Electrical-Electronic industry in Mexico
The electrical-electronics industry is the country’s main exporting
productive activity, since it accounted for more than 30 percent of
total exports in 2008.
The industry contributed around 8 percent of manufacturing GDP in 2008.
Mexico is an attractive investment destination in the
electrical-electronics sector. Between 2000 and 2007, foreign investment
in this industry totaled US $ 3.52 billion, which were mainly directed
toward production of high technology television sets, television
decoders and cellular telephones.
Furthermore, during 2008, investment reached US $1.3 billion.
Companies established in Mexico
Mexico has 1,600 industrial plants in this sector, in 2008, which
generated more than 542,000 direct jobs in the same year.
Some of the companies established in the country are:
-
Brightstar
-
Carrier
-
Daewoo
-
Flextronics
-
General Electric
-
Hewlett
|
-
IBM
-
Jabil
-
Koblenz
-
LG
-
Mabe
-
Motorola
|
-
Nokia
-
Osram
-
Panasonic
-
Philips
-
Robert Bosch
-
Samsung
|
-
Sanmina
-
Sharp
-
Siemens
-
Sony
-
Viakon
-
Whirpool
|
Prospects
Exports of electrical equipment and household appliances will continue
to increase, due largely to the competitiveness this industry has
reached, as well as to the consolidation of Mexican in the markets of
the United States, Central and South America.
Over the next few years Mexico’s electronics industry will maintain its
growth, which is mainly supported by the development of products and
inputs with greater added value. This has been achieved as a result of
investment in engineering, design and research.
Industry’s strengths
A country with experience
The first plants in the electrical-electronics industry were established
in Mexico in the late 50s. Nowadays, there are four industrial clusters
in the northern and central regions of the country. For more than five
decades this sector has been providing the following:
-
Excellent technical and administrative capacities.
-
Successful industry-university collaboration in education and training
of technicians and professionals.
-
Business culture similar to that of the United States.
In addition, Mexico offers:
-
Trade liberalization throughout the chain of production, which means
access to inputs at international prices.
-
Logistical advantages derived from its proximity to the North American
market.
A country with qualified labor
-
There are over 750,000 engineering and technology students.
-
Over 90,000 new engineers and technology students graduate each year
from Mexican universities.
-
Mexican universities offer over 900 graduate programs in the areas of
engineering and technology.
A country with low operation costs
According to the “2009 Manufacturing Costs Index” study carried out by
the consulting firm Alix Partners, Mexico is the country with the lowest
manufacturing costs for industrial components among the main emerging
economies (Brazil, China and India) thanks to its attractive exchange
rate, its relatively low transportation costs, among others.
Source: AlixPartners
The “Competitive Alternatives KPMG’s Guide to International Business
Location 2008 Edition” study, carried out by KPMG consulting, in
coordination with Mercer, Colliers International, Economic Research
Institute and Decisio, places Mexico as the number 1 country for the
manufacturing of electronic components and equipment.
Source: Competitive Alternatives 2008, KPMG
