Appliance Manufacturing in Mexico Reduced Risk. Reduced Cost.
According to information published by the Nuevo León State Appliance Cluster (CLELAC), Mexico is the leading exporter of household appliances in Latin America. Production. Appliance manufacturing in Mexico was valued at US $9.6 billion, and average annual growth of 5.5% has been achieved in recent years.
As of December 2018, the employment of the appliance industry in Mexico reached a level of 161,228 direct formal jobs, an increase of 3.4% compared to the previous year, according to information from the Mexican Institute of Social Security (IMSS).
Mexico manufactures appliances with an average domestic content of more than 60%, which means an injection of more than US $5.7 billion into the domestic economy. The high content of national integration into the appliance manufacturing value chain makes Mexico the ideal region to attract more significant foreign investment or expand operations in the sector.
The infrastructure for appliance manufacturing in Mexico aims to develop companies to help them become more competitive and manage to become strategic suppliers of transnational organizations. It is also essential for the Mexican industry to promote and support adopting new processes and technologies that make the appliance sector in Mexico an international model for efficiency and sustainability.
Appliance manufacturing in Mexico is composed of a total of 78 manufacturers. Their location in the Mexican Republic is as follows:
– Aguascalientes, 1
– Baja California, 4
– Coahuila, 2
– Chihuahua, 2
– Mexico City, 16
– Durango, 1
– Guanajuato, 5
– Hidalgo, 2
– Jalisco, 7
– State of Mexico, 10
– Morelos, 2
– New Lion, 7
– Puebla, 7
– Queretaro, 5
– Tamaulipas, 6
– Yucatan, 1
Meanwhile, a total of 189 companies in Mexico are manufacturers of large home appliances that include refrigerators, freezers, and washing machines and dryers. They are situated in states throughout the country as follows.
– Baja California, 7
– Baja California Sur, 1
– Coahuila, 8
– Chiapas, 3
– Chihuahua, 13
– Mexico City, 26
– Durango, 3
– Guanajuato, 10
– Guerrero, 1
– Jalisco, 22
– State of Mexico, 19
– Michoacán, 4
– Morelos, 5
– New Lion, 20
– Oaxaca, 1
– Puebla, 5
– Queretaro, 12
– Quintana Roo, 1
– San Luis Potosí, 7
– Sinaloa, 3
– Tabasco, 1
– Tamaulipas, 9
– Tlaxcala, 2
– Veracruz, 2
– Yucatan, 2
– Zacatecas, 1
According to CLELAC, projects have been brought to fruition that involve companies operating in different states of the country. This development is because appliance industry suppliers are located where there is a higher concentration of white goods and air conditioning manufacturers. These entities include Mexican states such as Querétaro, Tamaulipas, Chihuahua San Luis Potosí, Guanajuato, and Coahuila.
One of the biggest strengths of the appliance industry in Mexico is that most manufacturers and some of their tier one suppliers have specialized in developing their suppliers locally. Suppliers wishing to integrate into the industry value chain of the appliance industry must comply with the following profile:
– Comply with quality, financial, and code of conduct audits carried out by the client company.
– Have a quality system implemented and executed.
– Have an inventory control system.
– Be registered in the Manufacturing, Maquiladora and Export Services Program (IMMEX).
– Have ISO 9001 or similar quality certifications.
Companies interested in investing in the appliance industry in Mexico should note that CLELAC works on projects that help companies meet or improve the first three points above, considering that quality management is one of the essential elements required to enter and remain a supplier. Companies that meet value chain requirements can participate in an industry that has grown 8% on average during the last five years.
Export and value chain trends in the appliance industry in Mexico
According to government statistics, recent exports generated by the appliance industry are estimated to be valued at more than US $8.7 billion. The primary recipients of these items are the United States, Canada, Colombia, Chile, and Venezuela, and the main exported products include refrigerators, air conditioners, boilers, stoves, among others.
Due to the growth of the appliance industry in Mexico, many companies that make it up are determined to invest in technology to retain their competitive edge in the global marketplace. The companies that make up the nation’s industry cluster are looking for new technologies to be more efficient, mainly in terms of processes.
Many of the new technologies utilized in Mexico’s appliance industry have to do with Industry 4.0, which will help companies deliver their products quicker and with fewer defects. To maintain their market leadership in the industry, Mexico-based appliance manufacturers must adopt new business models that make their workforce more competitive and efficient. In addition to this, they will have to continue to make further investments in technology and processes.
It should be noted that, according to information from Mexican economic sources, the products that are manufactured in the appliance industry in Mexico include: refrigerators, washing machines, tumble dryers, televisions, and microwave ovens, among others. Locally sourced suppliers of inputs or components such as product assembly, stamping, forging, plastics and rubbers, coatings, thermostats, tubes, profiles, machining, metal casting, packaging, and electronics also help the industry to maintain its position of global competitiveness.
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