The Generation and Distribution of Electricity Equipment industry in
Mexico
The generation and distribution (G&D) of electricity equipment industry
is constituted by two segments: electric engines and generators and
electricity distribution and control equipment. The first segment refers
to direct and alternate current generators, universal engines,
rotational converters, electrical transformers and static converters,
among others. The second focuses on electrical devices to connect or
protect electrical circuits, as well as cutting or sectioning devices,
frames, panels, dashboards, etc.
Mexico is the leading producer of G&D of electricity equipment in Latin
America and has positioned itself as one of the main investment
destinations in the industry. In addition, it is the leading supplier to
the US market of energy distribution products, transformers, engines and
generators.
This industry has become stronger. In 2011, the sector's total
production reached 19.374 billion dollars, of which 59.8% is focused on
the electricity distribution and control equipment segment and the rest
in the electric engines and generators segment.
The industry's exports reached 11.815 billion dollars; the main
destination market was the US and the rest was sent to countries such as
Canada, the Netherlands and China, among others.
Some of the most exported products are engines and generators, watt-hour
meters, cables and transformers.
Attraction of Foreign Direct Investment
The manufacturing of G&D of electricity equipment had an accumulated
investment of 5.3190 billion dollars, during the 2000-2011 period. Only
in 2011, the FDI figure was 558 million dollars.
FDI in this sector focused mainly in the states of Chihuahua, Tlaxcala
and Baja California, which combined earned more than 80% of investment
received in Mexico.
Companies established in Mexico
According to INEGI's last census, there are 669 economic units in Mexico
that specialize in the G&D of electric equipment industry; in addition,
the industry has close to 126 thousand employees.
Some of the leading companies in the industry are ABB, Eaton, Furakawa,
ACME, Belden, Cooper, General Electric Company, Hammond, Schneider,
Siemens, Thomas and Betts, Mitsubishi, WEB, etc. They are located mainly
in the Federal District, Nuevo León, Chihuahua, the State of Mexico and
Jalisco.
Strengths of the Industry in Mexico
•Talent. According to ANUIES, there are more than
790 thousand higher education students in engineering and technology
programs, and according with the Ministry of Public Education, 115
thousand students graduate each year from these programs.
•Competitive Costs. According to KPMG, Mexico has
the lowest operating costs in the Americas in processes related to
manufacturing of G&D of electricity equipment.
•Logistics Access. Mexico's closeness to the
North American market has important advantages.
•Supply Capacity. Mexico has the capability to
supply a series of processes used in the G&D of electricity equipment
industry, such as machining, casting, extrusion, assembly, stamping,
plastics injection, aluminum injection, forging, laminating, welding,
boilermaking and thermal surface treatments.