Start up manufacturing services in Mexico: Mexico could become manufacturing power in 2020

Start up manufacturing services in Mexico is the eighth country with the largest manufacturing industry in the world and will be, at the request of Chancellor Angela Merkel, the guest country in the 2018 edition of the Hannover Fair, in Germany, considered the largest industry and manufacturing event of the orb More than 100 Mexican companies will be representing the country at the meeting, in which 5.6 million global business contracts are created each year.

The country is facing the opportunity to become a manufacturing power if it manages to rise from today to the trend of Industry 4.0, a term coined precisely by the organizers of this meeting on German soil, in which technology is the axis to strengthen capacity of manufacturing of the companies, considers Marc Siemering, who is vice president of Industry, Energy and Logistics of the German company Deutsche Messe.

We recommend you read: Mexico manufacturing: Ford and Volkswagen, allies in the electric car business

Mexico is the fourth country in the world that most imports industrial robots, according to the World Trade Organization (WTO), but, nevertheless, in the field of cobots (collaborative robots, capable of interacting with human beings in the conference labor), the country is just taking its first steps.

"This industrial transformation that we are experiencing will lead workers to modify their job roles, so they must be prepared to perform in a digitized environment that will be more intense," says the Deutsche Messe director.

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Mexico manufacturing: Ford and Volkswagen, allies in the electric car business

Ford and Volkswagen joined forces on Friday to develop electric cars and automated driving and are evaluating other areas of cooperation, deepening a global alliance to reduce manufacturing costs.

Ford and VW had already begun to cooperate in the area of ​​commercial vehicles as part of their efforts to restructure production and improve sales, in order to meet stricter regulatory standards and market fragmentation.

VW will invest 2.6 billion dollars in the Argo AI, Ford's automated driving project, while the US company will manufacture an electric vehicle using Volkswagen's MEB platform, both companies announced.

"Our global alliance is beginning to show even greater promises and we continue to evaluate other areas in which we could collaborate," said Volkswagen chief executive Herbert Diess.

Ford expects to develop more than 600,000 electric vehicles using components and systems for VW vehicles, which helps both automakers reduce costs. (Report by Edward Taylor. Edited in Spanish by Marion Giraldo)

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automotive manufacturing Mexico: The 5 states with the highest automotive growth

The industrial real estate Mexico from 2012 to 2018, the development of the automotive industry has reported an investment of 13.7 billion dollars (mdd) in the sector, one of the most dynamic in Mexico.

In 24 states of the national territory, 31 industrial plants are located that have state-of-the-art technology and highly qualified personnel, and have become an example worldwide. It is the shoal region that has benefited most from these large investments.

 The site selection in Mexico states that have had greater growth: Puebla, Aguascalientes, Chihuahua, Queretaro and Guanajuato. Throughout this year, these entities have received a significant foreign investment in the automotive issue, according to Carmatch.mx, an online pre-owned car agency.

Puebla

Puebla has always been a key piece for the automotive industry, and this year it has received an investment of 2,958 million dollars, and currently occupies the fourth place as a producer and the third as an exporter nationwide. From January to July 2018, it produced 351,184 units, which represents 1,635 cars more than in 2017. It also generates 6.4% of the national auto parts production.

The Ministry of Economy reported that 1 out of every 4 dollars that arrived in Puebla in the previous semester went to this industry.

Aguascalientes

With an injection of 2,000 million dollars, in Aguascalientes the automotive growth continues, at the beginning of September the expansion of the Bosch auto parts plant was inaugurated, and 16 million dollars have been invested for the manufacture of high-tech brakes. Orlando Ramírez, vice president of the plant in Aguascalientes, said he plans to open the second assembly line planned for 2021.

According to information from Conacyt, work is being carried out on the creation of the Center for Innovation and Technological Transparency for the Development of the Automotive, Autoparts and Electronics Chain, in order to increase the added value of Aguascalientes companies, to improve quality standards and be more attractive to global vehicle assembly chains; which shows that the entity is committed to remain an attractive region for the automotive industry.

Queretaro

The automotive industry's career has also been directed to Querétaro, where the industry has been promoted locally and regionally. It has a national distribution center, seven original equipment manufacturers and four development and research manufacturers, such is the case of Continental Automotive Querétaro, which in May presented its Research, Development and Innovation Center.

Investments representing 2 billion dollars have allowed this sector to generate jobs for 67 thousand people and contribute 25.8% of total exports.


Chihuahua

Chihuahua has 150 automotive companies, and this places it as the first place to generate direct jobs in this area. With investments of 1,468 million dollars, there is a great commitment to introduce innovative technology, such as implementing sensors with Artificial Intelligence. This northern state was the host at the last National Cluster Meeting of the Automotive Industry.

