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.

https://www.americanindustriesgroup.com/

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).

https://www.americanindustriesgroup.com/

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)

https://www.americanindustriesgroup.com/

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