Increased Demand For Overseas Suppliers In Mexico
According to data from the Mexican Economic Secretariat, Mexican economy grew by 2.3% in 2016, and the plastics industry increased by 5.7%. As of the end of 2016, the amount of fixed equipment imported by the plastics industry in the country reached US$2.7 billion.
Mexico is the largest importer of plastics and rubber equipment, tools, dies, and industrial molds in the United States. In addition, according to statistics of the U.S. Trade Representative Office, Mexico is the second largest destination for plastics exports in the United States in 2016.
The Mexican plastics industry faces serious challenges to increase profitability. Therefore, Mexican plastics industry companies are doing their best to increase productivity.
According to reports, more and more foreign mold manufacturing companies have set up factories in Mexico to supply products to Mexican customers. However, the main weakness of Mexico is the insufficient supply capacity of high-quality mechanical steel alloys for making molds.
Mexico is the fifth largest exporter of auto parts in the world, and 41% of the products are sold in the United States. The country’s competitive advantage is that the supplier network is clustered around the main manufacturing industries.
The Mexican automotive industry is breaking through its production and export records. Investment in recent years has brought the industry’s production capacity to a peak, and there is no sign of slowing down.
Kia Motors opened a plant near Monterrey, an industrial city in northern Mexico, and Audi also opened a Q5 cross-border plant in central Puebla. BMW, Toyota and a Mercedes-Infiniti joint venture are all building plants in central Mexico.
ANIPAC President Juan Antonio Hernandez Leon said at the opening ceremony of Plastimagen Mexico 2017: “We have created about 265,000 full-time jobs and 550,000 part-time jobs, which shows the prosperity of our industry.”
However, he also admitted that the North American plastics industry is undergoing dramatic changes. He said: “The renegotiation of the North American Free Trade Agreement (NAFTA) is stirring up the situation in this region.”
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