The automotive industry's career has also been directed to Querétaro, with an investment of $ 1,000 million, the industry has been boosted locally and regionally. It has a national distribution center, seven original equipment manufacturers and four development and research manufacturers, such is the case of Continental Automotive Querétaro, which in May presented its Research, Development and Innovation Center.

This sector employs 67,000 people and contributes 25.8% of total exports.

Guanajuato

Guanajuato has received an investment of 677.4 million dollars, this industry represents 17% of the Gross Domestic Product and it is estimated that by 2020 it will become the first place of production of cars nationwide.

It occupies the fourth place in the country in terms of job creation, this entity creates 4,000 new vacancies per month, and one in four belongs to the automotive sector.

The entity's governor, Miguel Márquez Márquez reported that in the last six years they invested 279 companies, which makes this state the most dynamic center of the automotive industry in Latin America.

According to information from the Secretariat of Sustainable Economic Development of Guanajuato, local companies participate in 20% in the manufacture of a motor vehicle; In addition to producing 1 in 5 cars in the country.

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Start up manufacturing services in Mexico: Do you want to create a company in Mexico and you don't know what requirements you need?

Here we will share the 5 basic steps for creating your company anywhere in Mexico. It is easy and simple.

If you have been thinking about creating a company for a long time; you want to undertake a new project; or you want to formalize the business you already have, you must know how to do it legally.

In this regard, we advise you to review our article on the requirements to create a company in Mexico, and thus get out of any doubt. Or if not, schedule a free consultation with our advisors to define the society you need.

Next, we will present the 5 steps to follow to establish a company in Mexico:

Step # 01: Request the denominations from the Ministry of Economy.

The Ministry of Economy (S.E.) is the public entity in charge of approving or rejecting the denominations (name) with which it is desired to establish a company. Therefore, you must approach a notary public who under his signature requests the name with which you want your company to be registered, or otherwise, if you have your electronic signature or e-signature, request it personally in the S.E. and select with which notary you will sign it.

Keep in mind that if there are other companies with a name similar to yours, the success rate decreases, so we recommend requesting 3 to 5 different names to increase the chances of authorization.

Step # 02: Prepare the charter of your company

If you have doubts about which parties are part of this document, we invite you to watch our video tutorial on the charter of a corporation.

Similarly, you should know that preparing these documents should not be done lightly. Therefore, we recommend that the charter be tailored to your business and the needs of the partners that will integrate it. Seeks legal advice from experts in the constitution of various commercial or civil societies.

Step # 03 Obtain your Federal Taxpayers Registry (RFC) before the Tax Administration Service (SAT)

Only in the case of the S.A.S. (simplified joint stock company) where this procedure is carried out on the portal of the Ministry of Economy, the application process for other commercial, civil or special companies, must be carried out at the SAT offices of the town where the company.

If you want to know how to carry out this process and the requirements, read our article "How to register my company.


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The art of finding the right the place to manufacturing in Mexico

Shippers looking to move cargo to, from, or through Mexico will likely face a challenge finding warehouse and logistics space, as vacancy rates in some areas is low even though stock increased by more than 6 percent in 2017 and rental rates rose. Both, clear signs of the heated demand for warehouse space in Mexico. All of this, is forcing manufacturers, logistics providers, and retailers to wait up to eight or more months for new space specially in hot cities like Guadalajara, Mexico City and Monterrey.

The ability to deliver product quickly is a critical component of selecting the site for a warehouse, they need to be located near transportation and have access to airports and seaports in addition to highways. This is why finding the right industrial warehouse in Mexico is key to success and getting it right has become an art. We’ve put together a quick check list of key factors you shouldn’t miss.

1. Availability of skilled labour
2. Labor cost
3. Highway accessibility
4. Occupancy or construction costs
5. Availability of advance IT Services
6. Available and cost of buildings
7. Availability and cost of land
8. Tax exemptions
9. Corporate tax rate
10. Expedited or “fast track” permiting
11. Proximity to major markets
12. Availability of long-term financing
13. Federal, State and local incentives
14. Low union profile
15. Utilities availability and costs
16. Environmental regulations
17. Inbound/outbound shipping costs
18. Proximity to suppliers
19. Raw materials availability
20. Accessibility to major airport and ports

Even though spaces might be limited in some areas, the same tightness has in turn attracted new development, specially newly built industrial parks and warehouses with modern capabilities. Take for example in 2017, American Industries opened the first phase of its planned San Jorge Industrial Park, that will have a capacity for more than 10,000 employees with a total extension of 247 acres, developed in four phases with a combined projection of 30 inventory and BTS buildings.

https://americanindustriessanjorge.com