MSC Expo – Business opportunities for the industry in Mexico

During the webinar “New Economic Outlook, New Opportunities for Mexico," organized by MSC Expo, several industry specialists agreed that the region's supply chain presents opportunities in the current scenario. One of these experts is Rene Mendoza, national coordinator of the Industry Supply Chain in Mexico (CAPIM), who spoke about business opportunities for the industry in Mexico. 

Mendoza began by pointing out opportunities stemming from the trade war between the United States and China, saying “The imposition of tariffs has generated positive effects for Mexico such as new investments, reshoring and possible joint ventures between Asian and Mexican companies.”

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Mendoza said it is quite possible China and the United States will establish new tariffs on Malaysia, Vietnam, the Philippines, Indonesia, Japan and Europe, which would translate into more opportunities for the supply chain in Mexico and the region.

The possibility of increasing regional content as a result of T-MEC’s signing, added Mendoza, is another opportunity for the industry because currently North America’s automotive purchases from third countries under NAFTA amount to $85.958 million: “New business opportunities for the automotive sector alone will amount to more than $28,652 million.”

The executive indicated that the engine of economic recovery is therefore Mexican industry: “At MSC Expo there will be a truly impressive number of purchasing companies looking for suppliers, because now it is a necessity since, for example, operating rules are asking companies to do so.”

For his part, Eduardo Medrano, President of the Mexican Association of Mold and Die Manufacturing (AMMMT), described several defining factors for the future of the industry in the region. “These defining factors are pushing OEMs to reorient the supply with a regionalization. Among these defining factors, the T-MEC is a concrete condition for companies that are already established in North America and who must follow the rules of the T-MEC,” said Medrano.

He pointed out U.S. tariffs on China as another important supplier opportunity bond for the region. “Another defining factor is COVID-19, because it eliminates the circulation of personnel and limits commercial exchange due to the fact that health regulation schemes are beginning to restrict companies and we cannot have all the supplies and support we require, because many times we require resources that suppliers in China, India and Europe have,” explained Medrano.

In this sense, he pointed out the industry’s potentially fragile future under a new wave of COVID-19. Medrano pointed out that to reach expectations in the region - especially Mexico - it is necessary to improve the skills of industry personnel, achieve greater efficiency in operations, reduce delivery times, eliminate the technology gap and achieve a mastery of knowledge in a low-cost environment. “MSC Expo provides that opportunity,” said Medrano.

The first MSC Expo, which promises to be the leading event of the Latin American industry supply chain, will take place at the Citibanamex Center in Mexico City from June 22-24, 2021.

MSC Expo is organized by Gardner Business Media (GBM), with the support of Trade Show Consulting (TSC) and the Mexican Industry Supply Chain (CAPIM), renowned organizers of technology and manufacturing events.