Thumbnail

Analysis of Manufacturing sector in Mexico : Detailed analysis on major industries along-with data on the export, import, performance, growth and projections for the sector

Looking to buy the report?

Simple assembly operations in Mexico have evolved into complex manufacturing operations including televisions, automobiles, industrial and personal products. While inexpensive commodity manufacturing has flown to China, Mexico attracts U.S. manufacturers that need low cost solutions near-by for higher value end products and just-in-time components. Mexico’s low landed costs are attractive when considered in comparison to other developing country options. It is suited to serve as a Mexico manufacturing venue for short to medium-run products that have a high degree of engineered content. Its proximity to the United States enables technical and production personnel to coordinate activities to bridge temporal and physical distances. This nearness to market, as well as to the consumer base, also fulfills the just-in-time requirements of both. Additionally, Mexico’s efforts to enforce patent and intellectual property laws are advanced compared with those in place in other low-cost nations.

While the manufacturing sectors of Brazil, Argentina and other Latin American countries are falling, Mexico is experiencing a solid growth because of its integration with and dependence on markets of United States.  Mexico opened up its economy during late 1980s and early 1990s and signed the North American Free Trade Agreement (NAFTA) which helped the economy to mature into an export oriented industrial economy. Today USA accounted for 80% of Mexican exports. Today Mexican factories have become competitive alternatives to Chinese exports which helped it increase exports of high end valuable products like automotive, aeronautical and electronic products. Rising wages in China with economic development also helped Mexico regain export competitiveness. Average manufacturing labor costs in Mexico are now almost 20 percent lower than in China, whereas in 2000, Mexico’s labor costs were 58 percent more expensive than China’s. Mexico’s rising export competitiveness is also helping the manufacturing sector to grow. Although slightly affected by slumping oil prices, the manufacturing sector is expected to grow in the upcoming years.

Mexico has developed a national expertise in certain industries, which makes it more attractive for companies to locate or expand plants there. Because Mexico is a major auto manufacturer, 89 of the world’s top 100 auto parts makers have production in the country

The companies are concentrated in five Mexican states, reducing transportation costs. In appliances, more than 70 manufacturers are in the country, ranging from components makers to assemblers of both small and large appliances.

Drivers

Key factors in the growth of Manufacturing Industry are low cost of setting up and running industrial facilities, , high trade among American nations, free trade agreements.

Challenges

Lack of skilled labor or training, falling oil prices, lack of visa availability, and anomalies in regulation are the biggest challenges for the Manufacturing Industry.

What the report offers

The study identifies the situation of Mexico and predicts the growth of its manufacturing market. Report talks about the manufacturing production, consumption, import and export with prices and market trends, government regulations, growth forecast, major companies, upcoming companies and projects etc. In addition to it, the report also talks about Economic conditions of and future forecast of its current economic scenario and effect of its current policy changes in to its economy, reasons and implications on its growth. Lastly, the report is divided by major import & export and importing and exporting partners.

Looking to buy the report?

Want some specific customizations?

Our clients include:

prev-arrow
next-arrow

Looking to Customize Report?

Please Enter Email ID

Please Enter Message