Mexico has undergone a dramatic transformation in recent years, going from a struggling developing economy to a manufacturing powerhouse. Mexico is currently the 11th largest economy in the world and the second-largest economy in Latin America after Brazil.
The country has benefited from a surge in foreign investment over the last few decades, with many businesses relocating their manufacturing facilities to Mexico. Tetakawi helps manufacturers in Mexico navigate the complexities of establishing and operating within this booming Mexican industry.
Here are few Mexican industry which are rising:
1. Foreign Investments
In recent years, Mexico has become one of the most attractive destinations for foreign investors. According to the World Investment Report 2021, Mexico ranked 17th among the world’s top twenty economies to receive foreign investments.
The report states that foreign direct investment inflows into Mexico rose by 11% in 2020, reaching $29 billion USD. The primary reason behind the growing interest of foreign investors is Mexico’s strategic location next to the US, well-established supply chains, and skilled workforce.
2. Automotive Industry
Mexico is one of the largest exporters of vehicles in the world, with the automotive Mexican industry being a key player in the country’s economy. Many major automobile manufacturers, including General Motors, Ford, and Volkswagen, have established assembly plants in Mexico to cater to the North American market.
3. Aerospace Industry
The aerospace Mexican industry is also a significant contributor to Mexico’s economic growth, with Mexico being the fifth-largest exporter of aerospace products globally. The country’s aerospace industry began with the establishment of General Electric (GE) facilities in the 1940s, which sparked the development of the industry.
Today, there are several major companies operating in the aerospace industry, including Bombardier, Safran, Honeywell, and Eaton Aerospace. As a result of the sector’s rapid growth, the Mexican government has established the Mexican Aerospace Cluster, which seeks to promote the aerospace industry’s development in the country.
4. Manufacturing Maquiladoras
Manufacturing maquiladoras are export-oriented assembly plants that import raw materials and components duty-free to allow for cheaper production. They account for a significant portion of Mexico’s exports.
The agreement between the US, Canada, and Mexico helped develop many maquiladoras to establish north and south of the Border. Maquiladoras has been a significant part of the Mexican economy in recent years, offering jobs to the country’s population. Some of the products made and assembled in maquiladoras include televisions, cars, and electronic devices.
5. Mexico’s Manufacturing Boom
Mexico’s rise in the manufacturing industry can be attributed to its strategic location, well-established supply chains, and skilled labor force. Mexican industry such as automotive and aerospace have played a significant role in the country’s economic growth.
The importance of Maquiladoras cannot be overlooked, as they have been offering varied employment opportunities for the country’s population. Mexico’s attractive investment policies have contributed to the rise of foreign investments, which has further accelerated the country’s growth. As a result, Mexico’s economy is fast gaining recognition in the global market, and it’s highly likely that the trends will continue to improve for the years to come.