Mexico’s Industry Reaches the Green Light

According to the latest report from the Mexican Federal Government, 19 of the 32 states that make up the country are already in the green light. In other words, almost 90% of the Mexican territory has returned to industrial normality, taking into account that the green and yellow lights allow for normality in manufacturing facilities. Now 60% of the Mexican territory has a green light, 28% has a yellow light, 12% has an orange light and no state in Mexico has a red light.

Since June 2020, the Mexican government, through the Health Council, determined that the manufacture of transportation equipment is considered an essential activity and, therefore, assemblers and manufacturers of auto parts and aerospace components could gradually open their manufacturing operations.

Thus, companies belonging to the Transportation Equipment category could restart activities as of June 1, 2020. Among the categories that belong to this item are: car and truck manufacturing, body and trailer manufacturing, motor vehicle parts manufacturing, aerospace equipment manufacturing, railroad equipment manufacturing and ship manufacturing.

At this time, the good news is that 88% of the Mexican territory is already operating at 100% and it is expected that in the next few months, another 12% of the territory will be in the same conditions. Since the pandemic began, the Mexican government designed the "traffic light system" to regulate industrial activity with four colors that allow work activities as follows:

• Red: essential activities such as mining, construction and transportation manufacturing industry.
• Orange: reduced production staffs.
• Yellow and Green: new normality with production at 100%.