Mexico’s top export products by value in 2020 were cars, computers, automotive parts or accessories, trucks and crude oil. Those major exports accounted together for 32.8% of overall exports sales from Mexico.
1. Manufacturing in diverse industries
2. Mexico Automotive Industry
Mexico’s top export products by value in 2020 were cars, computers, automotive parts or accessories, trucks and crude oil. Those major exports accounted together for 32.8% of overall exports sales from Mexico.
1. Major Manufacturing Industries in Mexico
Many industries are moving their manufacturing to Mexico, though the most prominent industries in Mexico are the automotive, aviation and aerospace, medical device, metalworking, apparel and textile, and consumer products industries.
The use of automation, robotics six sigma, lean, ISO and other industry-specific quality standards are commonplace in Mexico, and many of the leading manufacturing innovations implemented worldwide are coming from factories in Mexico.
Mexico's quality standards are set very high - not without reasons renowned brands like BMW, Nissan or Audi manufacture their cars there.
Mexico’s top export products by value in 2020 were cars (100 billion), machinery (incl. computers (75 billion), electrical parts (75 billion), and crude oil. Those major exports accounted together for 32.8% of overall exports sales from Mexico.
Mexico’s top export products by value in 2020 were cars (100 billion), machinery (incl. computers (75 billion), electrical parts (75 billion), and crude oil. Those major exports accounted together for 32.8% of overall exports sales from Mexico.
Mexico is not only attractive to manufacture products but also acting as IT service center or distribution center. Thanks to its proximity to the United States, many Mexicans have a high IT knowledge and are graduated in English Speaking universities, thus they also take advantage to offer IT Services like Call Centers.
As they are located in between the South and North America countries and many are bilingual (Spanish and English), they can efficiently distribute with their 64 airports and modern infrastructure the whole continent at low costs.
Aeronautics
Apparel
Appliances
Assembling
Cars
Clean Energy
Consumer Products
Electronics
Furnitures
Industrial
Metal Mechanic
Packaging
Textiles
Medical Devices
Information Technology
Contact Us to analyse your industry!
Regardless of your company’s size, industry or level of sophistication, we help you to determine if manufacturing in We Mexico is a good fit for your organization through the development of a detailed financial, operational and logistical feasibility study.
Contact UsContact Us to analyse your industry!
Regardless of your company’s size, industry or level of sophistication, we help you to determine if manufacturing in We Mexico is a good fit for your organization through the development of a detailed financial, operational and logistical feasibility study.
Contact Us2. Mexico Automotive Industry
Mexico is well-know of its large manufacturing productions in cars, electronic parts, aerospace crafts and machinery and appliances, which is then exported to mainly to the United States.
They have merged to the seventh largest vehicle manufacturer (BMW, Audi, Nissan, Honda, Mazda, Ford, Toyota, Daimler and many more) and the sixth largest auto parts all over the world. They have steadily increased their volume in production over the last years, thus it does not surprise that 93 out of the top global 100 automotive parts manufacturers operate in Mexico.
It is the South America’s largest automotive manufacturer with an annual production of close to 4,000,000 units and around 80% of these units are exported. Globally, Mexico is now the fourth largest producers of automobiles in the world.
93 out of the top global 100 automotive parts manufacturers operate in Mexico
93 out of the top global 100 automotive parts manufacturers operate in Mexico
Mexico is well-know of its large manufacturing productions in cars, electronic parts, aerospace crafts and machinery and appliances, which is then exported to mainly to the United States.
They have merged to the seventh largest vehicle manufacturer (BMW, Audi, Nissan, Honda, Mazda, Ford, Toyota, Daimler and many more) and the sixth largest auto parts all over the world. They have steadily increased their volume in production over the last years, thus it does not surprise that 93 out of the top global 100 automotive parts manufacturers operate in Mexico.
It is the South America’s largest automotive manufacturer with an annual production of close to 4,000,000 units and around 80% of these units are exported. Globally, Mexico is now the fourth largest producers of automobiles in the world.
3. Latest Information Technology in Mexico
The IT industry is pulling more than US$12 billion a year with around 4,000 companies across the country contributing to the industry.
Mexico’s information technology (IT) sector is well established. Due to Mexico’s proximity to the US, it has made manufacturers shore operations to the country to cater to US demand. Conglomerates such as GE, IBM, Oracle, and Intel have several offices, HR functions, and innovation centers in Mexico. The industry is said to be pulling more than US$12 billion a year with around 4,000 companies across the country contributing to the industry.
Major IT industrial sectors are in the capital Mexico City, Guadalajara and Monterrey, whereas the state Jalisco is the home for 40 percent of Mexico’s IT industry and a well-educated workforce.
Furthermore, there are 16 technology institutes and 12 universities with more than 8,000 technical and engineering students graduating every year from the state. The government has made the software sector a priority and has established the Program for the Development of the Software Industry (PROSOFT) initiative.
Through the initiative, the Mexican government wants to reach a production level of 5 billion dollar of software development and become a leader in Latin America.
