commercial facilities.
- Manufacture products for the development of mass electric transportation systems.
- Manufacture electrical equipment for IT industries.
- Develop charge centers for electric mobility.
The above could satisfy the local demand and be exported to Andean countries, Central America, and the United States.
Circular Economy – Biopolymers and reused materials
Environmental awareness and sustainable industrial production become more important every day. In this regard, Bogota is a leader in the region for recycling waste. The city has a recycling rate of more than 8%, higher than the rate of cities like Sao Paulo or Mexico City. Also, Bogota has 178 separation and recycling centers where more than 78,000 tons of profitable solid waste are processed, which means 80.3% of the country’s total.
The recycling rate should be higher in the future. Also, there are various Government policies focused on circularity, and goals to increase recycling rates and reduce greenhouse gas emissions.
With this in mind, opportunities exist to:
- Develop and manufacture biopolymers and packaging for the food and cosmetic industries.
- Recycle waste materials such as plastics, electronics, fabrics, among others.
- Treat and reuse wastewaters.
- Develop more efficient technologies to reuse plastic.
- Transform urban organic waste and biomass waste into energy.
Aerospace industry parts and components
It is expected that it will take nearly two years to recover the growth rates that this industry had before the pandemic. Due to this, new opportunities will arise because the industry will need to diversify its suppliers to reduce risks.
Bogota is a good location for this because:
The city has been recognized as one of the aerospace cities of the future due to its innovation and attractiveness according to the ranking of Aerospace Cities of the Future by the Financial Times.
- It has the first cargo airport and the third busiest airport by passenger traffic in Latin America.
- The International Airport El Dorado plans to increase its capacity of 100 operations per hour to 170 by the year 2035.
- The city has an additional human talent of more than 4,000 new mechanical engineers and other aeronautical specialists every year.
- Exports from Bogota of aerospace products have an annual average growth rate of 5.8%.
This know-how and experience make it possible for Bogota to profit from opportunities to:
- Manufacture parts and components for civil aircraft to serve the markets of the United States and Europe.
- Satisfy the demand of the defense sector in Colombia and Latin America.
- Offer maintenance and operations services for commercial aircraft.
- Assemble light aircraft and military training aircraft.
- Produce sophisticated drones.