The advanced manufacturing sector in Mexico is large. Many multinationals choose to open a production factory in Mexico. In addition, the automotive industry is a promising market in Mexico. Do you want to know why and what opportunities are there for you as a Dutch entrepreneur? On this page you will find everything you need to know about this sector.
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Advanced manufacturing in Mexico
Many companies choose to open a factory in Mexico because of the competitive labor costs. Labor costs are relatively low compared to other locations in the world. Labor costs are currently lower in Mexico than in China. In addition, Mexico has a young and skilled workforce, ranking ninth in terms of the number of graduating engineers worldwide. This facilitates Mexico’s continued shift from a low-tech to a high-tech manufacturing hub.
In addition, Mexico has a very favorable location; it is next to the largest market in the world and gives direct access to the Antlantic and Pacific oceans. This allows the country to trade with the entire world within a short timeframe and at a competitive cost.
Free trade agreements
Mexico participates in several free trade agreements, such as the USMCA, the Mexico-EU free trade agreement, and the Pacific Alliance. The recent signing of the USMCA, the new NAFTA, puts an end to three years of free trade uncertainty. This means that there are now countless opportunities that are particularly interesting in this sector.
The automotive industry also falls within advanced manufacturing. This is a promising sector in Mexico. Globally, Mexico is the 7th largest light vehicle manufacturer and the 4th largest car exporter, exporting ± 80% of production. Mexico is the second largest car manufacturer for the US market after Canada. Finally, the country has a very good infrastructure and a historically well developed production culture.
To summarise, these are the reasons why you should go to Mexico if you are active in the advanced manufacturing sector:
- Mexico is a true production hub
- The country is the 7th largest light vehicle manufacturer in the world
- Mexico has a young, affordable and available workforce
- The various free trade agreements between Mexico and the EU (USMCA and other FTAs) make it easy to do business
The NL Business Hub in Mexico
NL Business Hubs provide operational support to Dutch companies in entering an international market and open up a strong business and social network of local contacts.
Holland House Mexico is the NL Business Hub in Mexico. Do you want to know what Holland House Mexico can do for you locally? On our website you will find more information about this hub and how to get in touch with them.