Companies are moving to Mexico due to COVID-19

Coronavirus has boosted the Mexican automotive industry

Companies are moving from Asia to Mexico due to COVID-19

The effects of the COVID-19 have been felt all across the globe, through all channels. Economy, education, industry, the whole world is standing still as measures are being taken in order to end the crisis. The effect on the worldwide automotive industry has been reflected with a shortage of auto parts due to the supply chains being cut off.

The market has had an electronic part dependency on the Asian market, especially China, but, as COVID-19 effect on the supply chain is at its peak, the world seeks other countries to mitigate the shortage. As said shortage is making companies, such as Jeep and Audi, cease production, the eyes are now set on Mexico. 

According to Forbes, China has been the distribution center for almost 20 years, since they offer a labor force that allows for a massive and cheap production to be possible, making it tempting to companies to accept the country as their main supplier.

“Recently, an input supplier based in Guanajuato, that provides parts for Mazda3 and CX-30 Mazda models, increased their production by 50%, as they moved their manufacturing line from Jiangsu, where the industry has been wildly affected by the COVID-19 said Forbes.

Companies, such as Mazda, have started to work with their suppliers residing in Mexico in order to lessen the supply shortage.

“Many international companies started seeking national supplies. Up until the pandemic, some clients didn’t authorize the supplier change, from international to national, even if Mexican suppliers offered same quality products and better delivery times, with a slight price increase. This situation helped us change their mind.” Said Luis Aguirre, president of the Mexican National Council of the Manufacturing Industry Exports.

Seeing as how the world supply chain is moving, setting shop in Mexico should be on the top of the mind for any industry, not only the automotive. Mexico has a strong industrial sector, being automotive, aerospace, and many more, and is becoming increasingly crucial as a strategic point for any industry that requires input supply. This is where industrial parks in central and northeast Mexico come to play, as the manufacturing industry is most prominent.

Deciding to settle in Mexico is more important now than ever. This is why, here at VYNMSA, we would like to assist you setting shop in Mexico. Backed up by more than 25 years of experience and over 350 successful projects, delivered to fully satisfied customers, we are fully equipped to assist you with your BTS projects, lease and sale, and have 22 Inventory buildings ready for immediate occupancy, a total space of 1.7 million Sq.Ft. 

Get ahead of the curve and settle your input supplier in Mexico with VYNMSA.

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