Key points of the Mexico’s manufacturing industry
The manufacturing industry in Mexico contributed around 17% of GDP and generated millions of jobs in 2020, remarkable participation in the national economy against a backdrop in which many sectors recorded historic losses.
Given the nature of its activity, described as the transformation of raw materials into final goods, the manufacturing industry did not experience the slump suffered by other industries. It even boosted its operations due to the high demand for consumer goods.
At the same time, with the progress in the pandemic’s control and the economic recovery in the United States, the outlook for the country’s manufacturing industries is encouraging, as it is believed that this will drive the domestic products’ consumption.
Types of manufacturing industries
- Food and beverages.
- Autoparts.
- Textile production.
- Paper production.
- Mining manufacturing.
- Chemical and pharmaceutical production.
- Machinery and electronic equipment.
- Metal utensils, plastics, and wood.
Mexico’s manufacturing industry characteristics
- In several Mexican states, this industry ranks first by contributing to GDP. The list includes Coahuila, Chihuahua, Queretaro, the State of Mexico, Aguascalientes, Guanajuato, Puebla, and San Luis Potosi.
- Its contribution has remained stable throughout the 21st century, accounting for between 15% and 18% of GDP each year.
- Some of the reasons for its attractiveness to the outside world include its low-cost and qualified labor force, and the modernization that the transformation processes have undergone in recent decades.
- Professionals in charge of operations are distinguished by their high specialization level, being one of the best-remunerated sectors in the engineering occupational field.
Manufacturing industry goals in 2022
As recommended by experts, some of the aspects to be worked on this year include those listed below:
- Strengthen collaborative relationships between government, industry, and academic institutions to continue promoting specialization.
- Commit to innovation through technologies such as Big Data, IoT, and Cloud Computing.
- Search for flexible financing programs between government and commercial banking.
Despite the fourth wave of COVID-19, the nature of the country’s manufacturing industry will allow the sector to grow, as well as the construction, lease, and commercialization of industrial buildings, by attracting national and foreign investment.
The economic performance of the state of Nuevo Leon, where the city of Monterrey alone has 935,000 m²4 in industrial buildings, is an example of these prospects. Other cases are Mexico City, with 742,000 m², and Guadalajara, with 435,000 m², according to data from the consulting firm Solili.
In line with these figures, the Mexican industry closed 2021 with growing inventories, rising prices, and healthy vacancy figures, which were replicated in the industrial real estate sector, with demand for space by different types of manufacturing industries.At Advance Real Estate, we join this expansion by providing companies in the manufacturing sector with industrial buildings adapted to their current needs and future growth plans.
Information source:
- www.americanexpress.com/es-mx/…/industria-manufacturera-clave-para-recuperar-empleos
- unea.edu.mx/blog/…/industria-manufacturera-en-mexico
- www.milenio.com/negocios/cuarta-ola-covid-frenara-inversion-naves-industriales-nl
- www.solili.mx
- mitsloan.mit.edu
