The World Cup boosted industry sales in July; the sector took the opportunity to exit inventories

Bogotá faces mounting concerns over potential energy shortages between 2027 and 2028, with warnings from industry groups, business leaders, and local authorities highlighting the critical state of the city’s power infrastructure. The issue has moved beyond academic debate and become a top priority for Bogotá's administration, which plans to address it urgently with the incoming government led by President-elect Abelardo De La Espriella. The warning comes after delays in transmission lines have increased the risk of electricity shortages in the capital. Miguel Silva, secretary general of Bogotá’s Mayor’s Office, emphasized that transmission infrastructure will be one of the key topics discussed with the new government. He noted that Bogotá accounts for nearly a quarter of the country’s economic activity and that any disruption in power supply would have far-reaching consequences beyond the city’s borders. “If Bogotá goes dark, a significant portion of the national economy goes dark,” Silva stated. These concerns align with recent alerts from energy operators, businesses, and organizations about delays in crucial infrastructure projects aimed at ensuring reliable energy supply in the coming years. On July 22, Juan Ricardo Ortega, president of Grupo Energía Bogotá, sent a letter to the newly elected president warning that the nation is facing a pivotal moment regarding energy security. He stressed that energy security should not be viewed solely as a concern for the mining and energy sectors but as a determinant for competitiveness, investment, and the well-being of millions of Colombians. Ortega provided data illustrating the scale of the potential crisis. Only 7.4 percent of the planned generation capacity for this year has been operationalized, while more than 60 percent of transmission projects face delays. Over 10.2 gigawatts of capacity remain blocked due to these delays. Additionally, between April and June, the system operator XM issued 165 load-shedding instructions to maintain grid stability. Although these figures reflect the national situation, Bogotá stands out due to its growing energy demand and reliance on unfinished transmission projects. The problem extends beyond mere availability of energy, according to both Ortega and the Bogotá administration. Without adequate transmission networks, generated power loses value, and without natural gas, the system lacks reliability. These issues underscore the urgency of addressing the delays in infrastructure development. In a separate development, Bogotá is set to see a boost in employment opportunities as Auxis expands its operations in the city. The company announced plans to open a new center for Knowledge Process Outsourcing (KPO) in Bogotá, aiming to hire over 500 bilingual professionals within the next year. This expansion follows the company’s arrival in Colombia in 2021 and reflects Bogotá’s status as a hub for skilled bilingual talent in Latin America. The new office, located in Connecta 26, will provide services to U.S.-based organizations in areas such as finance, accounting, human resources, customer service, information technology, and artificial intelligence. The growth of the nearshore model in the region has driven this expansion. According to a survey by Grant Thornton, 44 percent of companies already operate or are considering establishing operations in Latin America as part of their service delivery strategies. Auxis aims to strengthen its capabilities to support clients' transformation and growth processes through this new facility. Meanwhile, the World Cup has had a positive impact on the manufacturing sector in Colombia. Sales in July were boosted by consumer spending related to the tournament, along with new customers and product launches. The Industrial Purchasing Managers Index (PMI) compiled by Davivienda and S&P Global stood at 52.7 points in July, indicating continued growth despite a slight decline from June’s 53.7 points. New orders saw a notable increase at the start of the third quarter, marking the second strongest growth since November 2025. However, the surge in sales did not fully translate into increased production. Manufacturing activity rose at the slowest pace in three months, partly because some orders were fulfilled using existing inventory. Finished goods inventories declined for the fifth consecutive month, and several companies reported insufficient raw materials, prompting increased purchases during July. Logistical challenges continue to hinder industrial recovery. Delays at ports, shortages of essential raw materials from suppliers, and traffic problems affected input delivery times. Inflationary pressures eased slightly, with production costs rising at the lowest rate in six months due to higher prices for chemicals, food, metals, textiles, and transportation. However, industry pricing also increased at the slowest rate since early 2026. Despite these obstacles, the outlook for the industrial sector remains favorable. German Cristancho, director of Economic Research and Financial Markets at Banco Davivienda, noted that 42 percent of companies expect to increase production over the next twelve months, anticipating economic recovery, higher demand, and the introduction of new product lines.