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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.

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