Various Industries
Thanks to the diversity of manufacturing in different industries, Mexico offers to any industry attractive and available production places. Mexico's manufacturing industry generated $607 billion USD in revenue in 2023 with the key sectors such as automotive, food and beverage, chemicals, and basic metals. Those major exports accounted together for 32.8% of overall exports sales from Mexico. With a 7% compound annual growth rate (CAGR), the industry benefits from a skilled workforce with an average age of 29 and 150'000 engineers graduate annually, creating a strong talent pipeline.
Beside manufacturing, Mexico is also attractive acting as a disribution center. Indeed, thanks to its proximity to the United States, many Mexicans have a high IT knowledge and are graduated in English Speaking universities, thus they also take advantage to offer IT Services like Call Centers.
Some Hard Facts
- fourth-largest exporter of vehicles worldwide
- 12thlargest exporter in the world
- 93 out of the top global 100 automotive parts manufacturers operate in Mexico
The Manufacturing country
China has been known as the destiny of outsourcing or expansion country worldwide; it has an efficient operation, low cost labor and a large market potential. In the last decades though, Mexico has became a manufacturing base too thanks to its open borders and trade policies. The nations’ proximity to the United Statees provides companies with a large market for exporting its products and services, especially in in manufacturing.
Main Exports to the United States
Driven by steady foreign direct investment (FDI), a specialized workforce with cost-efficient labor, and well-developed supply chains, Mexico has positioned itself as a global manufacturing powerhouse, attracting major industries and reinforcing its role in international trade. Additionally, the country has strengthened its competitiveness through strategic trade agreements, a modern infrastructure network, and a highly skilled labor force. Its ability to offer cost-effective production while maintaining high-quality standards makes it a preferred destination for manufacturers seeking efficiency and market access on a global scale.
In addition, due to the recent events like the pandemic, the broken supply chain (sea freight blocked the river), or the tense relation between United States and China, many companies have to overthink their strategy and diversify their portfolio. Thus, in the next years, Mexico will become an even more important trade partner for the United States than they are already now. Indeed,manufacturing in the country continues to grow and Mexico remains the 12thlargest exporter in the world.
Find more information about each industry here 
Major Industries in Mexico
Many industries are moving their manufacturing to Mexico, though the most prominent industries in Mexico are the automotive, aviation and aerospace, medical device, metalworking, apparel and textile, and consumer products industries, which is then exported to mainly to the United States. Mexico has merged to the seventh largest vehicle manufacturer (Nissan, BMW, Audi, Honda, Mazda, Ford, Toyota, Daimler and many more) and the sixth largest auto parts all over the world. They have They steadily increased their volume in production over the last years, thus it does not surprise that 93 out of the top global 100 automotive parts manufacturers operate in Mexico.
Manufacturing in the country continues to grow and Mexico remains the 12th largest exporter in the world. Major manufacturing industries in Mexico include automobiles, aviation, apparel and textile, consumer products, and medical devices with raw materials coming from the US, China, Japan, Germany, and South Korea among others.
In 2023, Mexico's exports generated a total revenue of $608 billion USD, with Transportation Equipment & Electronics leading at $192 billion (32%), followed by Food at $101 billion (17%). The "Others" category contributed significantly with $180 billion (29%), highlighting diverse export activities. Chemicals and Basic Metals each accounted for $51 billion (8%) and $47 billion (8%), respectively, while Beverages & Tobacco brought in $37 billion (6%). These figures underscore Mexico’s strong industrial and agricultural sectors, reinforcing its position as a key global exporter.
As mentioned above, Mexico's major industry is the automotive sector with several hundreds international companies in Tier 1, 2 & 4 as well as OEM's throughout the country. Indeed, the country has merged to the seventh largest vehicle manufacturer (Nissan, BMW, Audi, Honda, Mazda, Ford, Toyota, Daimler and many more) and the sixth largest auto parts all over the world. They have steadily increased their volume in production over the last years, thus it does not surprise that 93 out of the top global 100 automotive parts manufacturers operate in Mexico.
The use of automation, robotics six sigma, lean, ISO and other industry-specific quality standards are commonplace in Mexico, and many of the leading manufacturing innovations implemented worldwide are coming from factories in Mexico. As they are located in between the South and North America countries and many are bilingual (Spanish and English), they can efficiently distribute with their 64 airports and modern infrastructure the whole continent at low costs.
Foreign Direct Investments 2023
Thanks to the attractive Trade Agreements, the FDI in Mexico reached in 2023 a record high of $36 billion USD, with the manufacturing sector receiving 42% of the total investment. 87% of Mexico's total foreign direct investment (FDI)came from just 10 countries. The United States remained the top investor, contributing 38% of total FDI, or $13.64 billion, although its investment declined by 9% compared to 2022.
