In December 2018, AMT organized the annual meeting of Mexico´s Manufacturing Processes Advisory Board. It took place at Schneider Electric’s facility in Monterrey. In addition to our host Schneider, also represented were: Case New Holland, Tremec, Paulo, Brembo, Cummins and domestic job shops both from the metal cutting and forming industries. Experts from the die and mold design industry were present, as well as executives from the Mexican Auto Parts Manufacturers Association.
The overall report for 2018 from the industries represented (automotive, agriculture, electrical, aerospace, and job shops) was that the year was not without challenges, but all reported aggressive revenue growth of 20 to 40 percent and expect a strong 2019, as well. In order to accomplish this continued growth, they see companies supplying manufacturing technology to strengthen their local presence in service, applications, and products.
One of the areas that everyone felt was underdeveloped and could use a comprehensive strategy to bring more state-of-the-art technology to is the design and fabrication of dies and molds. The Mexico die and mold market consumes in excess of USD $2.5 billion annually – a very interesting opportunity for our members.
A broad discussion took place regarding the incorporation of the IIoT strategy in the Mexican manufacturing sector. There are currently excellent examples of best practices as we witnessed at the Schneider facility and the various job shops we visited, but the consensus is that the average job shop is still challenged regarding implementation strategies. AMT indicated that they are at the forefront of the initiative to deploy the interconnectivity architecture in Mexico, due to participation on the committees for interconnectivity sponsored by the Nuevo Leon State and the federal government. The board members offered to collaborate and support the initiative with benchmarking visits.
The board members reaffirmed the projection that auto, aerospace and electrical manufacturing in Mexico will continue to grow and expand. Domestic and international markets are proving to be resilient. Manufacturing technology consumption continues to grow and now that the USMCA (NAFTA 2.0) negotiations are closed, everyone from the consumer side felt positive and optimistic about increased value add and complimentary process to reach the new “regional content” definition.
All attendees were surveyed regarding their future needs and the results were quite positive:
Every participant reported a 70 to 80 percent capacity utilization
All indicated their investment plans will exceed those of 2018
50 percent of the participants have a strong and well-developed roadmap to implement interconnectivity or to otherwise embrace the IIoT.
The bulk of the metal cutting respondents indicated there are entertaining additive manufacturing investments.
The average age of their equipment is from eight to 10 years
80 percent of the activities related to corrective maintenance are performed by their own staff. Their expectation is for a better representation from the suppliers to increase investment in technical service.
Mexico continues to be a strong player regarding the consumption of manufacturing technology. In the last seven years USD $14 billion of machinery has been consumed and the trend is sustainable. The manufacturing base continues to strengthen, and the fundamentals are sound. The new president is favoring manufacturing so Mexico can continue to be a successful supplier to the world. If you want to tap into this market with a minimum investment, please contact AMT Mexico by reaching out to cmortera@amtonline.org.
