Furniture Manufacturing in Mexico Reduced Risk. Reduced Cost.
THE FURNITURE INDUSTRY IN MEXICO
The furniture industry in Mexico stands out as the world’s fourth-largest exporter of height-adjustable swivel seats and the eighth leading exporter of wooden chairs and seats
The forest-wood-furniture supply and production chains in Mexico have great potential in both the domestic and export markets. Recent information provided by the US magazine Woodworking Network disclosed that the value of the furniture market in the country amounts to approximately US $2.47 billion. This makes it the second most attractive in Latin America. Also, according to Woodworking Network, operating conditions in the furniture industry in Mexico have improved steadily in recent years. This is largely due to expanded foreign and domestic sales and employment numbers.
Although its profile may not be as prominent as other better known Mexican manufacturing sectors such as automotive, aerospace, medical devices, and electronics, the furniture industry in Mexico, since its inception, has been considered one of the largest in Mexico. This is because it is made up of small, medium, and large manufacturing companies located around the Republic. These producers serve both the domestic and export markets. While this sector is often thought of as relating to traditional furniture, increased innovation in modern designs has been present in recent years. This has attracted the attention of foreign investors.
According to data from the Mexican Association of Suppliers of the Wood and Furniture Industry (AMPIMM), the activity that is occurring in this sector of the Mexican economy is one of the most dynamic in the country’s manufacturing industry, as it grows 10% on average per year. In 2019 alone, the economic activity generated by the furniture sector in Mexico was valued at US $2.85 billion.
Mexico participates very proactively in the global furniture market This is attributable to the country’s network of 12 free trade treaties with 52 countries. The result of these commercial relationships is that the furniture industry in Mexico is strengthened and gains momentum in export sales year after year. According to the recent figures that were released by the Woodworking Network’s Almanac, Mexico’s home furnishing exports to the U.S. and Canada have reached the amount of approximately US $1.6 billion annually.
Due to this level of activity, the furniture industry in Mexico stands out as the world’s fourth-largest exporter of adjustable height swivel seats, the eighth leading exporter of wooden chairs and seats, as well as the ninth leading producer of parts and pieces of wood for furniture.
Today, the domestic furniture market is worth approximately US $ 1.9 billion – with an annual growth rate of 3% on average. The sector now employs 100,000 Mexican workers. These conditions represent a great business opportunity for both Mexican and foreign-based companies. Most of the manufacturing activity in the furniture industry in Mexico takes place in the States of Mexico and Jalisco, in particular. While the former accounts for 40% of the sector’s production, the latter is the source 14.1 % of items manufactured in Mexico.
One of the great opportunities presented for the entire value chain of the wood and furniture processing industry lies in the modernization and investment in new technologies and equipment. These developments allow companies in the industry to generate competitive products with global quality.
As a sign of growing opportunities for foreign investment in Mexico’s furniture manufacturing sector, a supplier of the Swedish furniture retailer IKEA has recently set up production operations in Ramos Arizpe, Coahuila. The Polish home furnishings manufacturer, Ikano Industry, occupies approximately 1 million square feet of production space on approximately 193 acres of land. By the second quarter of 2021, the factory is expected to provide over 2,000 new jobs for workers in Ramos Arizpe and the surrounding area.
Contact Prince Manufacturing for information on how to set up a furniture manufacturing facility in Mexico.
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