Island embraces vast opportunities in hi-tech

Hewlett Packard’s plant in Aguadilla, 80 miles west of the capital San Juan, manufactures 33% of the group’s total ink production, and continues to grow.

In the last 50 years, Puerto Rico’s manufacturing base has shifted markedly from the original labor-intensive industries, such as tobacco, leather and apparel products, to more capital-intensive and specialized labor areas such as pharmaceuticals, chemicals, machinery and electronics. Today, the island’s primary exports consist of antibiotics, tranquilizers and other medicines, as well as machine parts and instrumentation.

The government is eager to encourage the trend, nurturing new areas such as IT, communications and software, by improving access to infrastructure and creating an appropriate enabling environment. Already home to one of the most diverse manufacturing sectors in the Caribbean, Puerto Rico is ready to move forward, edging into advanced research and development, and frontier niches like the biosciences.

Many of the world’s leading IT brands are already present. Hewlett Packard, for instance, has been active in Puerto Rico for many years. Its plant in Aguadilla, 80 miles west of San Juan, manufactures 33% of the group’s total ink production, and continues to grow. It is a case study for manufacturing success in 21st century Puerto Rico.

IRIS SANTOS Vice President & General Manager (Americas Hub) HP Ink Supplies Business

“When I started we had 400 employees, now we have 1,200 employees,” says Iris Santos, Vice President and General Manager (Americas Hub) Hewlett Packard Ink Supplies Business. She insists that the quality of the local labor force – educated, skilled and versatile – has underpinned the firm’s growth and its commitment to
innovation. “We have very talented people who work with us. They are capable of handling the pace and growth of the business. We challenge our benchmarks constantly. The fact that this is a multinational company triggers a high level of competition.”

Crucially, industry experts like Ms. Santos believe that Puerto Rico has all the right ingredients to develop into more specialist areas under the technology umbrella. “It is amazing the transformation that is taking place at present, though there is more to do. Puerto Rico is very capable of making the shift from a manufacturing economy to a technological economy.”

As head of the Puerto Rico Techno Economic Corridor (PRTEC), a non-profit organization that seeks to promote technology and medical clusters on the island, Ms. Santos is also working closely with the government to develop the island’s future economy.

The initiative provides important support to the economic development of the western area of the island, to create a competitive environment for investors and entrepreneurs to establish hi-tech companies. She says Hewlett Packard is always keen to support the local community in which it operates. “Supporting PRTEC is supporting Puerto Rico and the people who work at Hewlett Packard. We take good care of
our people.”

The organization is involved in several key areas. One is the development of research and technology infrastructure to facilitate the growth of IT industry.

Another is enabling the development of the Aguadilla region in which Hewlett Packard is based.

PRTEC has been assessing future infrastructure requirements including the connection between the Port of the Americas and the Aguadilla airport. “The airport in Aguadilla is a magnificent location not only for cargo. We are looking forward to improving that facility together with the Ports Authority. We have been making recommendations. It’s been a great experience. The government is incorporating some of our recommendations.”
One core project under way is the development of the Americas Technology Park, an industrial complex designed to foster growth among IT companies on the island, especially smaller firms. Niche opportunities include electronics manufacturing, contact centers, healthcare IT, banking and insurance processing, software development and pharmaceutical process outsourcing.

The island continues to stand as a pillar among other much larger Latin American countries for its flexibility, agility and ability to adjust rapidly to industry and technology changes. “When you have an economy based on manufacturing, which is starting to move into services, research and development, the structure that you have for manufacturing does not necessarily fit in. A change of mentality is required. The government is working with us so that businesses can evolve.”