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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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.

Automotive manufacturing Mexico: Quebec's largest trading partner in LATAM, says minister

During her visit to the country between March 12 and 15 of this year, Quebec's Minister of International Relations, Nadine Girault, met with federal government political representatives, including Foreign Secretary Marcelo Ebrard, to define areas of cooperation between the two countries for the next two years, as well as to strengthen the diplomatic relationship of years with the Mexican government.

And it is that only in 2017, Quebec's exports to Mexico manufacturing  amounted to 1,755 million dollars, which makes Mexico the third largest international client in the French-speaking territory and its largest commercial partner in Latin America, according to data shared by the Girault team, recently elected in October 2018.

Currently, the Canadian province and Mexico are subject to 19 international agreements that involve the education, culture and art sector, the care of the environment, commerce, science and technology and for the new government to which Girault belongs, the Mexican and Canadian economies they complement each other and must continue to work together to boost the aerospace, creative and automotive industries.

To date there are 700 companies originating in Quebec that have started business with Mexico and 70 other large companies, also Québec, including Trans-Pro Logistics, Exo-S and Bombardier, installed in the country, which have invested around 6 billion dollars in Mexico, according to figures shared by Minister Girault.

He also took the opportunity to ensure that one of the objectives of his government is to encourage SMEs, both from Quebec and Mexicans, to export more products and in greater quantities, “because large organizations already know how to do it, they have the money, the size , seniority, contacts and support from its investors, ”said Girault.

"The Mexican people are so enthusiastic and eager to do business," said the minister and said that although "it is still too early" to give investment estimates and how many businesses will arrive in Mexico, said our country is and will be part of the five most important priorities for Quebec, and vice versa. ”

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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 growth of automotive industry in Mexico 2018

The automotive industry in Mexico during the first two months of 2018 registered a new record in the production of vehicles with more than 600,000 units armed, it is the largest assembler in Latin America.

During February there were 328,000 units manufactured in Mexico, an increase of 6.2% over the same month last year, which is justified in the double-digit growth of exports (275,000 cars, 11.2% more).

Despite the fact that domestic sales slowed by 7.2%, this did not influence Mexico's return to break a record of car production, according to the Mexican Association of the Automotive Industry (AMIA).

The AMIA, which represents the leading companies in the sector, checked the data for 2017 and noted that last year the "export of light vehicles exceeded the best historical levels for any year", with 3.2 million units. Data from the Mexican automotive sector suggest that, once again, the country will end the year as the leader of Latin America in production, despite the fact that in Brazil, where the economy grew in 2017 for the first time after two years of recession, they begin to feel some improvements.

Automotive manufacturing in February 2018

In February production stood at 213,000 units, 6.2% more than the same month last year, and so far this year the Brazilian factories have already mounted 431,000 units, 15% more in the year-on-year comparison. Sales also point to a slight improvement, with a growth of 19% in the first two months of 2018, still insufficient to rebuild a strategic economic sector that has lost thousands of jobs since 2014.

Since 2014 when Mexico overtook Brazil as the largest vehicle manufacturer in Latin America, this trend has not stopped accelerating, driven by Mexican exports to the United States and Canada.

Last year Mexico exceeded the barrier of 3.7 million cars produced and surpassed for the third consecutive year Brazil as the largest manufacturers in Latin America, with more than one million units compared to the South American giant.

What are the competitive advantages of manufacturing in Mexico?

Offshore manufacturing in Mexico

As you can see, Mexico has many competitive advantages to start up operations. If you would like to know more information, contact American Industries Group they have more than 40 years helping international companies to successful establish their operations.

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Source: Expansion