A brief aid on selecting the right Mexican State for your company.
Most of the major industries in Mexico are found in a handful of States. As such, this article will assist you in deciding where to establish your company in Mexico, according to what your business produces.
What are the major industries in Mexico?
Mexico’s industrial sector is a juggernaut. Some of the major industries in Mexico can be placed amongst the global top 15, like:
- The electronics industry
- The automotive industry
- The aerospace industry
Worldwide, the country is 6th place in the automotive industry, 7th in the electronics industry, and 12th in the aerospace industry. This is why these are some of the major industries in Mexico.
As the world is decentralizing its supply chains from Asia, due to the current pandemic, Mexico is becoming a popular and viable option to establish a factory. Here is a rundown of the industries previously mentioned.
The electronics industry.
One of the major industries in Mexico is the electronics industry. The country is currently the sixth largest electronics supplier in the world, with no signs of stopping. In 2018, Mexico registered nearly 9.6 billion dollars in electronics production, with an average growth rate of 5.5%.
States such as Baja California, Nuevo Leon, Jalisco, and Mexico City, are among the biggest producers in the country, with Queretaro making waves as it starts to develop this industry fast.
According to El Financiero, by 2018 electronics production in Queretaro had grown by a whopping 60% in six years. Thus, making it a great option to settle in a state with less competition and a lot of promise.
Moreover, Nuevo Leon is also a big contender. The state exported nearly 3.4 billion dollars of the grand Mexican total, making it a strong option for those looking to bring their company to an established market.
Establishing an electronics supply chain in Mexico can be a great opportunity for those seeking to grow, as the industry is projected to grow by 4% yearly, between 2017 to 2022.
How does the electronic industry function?
As one of the major industries in Mexico, the electronics industry is divided in 6 major segments:
- Industrial equipment.
- Network and communication equipment.
- Semiconductor supply and manufacturing services.
- Medical devices production.
- Computer and office products.
- Consumer electronics and home appliances.
The electronics industry consists of several companies that design, manufacture, and assemble electronic products. It is driven by innovation, as it is dependent on technology.
The automotive industry.
Another of the major industries in Mexico to consider is the automotive industry. If exporting to America is what your company is looking for, 83% of Mexico’s automotive exports goes to the USA.
Furthermore, this industry is currently flourishing in Mexico as the COVID-19 pandemic is making companies move their supply chains away from Asia. Mexico’s top 3 automotive manufacturer states are Coahuila, Sonora, and Puebla, with Guanajuato and Nuevo Leon being the emerging forces.
Coahuila produces nearly 16% of the national automotive market, as companies such as General Motors, Fiat Chrysler, and Freightliner are established in the state. Of all the manufacturing activities in Coahuila, over 60% are automotive related, making Coahuila a strong option for an automotive supplier to establish.
Guanajuato and Nuevo Leon are great options too, as both are growing it’s automotive infrastructure. Recently in Guanajuato, companies, such as Mazda, have increased their production by 50% to mitigate the shortage of Asian supplies.
Getting ahead of the curve by bringing your company to Mexico for easy future supply is a wise decision.
How many companies are in the automotive industry in Mexico?
Being one of the major industries in Mexico, there are around 48 auto parts manufacturers in Mexico. Some of the most prominent are:
- General Motors.
These 4 companies own 60% of the auto parts manufacturing plants in Mexico.
The aerospace industry.
Another one of the major industries in Mexico is the aerospace industry. Mexico is the 12th largest aerospace manufacturer in the world. This might change soon, as it is projected to increase its exports by around 10% this year, according to El Financiero.
The aerospace industry in Mexico is focused primarily on non-military technology, used for commercial flights. This industry has a strong presence in Coahuila, Querétaro, Baja California, and Sonora, with Nuevo Leon rising up.
The availability of highly specialized individuals is one of the main reasons this industry is strong in these states.
“You can find a highly specialized labor force, from specialized technicians, such as airplane parts welders, to mechanical and chemical engineers that can take care of surfaces exposed to flight conditions“ said Eugenio Marín, TechBA aerospace director.
With such easy access to specialized labor forces, establishing an aerospace company in these states will result in easy staffing.
How big is the aerospace industry in Mexico?
There are around 300 companies in the aerospace industry in Mexico. Around 20% of these offer design and engineering services. The other 80% are aircraft parts manufacturers. Most of these are in the northern parts of the country.
Overall, with such a booming industry and accessibility, settling in Mexico is becoming a key aspect for a prosperous manufacturer. Hence, here at VYNMSA, we would like to assist you in setting up shop here, as we manage industrial real estate where the major industries in Mexico are.
With almost 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 fully equipped to assist you in developing your BTS projects, with lease and sale solutions that always have a win-win approach.
Furthermore, we also have around 20 inventory buildings ready for immediate occupancy, which is a total space of 2 million Sq.Ft. across the Northeast and Bajio Area.
Contact us and settle where it’s best for your company in Mexico with VYNMSA.
[email protected] | Celular: (+52) 81 22 02 85 99
Sources: El Universal, Milenio, INEGI, Modern Machine Shop, Expansión, El Financiero, Predictive Analytics Today, Comercio Exterior