Mexico is Home to Global Leaders in Manufacturing

Mexican Manufacturing

Throughout the Americas, Mexico is a leading supplier of products and services. They export mainly to the US and Canada, but also to countries throughout South America. As such, manufacturing has always played a major role in the Mexican economy. However, today, it is more important than ever. According to the CIA, industry makes up 33.1% of Mexico’s GDP.

Leading economists believe Mexico will soon be a power player in global manufacturing and exports. With recent movements, three sectors stand out among the rest.

Bread & Beverage

The food and beverage industry in Mexico is perhaps one of its biggest claims to fame. While Mexican food is a huge part of the country’s cultural identity, we are talking about bottling and bread specifically. FEMSA is the largest manufacturing enterprise in Mexico, and they are responsible for the famous “Mexican Coke” made with real sugar. Thanks to FEMSA, Mexico is the owner of the largest Coca-Cola bottling plant in the world which accounts for more than $17 billion dollars in revenue each year.

BIMBO is the second biggest manufacturer in Mexico. With global dominance in sweet bread, sandwich bread, and hot dog & hamburger buns, BIMBO is the largest bakery manufacturer in the world. In the last few decades, they have formed major partnerships with international enterprises like Coronado, George Weston Limited, Panrico, Weston Foods Inc and Canada Bread allowing them to become leaders in Europe, South America, and Asia.

Automotive Manufacturing

With recent changes in the U.S. administration, one question on the line is whether American car manufacturers will bring their Mexican plants to the United States. Now, automotive manufacturing is one of the most important sectors since it generates 4% of the Gross Domestic Products. The exchange rate makes the labor affordable, and the geographic location of Mexico is ideal for exporting goods. In addition, Mexico has trade agreements that make international commerce easy. These are the benefits that attract many large automotive manufacturers.

In the seventh place of the biggest automobile producers in the world, Mexico is marking a figure of 1.5 million new jobs and a little less than 4 million vehicles produced in the year. With a combined sale of more than $37 billion USD, the leading giants in vehicle production are General Motors, Fiat-Chrysler, and Nissan. Mexico is beginning to recognize brands like Chevrolet, GMC or Cadillac that are located under the matrix of General Motors who in fact has the largest plant in the world outside the United States.

Manufacturing Technology

Mexico has always been a big consumer of technology products, but in the last few years, they have become huge exporters of computers, tablets, and smartphones. The technology sector has made the most rapid growth in recent years with new investment from Samsung. This $300 million USD effort to expand operations in Mexico helped the country to obtain an advantageous position in the global technology market. LG, Panasonic, and other competitors are also well-placed in Mexico, but none are as influential as Samsung.  Samsung is now the eighth largest enterprise in Mexico exceeding annual sales of more the $5 billion USD.

With global dominance in bread, and a rapid advancement in technology, there is no slowing the success of Mexican manufacturing. While politics may pose a threat the automotive industry, the beverage & bread, and technology sectors alone, are enough to make Mexican manufacturing impressive.

This article brought to you by The Cleveland Deburring Machine Company. CDMC can provide a deburring solution for gears, sprockets, aerospace and defense, automotive deburring, power transmission, powdered metals, fluid power and custom deburring applications. Our no-charge application evaluation includes a detailed report and process description in as little as 3 to 5 business days. Contact CDMC today for a deburring machine that’s right for you.

Continue reading »

Changes Are On The Horizon for Manufacturing in Peru

Peru Manufacturing

Manufacturing is Peru’s number one import according to a UPS study. They buy a variety of materials but manufacture primarily for Peruvian purchases with few exports. Despite having an abundance of resources, manufacturing production and exports are not as strong as they should be. This unbalance of imports and exports takes its toll on the economy.

A Year of Recovery

After several years of declining manufacturing, economists project a major recovery. They predict production may increase revenue up to 2.5% this year. Fishing and mining have already provided positive results in the first quarter. According to Industry and Mype deputy minister Juan Carlos Mathews, manufacturing production also increased 1.70% in the first quarter of 2017. Peru’s exports grew 16.4% in this period alone, more than Paraguay (8%), Ecuador (4.7%) and Brazil (3.3%).

This path to recovery had begun in November and December of last year before El Niño Costero phenomenon impeded the progress. In just a short time, manufacturing is recovering again.  Weather permitting, they are expected to gain strength and velocity in the latter part of the year. President of the BCR, Julio Velarde, stated that this year, the mining and hydrocarbons sector would be one of the fastest growing, driven by nonmetallic mining, while non-primary manufacturing would decline by -2.2%.

Technology and Innovation

Perhaps technology and innovation are to thank for the recovering state of Peruvian manufacturing. In a recent study, 83.4% of manufacturers say that they received financial support to innovate their resources. Of the 61% that sought innovation, 56% successfully innovated the processes and products. Only 5% did not actualize change. Of those who attempted innovation, 20.5% focused on food commodities, 13.7% on clothing, and 13.6% in processed metal products. Of the manufacturing companies that managed to innovate, 50.2% said that it did so with technology.

