Mexico manufacturing generates three out of every 10 jobs in Jalisco

Maquiladora and manufacturing companies are the main employers of the industrial sector in Jalisco, since around 384 thousand 345 people receive a salary from this branch, according to figures from the Association of Maquiladora and Manufacturing Industries of the West (Index), based on a study released by the Ministry of Economic Development (Sedeco) in 2016.

This figure represents 27.2% of the total jobs generated by the various Industrial Chambers of the State, which means that three out of every 10 jobs in the Jalisco industry belong to manufacturing companies. Of this total number of jobs, 182 thousand are workers in companies with a program for the Promotion of the Manufacturing Industry, Maquiladora and Export Services (Immex). These employees earn an average of 12,500 pesos per month, 30% more than a worker who does not work in these companies.

Federico Chávez, president of Index Occidente, also announced that the maquiladoras established in Jalisco represent 43% of exports (18 thousand 800 million dollars), and 40% of imports (30 thousand 494 million dollars), in addition to receiving 36% of the State's Direct Foreign Investment, according to the data of the Sedeco study.

They ask for greater security

Security is the primary issue to be resolved by the current and the next governor of Jalisco, Chávez considered, speaking about the fundamental issues that candidates for the state Executive Power must resolve.

Another important issue for the State, according to Index Occidente, is to improve mobility, in addition to making the second runway at the Guadalajara International Airport

Chávez also asked to give continuity to the public policies implemented by the Ministry of Innovation, Science and Technology (SICYT) headed by Jaime Reyes, who, according to Index, has played a fundamental role in promoting the electronics industry in Jalisco.

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automotive industry Mexico: Jalisco's manufacturing industries will be the first to return, anticipates governor

 

Companies in the secondary sector (manufacturing) and agroindustries, which stopped their production due to the health contingency, will be among the first to operate again in the State; the governor advanced. He reported that no later than Thursday he will present the details of the state plan to reactivate the economic sectors and anticipated that the activities will return to adapt to protocols and prevention measures.

The head of the state Executive Branch explained that the plan includes a calendar with different phases that will define how and when the various sectors of the state economy will operate again.

We are not discovering the black thread either, it has been said that for the greater margin of supervision of its operation, one has to start with the industry, the secondary sector, and the primary sector as well, the agro-industry and the countryside; they are going to have important advances. What is going to take the longest is the issue of tourism, paradoxically one of the sectors in which we are going to have more economic effects is the one that will take the longest to be able to reactivate ”, he explained.

The state president explained that as part of that plan it is contemplated to apply special measures for mothers and fathers, with children of school age, because the minors will remain at home with the determination to close the school year remotely. He added that they also review the issue of nurseries and how they will operate again.

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Industrial real estate Mexico: manufacturing in Mexico begins to grow

The Governor of the State, Enrique Alfaro Ramírez, met with executives of transnational manufacturing companies with the aim of proposing scenarios that contribute to lessen the economic impact in this sector that, as a consequence of the coronavirus pandemic, could be generated in the event of a total stoppage of activities.



In Jalisco alone, this sector generates more than 600 thousand direct and indirect jobs and has a record of 396 companies operating in the National Council of the Maquiladora and Export Manufacturing Industry (INDEX), and the president referred to the need to generate a joint action proposal, so it was agreed to establish a working table between the State Government and company managers.


During the meeting held at Casa Jalisco, César Castro Rodríguez, national president of INDEX Occidente, stressed that this sector represents 11 percent of formal employment before the IMSS in Jalisco, 44 ​​percent of the transformation industry in Jalisco, represents 61 percent of state exports, and for this year, despite the pandemic, an investment of 142 million dollars is projected.

Government and manufacturers seek to lower economic impact by Covid 19.


                             

Jalisco's manufacturing sector generates more than 600 thousand jobs in the entity where there is a record of 396 companies affiliated to the National Council of the Maquiladora and Export Manufacturing Industry (INDEX), who held a meeting with the governor this Monday morning, Enrique Alfaro Ramírez to search for the common strategy to lessen the economic damages caused by the Covid 19. Alfaro Ramírez explained the measure of the Emergency Button as an instrument that would be applied in case the indicator of hospital occupation reaches 50 percent or is a weekly record of 400 infections per million inhabitants.

However, he said that at this time the level of hospitalization remains stable and the rate of infections remains within the established range. Through a statement, the State Government indicated that said meeting was with the objective of generating a proposal for joint action, so it was agreed to establish a working table with the managers of IBM, Sanmina, Continental, Flex, Foxconn, Latam, Jabil, Plexus, ZF, as well as the INDEX, INDEX DE OCCIDENTE, CANIETI and CADELEC. During the meeting held at Casa Jalisco, César Castro Rodríguez, national president of INDEX Occidente, stressed that this sector represents 11 percent of formal employment before the IMSS in Jalisco, 44 ​​percent of the transformation industry in Jalisco, represents 61 percent of state exports, and this year, despite the pandemic, an investment of 142 million dollars is projected.

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The Aerospace Manufacturing Mexico and the take-off of productivity.

The aerospace manufacturing Mexico has also discovered the advantages that Mexico has in today's global manufacturing landscape: a convenient geographical position, numerous free trade agreements, a promising demographic bonus and a highly skilled workforce. In this text the opportunities and challenges that this sector has in our country are broken down.

