A Look Major Industries in Mexico in 2019
Major industries in Mexico in 2019 such as automotive, aerospace, and mold and dies face different challenges and opportunities. Here’s an overview of what to expect for the remainder of the year.
Aerospace is one of the major industries in Mexico in 2019
Carlos Robles, Vice President of Bombardier located in the Mexican state of Queretaro believes that, although aerospace is now one of Mexico’s principal industries, there is not enough installed capacity in the country to address all of the demand that is in the market. He notes that “Today, there are large players in the industry that are scheduled to deliver significant quantities of products to buyers in 2024, so what is being expressly sought at this time is supply. Even though over the last several years, there has been an average annual growth in industry exports of 14%, there is still a lot of demand for new processes and products in the sector.”
He also notes that it is estimated that 2018 was, thus far, the “best year in the last five for the sector.” This is so, because, during the last year the aerospace industry in Mexico exported a total of US $7.6 billion dollars’ worth of parts. As one of the major industries in Mexico in 2019, the industry is expected to close the year with approximately US $8.6 billion worth of total sales. This increase represents a growth in the value of Mexican aerospace exports of US $1 billion year over year.
According to the head of the Mexican Federation of Aerospace Industries (FEMIA), Luiz Lizcano, as one of the major industries in Mexico in 2019, the overall goal of the sector is for it to rank in the top ten in the world by the end of 2020, for it to employ a workforce of 110,000 laborers, and for it to have a commercial trade balance surplus of 22%.
Growth expected in the automotive industry
According to Alejandro Burgueno, General Manager of the Automotive Industry Cluster of Jalisco, “with the implementation of the US-Mexico-Canada Free Trade Agreement (USMCA), the regional content requirement of automobiles originating in North America will increase to 75%. This means that local suppliers will have to be further developed to meet this change.” As one of the major industries in Mexico in 2019, the country’s automotive sector will have to further create the conditions that are necessary to attract more Tier 2 and Tier 3 suppliers to the country going forward.
Eduardo Solis, the President of the Mexican Association of the Automotive Industry (AMIA), points out that, “although the USMCA calls for the increase of regional content in the automotive industry to be from 62.5% to 75% of the value of a passenger vehicle, the former figure will be the requirement during the rest of 2019, even if the treaty is approved by all signatories during the present year.”
Solis also notes that “as one of the major industries in Mexico in 2019, the automotive sector has to achieve higher levels of integration in the region as a whole not only in the manufacture of assembled vehicles but also in automotive parts.” Finally, Solis also projects that Mexico will produce a total of more than 5.2 million vehicles annually by 2020.
Among the major industries in Mexico in 2019 is mold and dies
As a result of having recently been recognized as a member of the International Special Tooling and Machining Association (ISTMA), through the Mexican Association of Mold and Die Manufacturing (AMMMT), this sector is expected to continue its robust development for the remainder of 2019.
In this regard, Manuel Oliveira, Secretary General of ISTMA, asserts that the mold and die industry in Mexico has increased its activity in recent years. This has been attributable to recent levels of significant investment in this area. The major industries in Mexico in 2019 that have driven the increased need for molds and dies are the automotive, aerospace, medical device, and packaging sectors. Any time a new product is introduced into any one of these manufacturing industries, new molds and dies are required.
According to Eduardo Medrano, the President of AMMMT, “Because approximately 5,000 molds are consumed by manufacturers in Mexico on an annual basis, the country is attractive to foreign direct investment in this area.
