Manufacturer in various industries
Thanks to the diversity of manufacturing in different industries, Mexico offers to any industry attractive and available production places. The top export products by value in 2020 werecars, computers, automotive parts, trucks and crude oil.Those major exports accounted together for 32.8% of overall exports sales from Mexico. Beside manufacturing, Mexico is also attractive acting as IT service center or distribution center. 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
- top export products by value in 2020 were cars (100 billion)
- machinery (incl. computers (75 billion)
- electrical parts (75 billion)
- 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.
Apart from that they also developed themselves as well to a competitive manufacturing partner because of the international agreements, world class infrastructure as well as educated workforce and low costs. 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.
What are the major manufacturing Industries in Mexico?
Many industries are moving their manufacturing to Mexico, though the main 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.
What prodcuts is Mexico known for?
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.
Indeed, Mexico’s top export products by value in 2020 were cars (100 billion), machinery (incl. computers (75 billion), electrical parts (75 billion), and crude oil. Those major exports accounted together for 32.8% of overall exports sales from 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.
Merchandise trade Mexico and United States
Mexico is one of the top trading partners for the USA and now with the USMCA (formerly NAFTA) in place, this pushes more reasons, as why Mexico is a great place to Manufacture. 40% of every dollar that cross the US/MX border for trade is of US origin. Meaning that at least 40% of products crossing the US/MX border has a product/component that was made in the USA, whereas in China, it is only 3-4%. Mexico helps US business grow, and Javid will help your company grow by focusing on what matters most – Production.