Mexico has managed to consolidate itself as one of the main manufacturing centers in the Western Hemisphere thanks to a series of comparative advantages with which it has as its privileged geographical position, an open economy with an important network of trade agreements, a large population composed mostly of young people of working age, a competitive and skilled workforce, abundant energy and natural resources, as well as a worldwide recognized macroeconomic stability.

Thanks to this, in 2014 our manufacturing exports reached 337 thousand 289 million dollars and represented 85% of the total exports of that year. In this sense, our country exports 65% more manufactures than all of Latin America together and participates in several sophisticated sectors such as automotive and electronics. In addition, Mexico is a growing player worldwide in the aerospace sector.

Currently, the global aerospace industry is going through one of its best moments, which constitutes one of the most relevant opportunities for Mexico in order to increase the national content of its exports and thereby generate the quality jobs that thousands of Mexicans require .

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

Global overview of the aerospace sector

Globally, one of the most dynamic and fastest growing industries is aerospace. According to the International Air Transport Association, in 2016 there will be around 3,600 million plane trips in the world, about 800 million more than those registered in 2011. According to this Association, between 2012 and 2016, the Passenger traffic on flights will grow on average 5.3% per year. On the other hand, the international cargo service will grow on average 3% per year to reach 34.5 million tons in 2016, 4.8 million tons more than in 2011.

By 2032 it is predicted that the fleet of aircraft, both passenger and cargo with a capacity of ten tons, will be 36,556 aircraft, which implies a significant increase if it is considered that there are currently about 18 thousand ships in commercial service.

Single-aisle passenger aircraft, commonly used by low-cost airlines, represent the largest segment of new orders and in the next 20 years are expected

20,240 deliveries of this type of aircraft. For the same period, it is projected that the demand for double-aisle aircraft will amount to 6,780 new orders, while those for cargo will increase to 500.

Mexico exports 65% more manufactures than all of Latin America together and participates in several sophisticated sectors such as automotive and electronics

Also, the companies producing the sector seek to reduce fuel consumption in new aircraft, in order to meet the demands of operators, which must lower their costs in the face of growing competition between airlines.

Within this context, Mexico is positioning itself globally as an important player for the main aerospace companies that must increase their competitiveness. This sector represents one of the main opportunities that our country has to take advantage of its comparative advantages and its important industrial development in order to increase the national content of our exports, generate more and better jobs, and increase the country's level of productivity.

Aerospace sector in Mexico

Currently, in Mexico there are more than 300 companies in the aerospace sector. Of these 80% are manufacturing, while 20% offer design and engineering services, as well as maintenance, repair and operations (MRO).

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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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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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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.

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Automotive industry Mexico: The PSA Group will electrify its entire fleet of vehicles

The automotive industry in Mexico will bet heavily on alternative energies, as announced by the PSA Group which will start in 2019 with the launch of the electrified versions of all commercial vehicles of the Citroën and Peugeot brands and the update of the two electric vans that already are in the market: Berlingo and Partner.

PSA Group, the French conglomerate that brings together DS, Peugeot, Citroën, Opel and Vauxhall, announced the acceleration of its electrification process of the range. Thus, all the models developed from 2019 onwards will have their electrified counterpart, be it hybrid or entirely electric.

The group says that in two years they will launch 15 new electrified models, of which eight will be plug-in hybrids, such as the DS 7 Crossback E-Tense 4x4, and the plug-in versions of the Peugeot 3008 or the Citroën C5 Aircross. The other seven models will be 100% electric, and among them we can highlight the DS 3 Crossback E-Tense.

In the year 2025, the PSA Group will offer electric versions of its entire range of commercial vehicles, both under the Citroën brand and under the Peugeot brand. The strategy includes the electrification of both the range of medium-sized vans, Jumpy and Expert, as well as the superior size Jumper and Boxer, and the updating of the electric versions of the Berlingo and Partner - already available on the market.

For the PSA Group, the electrification strategy of the commercial range involves the conversion of its current models to electric versions ahead of conventional and plug-in hybrids, according to Philippe Narbeburu, vice president of PSA's business unit. "The objective in terms of autonomy is to cover 85% of the uses required by our customers," he added. For small utility companies that travel greater distances reserves the technology of soft hybridization based on a 48 volt system, more affordable and better adapted to these jobs, according to PSA.

This plan is based on the use of two platforms, the CMP and the EMP2. According to reports from France, these two architectures will be able to integrate any of the power trains that are needed, whether electric, hybrid or internal combustion.

The most important thing is that this platform allows the construction of vehicles on the same production lines, with the CMP covering the smaller models and the EMP2 for SUVs, sedans and coupes. By 2025, as anticipated with DS, Grupo PSA wants a 100% electric portfolio for its brands.

As you can see, the automotive manufacturing in Mexico is becoming an important industry with new technologies and investments to offer consumers new alternatives that are more economical and above all that are sustainable with the planet. If you want to know more information about manufacturing or the automotive industry in Mexico, you can visit the next website: http://www.americanindustriesgroup.com

Source: Auto Cosmos, Hibridos y Electricos