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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Mexico Manufacturing Today: Re-Opening of Essential Activities

Despite quarantine and stay-at-home measures still in place in Mexico and across the globe aimed at containing the spread of the coronavirus pandemic, plans are being carried out to gradually reopen several key areas of industry in accordance with strict protocols, with a priority placed on activities deemed as essential. Though governments across the world have varying definitions of what is considered as “essential,” as well as different restrictions on commerce, and a wide range of requirements in place in the face of constantly-changing health situations, they are all developing and implementing new strategies to resume economic activities in phases, and with this, begin to mitigate the effects of the pandemic on industry, national and international economies, and global supply chains.  

 In Mexico, with increasing concern regarding the impacts of the executive order in effect since March 24 shutting down all non-essential activities on international companies in Mexico, as well as its business partners in the US and across the globe, especially the automotive industry Mexico, the government has recently decided to expand its definition of essential activities to include the automotive, construction and mining sectors. This means that as of May 18, these businesses are allowed to partially reopen to begin developing and implementing safety and health measures that will allow them to fully reopen as of June 1. It is important to keep in mind that this information, and all changes to the definition of essential service and any industry-specific restrictions, depends on both the health situation in each area of Mexico, as well as market and supply chain demands, and as such, are subject to change at any time.

 Prior to this, and similar to the US, Canada, and other countries, only activities and services related to the operations of infrastructure (tollway operation and road maintenance), transportation services (air, rail, maritime, port and federal road transportation), communication, courier and post services, healthcare and paramedic services, supermarkets convenience stores, gas stations, hardware stores, construction (in some areas only for critical projects), and logistics and government social programs, were deemed as essential, and therefore allowed to continue operating. All other companies were required to either allow their employees to work remotely when possible, or place them on paid leave until restrictions are lifted.

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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Mexico manufacturing: Steps to invest in Mexico.

Basic considerations for investing

Obtain a VISA:

Responsible authority: National Institute of Migration. Ministry of the Interior.

It requires a visa to conduct business activities in Mexico that foreigner who enters the national territory in order to learn about different investment alternatives, make a direct investment or supervise it, represent a foreign company, or make business transactions. The General Population Law and its Regulation are the ones that regulate in Mexico in this matter.

The General requirements:

Official Format of Immigration Procedure Application, duly answered and signed in original and copy.

Copy and, where appropriate, original for collation of all the pages of the valid passport of the foreigner.

In the event that the interested party carries out the procedure through a proxy or a legal representative, he / she must prove such character with power in his / her favor granted by the foreigner, and a copy of a valid official identification that contains a photograph and signature of the attorney-in-fact or legal representative, as appropriate. procedure must be done before the National Institute of Migration. The maximum resolution time is 35 calendar days.

How to open a business in Mexico?

Regulation and Registration of Foreign Investment:

Responsible authority: Directorate General of Foreign Investment (DGIE). Ministry of Economy.

The Foreign Investment Law establishes that foreign investment may participate in any proportion of the capital stock of Mexican companies, acquire fixed assets, enter new fields of economic activity or manufacture new lines of products, open and operate establishments, and expand or relocate those already existing, except for the exceptions expressly mentioned in said law.

Foreign Investment Law (LIE):

The National Registry of Foreign Investments (RNIE) is the area of ​​the Federal Government before which foreign investments that arrive in our country are registered.

The Foreign Investment Law establishes the various subjects of registration before the RNIE. On the other hand, the Regulation of the Law of Foreign Investment and of the National Registry of Foreign Investments indicates the procedure to carry out the corresponding procedures.

All these procedures can save them with American Industries since they take care of those bureaucratic paperwork and help you to promote the company that you want to make known to

 the world

Expand your business in Mexico and make it known to the world, with american industries we assure you that you can do it

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Automotive industry Mexico 2019

The automotive sales ended with the negative streak that was registered in the previous months, in January 2019. The sales of light vehicles in the domestic market grew 1.78% in annual comparison. During the first month of the year, the industry sold 111,212 cars; Nissan continues to lead domestic sales.

The upturn in sales is explained by the significant growth of units sold by General Motors (106.9%), a figure that responds to an effect on the statistic resistance of the brand in January last year.

In addition to sales, production and export of automobiles in Mexico. In relation to January of last year, total production increased 9.85% and exports grew 4.85%, according to figures reported by the AMIA (Mexican Association of the Automotive Industry).

In the first month of 2019 there were 333,677 vehicles in the interior of the country and the trips abroad amounted to 242,299 units. The American General Motors, which has Chevrolet, GMC, Buick and Cadillac, led during this period the production and automotive exports.

The exceptions

Despite the positive result for the automotive industry on a national scale, some brands fail to recover in terms of their sales within the country. Nissan, the line that leads the Mexican market, once again recorded a drop in sales, compared to January this year sold 11.7% less.

The most pronounced fall was recorded by Smart (81.0%), followed by Alfa Romeo (46.2%), Audi (32.2%), Infiniti (30.7%), Lincoln (25.9%), Ford Motor (21.8%), Chrysler (17.0%). ), Volkswagen (12.5%), Fiat (5.0%), MINI and Toyota (3.3%) and Mercedes Benz (1.5%).

Regarding the production of automobiles in Mexico, only four companies registered negative results. Mazda topped the list with a level of cars produced 63.4% lower than that recorded in January last year. Nissan, Chrysler and KIA recorded falls of 9.9, 3.3 and 0.4% respectively in their production.

The effects on the production of these lines were reflected in their exports. The departures of Mazda vehicles decreased 53.8% in annual comparison, Chrysler's dropped by 43.5%, for Nissan the losses were 8.3% and for KIA by 3.1%, according to what was reported by the AMIA.

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