Manufacturing has been an important part of the development of Mexico’s economy. Mexico is now a supplier of services and products that are mainly exported to the United States and Canada. The industry sector in Mexico represents the 33.1% of the country’s Gross Domestic Product, according to the CIA.
At present, the implementation of manufacturing 4.0 is still at a basic level. However, many global and multi-national companies currently have their production plants there which will bring in the needed investment to the Mexican manufacturing industry.
Mexico is a very active consumer of technology products, with trends indicating an increase in sales of items such as computers, tablets, smartphones and other gadgets. When Samsung decided to make an investment of $300 million to expand their operations in Mexico, the country obtained an advantageous position in global technology. This was one of the most critical investments in the sector. Samsung Mexico is the eighth largest company in the nation regarding billing and sales, which exceed $5 billion annually. Competitors such as LG and Panasonic also have plants in Mexico, but none so influential as Samsung.
Food and Beverage
Food and beverages represent an important part of Mexican finances. The largest manufacturing company in Mexico is FEMSA, which has significant commercial agreements with multinational corporations such as Coca-Cola. FEMSA is responsible for bottling Coca-Cola in Mexico and owns the world’s largest Coca-Cola bottling plant with annual sales of more than 17 billion dollars.
The second largest Mexican company is BIMBO. The globally recognized multinational is one of the biggest bakery manufacturers in the world and is a global leader in several markets. With revenues of more than $12 billion annually. Over the last few decades, many international companies have partnered with BIMBO including Coronado, George Weston Limited, Panrico, Weston Foods Inc and Canada Bread. Thanks to this strategy, the company has absolute dominance in sweet bread, sandwich bread, and hot dog & hamburger buns in many parts of the world.
This is perhaps the most important market in Mexican manufacturing since it generates almost 4% of the GDP. Mexico is in a privileged geographical location, access to inexpensive but excellent labor force, and a variety of favorable treaties and trade agreements. These are exactly the attributes that attract the largest companies in the world.
Almost 4 million cars are produced annually in Mexican plants, which generates more than half a million jobs and places Mexico in seventh place on the list of the largest automobile producers in the world. There are three companies at the forefront of automotive production: General Motors, Fiat-Chrysler, and Nissan, which together bring annual sales of more than $37 billion. General Motors, sells more than $14 billion worth of automobiles from Mexico annually. The General Motors plants in Mexico are the largest production facilities in the world, located outside the United States. Additionally, many of its brands are starting to be considered part of Mexican symbols of the country’s industrialization.
Given recent advancements of companies like BIMBO, Samsung, and General Motors, Mexican manufacturing is booming. While politics in the US may have an impact on the automotive sector, there are few obstacles in the way of growth in the Food and Beverage and Technology sectors.
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