Manufacturing industry and economic development

Production, international trade, national market. They all play an important role in the economic development of a country. Most of these activities are possible thanks to the manufacturing industry. This is why it can be a key component for the expansion of the Mexican economy.

A healthy relationship between production and economy

Manufacturing industries are those that transform materials, substances, or goods into new products. This process leads to finished products that can be sold in the marketplace. 

Year by year, it becomes more apparent to economists that a healthy manufacturing industry has a great positive impact on the economy. Simultaneously, it becomes a great indicator of the health of said economy.

Furthermore, it serves as one of the backbones of the Mexican economy as the manufacturing industries employ millions of people. Whether directly or indirectly, many Mexicans work in its many sectors to earn their living. To learn about the impact this industry has on the economic development of Mexico, first we must establish how it is divided.

What are the types of manufacturing industries?

The manufacturing industry can be broken down into several distinct industries, each as important as the previous. The following are the major categories in which it is divided:

  1. Clothing and textile industries. These are companies that process raw materials, such as wool, cotton, and flax, to manufacture cloth, fabric, and bedding. 
  2. Food production. It can be considered as the simplest of all manufacturing industries. As its name implies, it involves the production of food, from farm to table, including canning and purifying food.
  3. Petroleum, chemicals, and plastics. They involve the process of turning chemicals into usable products. These could be coal, crude oil, rubber, and other chemicals.
  4. Metal manufacturing. Its production includes all forms of steel, aluminium, and iron manufacturing, as well as all forging, coating, stamping, and engraving.
  5. Electronics, transportation, and computers. Everything electric power related goes in here. All appliances, semiconductors, chips, microprocessors, and audiovisual equipment.
  6. Leather, wood, and paper. Wood and paper production come from the same source, raw wood manipulation. Leather, on the other hand, involves tanning and curing.

Basically all industries can be considered a part of the manufacturing industry. It is no doubt why it plays a role in Mexico’s economic development.

Why is economic development important?

A country needs its economy to keep its citizens afloat. When said country’s economy grows, so does its GDP, and with it comes an increase in the value of national output, income, and expenditure. 

In other words, this can improve the living standards of the population in the form of higher real incomes. It also brings the ability to use more resources in areas such as education and health care. Economic growth also translates to economic development, which if done effectively can work to retain and grow jobs and investment within a community.

Mexico has a strong financial management. In the past 10 years it has grown an average of 2.1% yearly. It is projected that the Mexican economy will continue through 2020 and 2021. The country’s government has an economic development strategy that will allow it to strengthen economic growth.

This plan also aims to stimulate public and private investment in strategic sectors. This could also lead to an increase in Mexico’s exports. Thus, here at VYNMSA we would like to assist you in settling in this country. 

We are one of the leading industrial real estate developers in Mexico. Plus, we have over 30 years of experience and have delivered over 500 projects to fully satisfied customers. We are also fully equipped to assist you in developing your BTS projects. All while offering lease and sale solutions that always have a win-win approach. 

We also have around 20 inventory buildings ready for immediate occupancy. This is a total space of 2 million SqFt across Northeast and Central Mexico. 

Contact us and bring your company to Mexico with VYNMSA.

Source: bizfluent, Economics Help, Marquette, Proyectos México

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