Agriculture Leads the Way

As mentioned before, agriculture is Peru’s biggest export, specifically fish. According to the consultancy PwC, Peru has the highest agricultural production in the world. Each year, the production continues to grow. As a matter of fact, agricultural exports increase about 17% percent each year, doubling every five years. At these rates, agricultural exports are expected to break 7 billion USD this year.

Women Play a Less Active Role

Perhaps focusing on developing the technical skills and leadership of women in manufacturing would help to further fuel the success of the sector. Despite that 66% of Peruvian micro enterprises are led by women, only 24% percent of manufacturing companies are run by women. These numbers are ever more non-proportional for female business owners. Only 6.7% female entrepreneurs work in manufacturing. Of these women in business, 46.7% of them have completed studies.

This article brought to you by The Cleveland Deburring Machine Company. CDMC can provide a deburring solution for gears, sprockets, aerospace and defense, automotive deburring, power transmission, powdered metals, fluid power and custom deburring applications. Our no-charge application evaluation includes a detailed report and process description in as little as 3 to 5 business days. Contact CDMC today for a deburring machine that’s right for you.

 

Continue reading »

Columbia Deserves More Recognition for Manufacturing Than for Sofia Vergara

Columbian manufacturing

Known best for Sofia Vergara and their agricultural exports, Colombia is rarely recognized for their strength in manufacturing. However, with fifteen free trade agreements and an ideal port location, Colombia boasts competitive prices, skilled labor, and governmental support for foreign investment in manufacturing.

Global Fashion Impact

Textiles are positioning Colombian fashion as a World Class Industry. Thanks to the Productive Transformation Program, a government entity that works with the private sector to promote Colombian competitiveness and production, Colombia is the world’s third market for highest growth rate in the textile and fashion industry. What started as high-quality corduroy in Medellin has turned the world upside down. Textile imports have grown  15% between 2010 and 2014 to supply growing requirements of the local market and exporting to the United States, Mexico, and Ecuador.

Motorcycles and other Autos

As with many countries in Latin America, motorcycles are a staple in Colombia. They use less gas than other vehicles, are more affordable, and are perfect for weaving through city traffic. Colombia is home to 7 motorcycle plants, and motorcycle production continues to grow on an average of 16% since 2010.

Colombia does not just produce motos; they are also a large vehicle producer in Latin America with more than 130 thousand units per year. Cars, trucks, vans, and SUVs–increased financial stability and the growth of the middle class across Latin America fuel this growing manufacturing industry. Chevy, Hyundai, Kia, Renault, and even Ford have plants there. The primary importers of Colombian automotive products are Mexico, Peru, Ecuador, and Chile.

Constructing the Future

The construction industry in Colombia has grown more than any other sector; this includes the construction materials for buildings and civil works. With a recent increase in housing and infrastructure programs as well as political pressure to build roads and renovate ports and airports, we can only expect it to continue to grow.

Colombia’s construction industry is the third largest in Latin America after Brazil and Mexico. The United States, Venezuela, and Panama account for 59.5% of building material exports. The industry is expected to double in value by 2020 and reach US$ 52 billion. Top products include cement, non-metallic minerals, and plaster.

The Driving Force in Cosmetics

As a number five market for cosmetics and toiletries in Latin America, more than 300 companies including Kimberly-Clark, P&G, Unilever, and Avon, produce and package the products here. As another sector overseen by The Productive Transformation Program, the government and private sectors work together to position Colombia as a world leader in the export of cosmetics and toiletries. Now, Colombian cosmetics represent more than 10% of total Latin American exports.

Women are driving this industry. The percentage of female managers here exceed that of Canada, UK, Germany, Japan, and France. Moreover, the cosmetics industry is the second largest female labor market in the region. In the last few years, they have seen a 37% increase in the female workforce compared to 16% growth worldwide.

Biodiversity and Social Progress

As home to the Amazon Rainforest and three mountain ranges, Colombia is rich in natural resources. They have a temperate climate and ports in both the Pacific and Atlantic Oceans. But it is not just rich in biodiversity. It’s also rich in forward moving politics. Their government focuses on strong trade agreements and competitive quality products. And Colombia has made great strides in equal opportunities for women. They are not just exporting women for TV shows; they are making beautiful progress for the world.

 

This article brought to you by The Cleveland Deburring Machine Company. CDMC can provide a deburring solution for gears, sprockets, aerospace and defense, automotive deburring, power transmission, powdered metals, fluid power and custom deburring applications. Our no-charge application evaluation includes a detailed report and process description in as little as 3 to 5 business days. Contact CDMC today for a deburring machine that’s right for you.

Continue reading »