A brief recounting of the past 6 months and what is projected
As the world, slowly but surely, moves along from the effects of the pandemic there is no doubt that there were some economic and industrial setbacks. The electronics industry in Mexico was no exception and, as with many industries, it was affected mostly due to the lack of components that used to be imported from China.
“The lack of Chinese supply has affected many manufacturing lines in Mexico making them either slow down or completely shut down” stated Bernardo Fernández, director of Complet, back in February as the pandemic was merely starting.
The electronics industry hardest blow was taken on April. As Mexico dependen up to 50% on foreign components to manufacture its electronics. According to INEGI, this industries physical production volume index had its peak in March, with a score of 140.4, and its lowest in April, scoring 99.6. This would represent a turning point, as the economy started to recover.
But, this has been merely a step back, one that affected the whole world. As proof of this, the Mexican electronics industry had been growing steadily. Previous to COVID-19, Mexico expanded this industry by 70% in a span of 2 years, which is a great indicator of a healthy industry. This is backed by INEGI’s index, as it shows June scored 125.7, which is around 5 points less than January of the same year.
Part of Mexico’s great performance in the electronics industry is the fact that 9 out the 10 biggest electronics manufacturing companies are situated in the country. Additionally, the ratification of the USMCA has also contributed to the industry’s recovery, as the incentive of exporting without tariffs is very attractive for investors.
Furthermore, the pandemic effects weren’t all bad. Actually, it started a chain reaction in the electronics industry leading it to enter Industry 4.0. There are 22 electronics manufacturing companies that have already become fully automated.
“It was a flash incorporation of the technology that allows us to continue with production levels of what’s essential, with less people involved. There was an evolution of these manufacturing industries that allows them to work with less people,” stated Román Alonso Caso, president of the Mexican National Chamber of the Electronics, Telecommunications, and Information Technology Industry (CANIETI).
There is no doubt, Mexico’s industries have shown to be very resilient, such is the case of the electronics industry. Nevertheless, setting shop in a country that shows how adaptive its industries are is reassuring for any company. Hence, here at VYNMSA we would like to assist you in settling in Mexico.
We have around 20 inventory buildings ready for immediate occupancy, which means a total space of 1.7 million Sq.Ft. across Northeast and Central Mexico. With over 30 years of experience, we are one of the leading industrial real estate developers in Mexico and have delivered over 450 projects to fully satisfied customers. We are also fully equipped to assist you in developing your BTS projects, with lease and sale solutions that always have a win-win approach.
Contact us and set shop in Mexico with VYNMSA and discover how to take advantage of the adaptive electronics industry.
Source: Forbes, El Economista, INEGI, Ki Group, Electronicos Online