Cost of Raw Materials Again Affects Dominican Industrial Competitiveness in 2026

Martín Adames
2 Min Read

For the first quarter of 2026 (January-March), the Cost of Raw Materials once again positioned itself as the main factor that reduces competitiveness in the Dominican industry, reaching an incidence of 20% and regaining the top spot in the ranking. This was followed by Unfair Competition with 15% and the Low Level of Economic Activity with 13%, reflecting that the main pressures on the sector combine cost factors, market conditions, and weak demand.

In a second group of incidents, the Competition from imported products is located with 9%, as well as the Cost and supply of electrical energy and Fuel prices, both with 7%, which shows that operating costs continue to be a relevant component of the loss of industrial competitiveness. In contrast, factors such as Cost and Access to Financing, Smuggling, Customs Procedures, and Permitting recorded the lowest incidences of the quarter, with values between 0% and 2%.

Main Factors Affecting Competitiveness

Cost of Raw Materials Again Affects Dominican Industrial Competitiveness in 2026 | De Último Minuto English
January-March 2022 to January—March 2026 The first three factors explain 48% of the incidence of factors affecting competitiveness. The Industrial Outlook Survey is conducted quarterly by the Association of Industries of the Dominican Republic (AIRD). It determines, in order of importance, which are the main factors that affect the competitiveness of the industrial sector in a particular quarter. In total, there are fifteen factors that are considered key to a competitive national industry. The behavior of each one is displayed below, ordered according to their level of incidence, during the first quarter of 2026 (January-March).

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