Mexico belongs to the top 3 offshoring option in IT
Due to the investment of the Mexican government and growing infrastructure, more development talent is emerging in Mexico at lower salary rates than their American counterparts. Indeed, graduates in Mexico earn four times less than people from the United States who do not even have a degree.
The Mexican IT is globally on number 3 for offshoring options with the tech industry there expanding at 3x the global average.
4. Aviation and Aerospace Manufacturing Industry in Mexico
In the late sixties, the Mexican Government’s Maquiladora Export Program (now known as the IMMEX Program) began laying the foundation for this industry. It is mostly responsible for expanding industrialization, employment opportunities and most importantly, allowing the importation of goods to be assembled and exported without import duties or taxes.
Aerospace companies have taken advantage of these manufacturing opportunities in Mexico.
The aerospace manufacturing industry in Mexico is a top performing sector and an excellent example of overall growth:
- From 2013 – 2015, there was a reported 20 percent average annual export growth
- This led to 63,000 jobs created in 2016
- Accumulated direct foreign investment from 2007 – 2017 is upward towards $6 billion
- Aerospace firms grew from 112 in 2009 to 330 in 2017
Even though the aerospace manufacturing industry in Mexico is relatively young compared to other markets, it is growing exponentially. Thus, the Mexican Government launched various programs to create employment opportunities, including business incentives, new workforce training programs, and new universities.
The Mexico aerospace is the 14th largest supplier globally and more than 350 aerospace companies have an annual export of $9.5 billion.
4. Aviation and Aerospace Manufacturing Industry in Mexico
The Mexico aerospace is the 14th largest supplier globally and more than 350 aerospace companies have an annual export of $9.5 billion.
In the late sixties, the Mexican Government’s Maquiladora Export Program (now known as the IMMEX Program) began laying the foundation for this industry. It is mostly responsible for expanding industrialization, employment opportunities and most importantly, allowing the importation of goods to be assembled and exported without import duties or taxes.
Aerospace companies have taken advantage of these manufacturing opportunities in Mexico.
The aerospace manufacturing industry in Mexico is a top performing sector and an excellent example of overall growth:
- From 2013 – 2015, there was a reported 20 percent average annual export growth
- This led to 63,000 jobs created in 2016
- Accumulated direct foreign investment from 2007 – 2017 is upward towards $6 billion
- Aerospace firms grew from 112 in 2009 to 330 in 2017
Even though the aerospace manufacturing industry in Mexico is relatively young compared to other markets, it is growing exponentially. Thus, the Mexican Government launched various programs to create employment opportunities, including business incentives, new workforce training programs, and new universities.
5. Medical Device Manufacturing Industry
The medical device manufacturing industry in Mexico continues to experience favorable growth. Over the past decades, some ov the over 600 medical device manufacturers have leveraged nearshore operations along the U.S./Mexico border regions, which is responsible for having nearly 160,000 workforce and over $9.05 billion annually in exports.
Factors that contribute to this industry’s growth include:
- A highly-trained and educated workforce
- Academic, government and private sector collaborations expand device manufacturing and improve efficiency
- Proximity to the U.S. provides several cost-effective benefits over other global locations like China
6. Apparel & Textile Manufacturing Industry
As Mexico’s fourth-largest manufacturing industry, the apparel/clothing, and textile manufacturing, accounts for 3.7% (1.3% in textiles and 2.4% in apparel) of Mexico’s manufacturing GDP.
The U.S. Department of Commerce has reported that textile manufacturers have modernized their facilities and are looking to expand into automotive and industrial fabrics
Volkswagen, Mercedes Benz, BMW and others are getting automobile filters, airbags, seat covers, doors, bands and cables manufactured by upgraded textile facilities in Puebla, Mexico
As Mexico’s fourth-largest manufacturing industry, the apparel/clothing, and textile manufacturing, accounts for 3.7% (1.3% in textiles and 2.4% in apparel) of Mexico’s manufacturing GDP.
The U.S. Department of Commerce has reported that textile manufacturers have modernized their facilities and are looking to expand into automotive and industrial fabrics
Volkswagen, Mercedes Benz, BMW and others are getting automobile filters, airbags, seat covers, doors, bands and cables manufactured by upgraded textile facilities in Puebla, Mexico
7. Consumer Product Manufacturing
Mexico is not just a simple assembly and low-tech manufacturing country but is also attracting large, multinational manufacturers from every industry.
Many consumer products are being manufactured in Mexico now as well. As manufacturing costs continue to rise in China, manufacturers are moving their operations to Mexico for a variety of cost-efficient reasons.
Consumer product manufacturers have also seen the value in establishing their productions in Mexico. Thanks to the IMMEX Program (formerly known as the Maquiladora Program) – which allows for duty-free importation of raw materials – companies can produce to very competitive prices. In addition, Electronic manufacturing of consumer goods is increasing due to the availability of engineers and design specialists.
Mexico is not just a simple assembly and low-tech manufacturing country but is also attracting large, multinational manufacturers from every industry. Industries in Mexico now vary across all sectors of business. And there is a huge potential market just beside Mexico; in 2015, the U.S. Bureau of Labor Standards (BLS) reported that the U.S. consumer goods market was the largest in the world at $446 billion
by VOCSO
