Mexico’s Manufacturing Market Fuels Opportunities and Support for Robotics Industry

In the News
January 24, 2017

Mexico’s manufacturing has made the country one of Latin America’s powerhouses for innovation and technology.

Out of 40 countries, Mexico ranked eighth in the 2016 Global Manufacturing Competitive Index, which is derived from responses by global CEOs asked to rank nations in terms of their current and expected competitiveness.

As automotive, electronics, machinery, appliances, aerospace, and plastics production continues to grow in Mexico, so do the opportunities for U.S. and global robotics and advanced automation system stakeholders. Mexico is ripe for investments in advanced automation, but navigating the cumbersome business process can require significant planning. Good guidance is especially important when first setting up shop in Mexico.

Business Takeaways:

  • Several robotics industry players such as FANUC, KUKA, and ABB already have a significant presence in Mexico, but the increase in manufacturing and the use automaton offer significant investment opportunities.
  • Mexico’s existing liberal trade policies and open economies are favorable for OEMs.
  • Establishing a Mexico manufacturing business requires significant due diligence, patience, and strong legal support. Mexico’s monetary system is primarily digital now, but businesses must be prepared to work through Mexico’s laborious tax-paying system.

To support the proliferation of robotics in Mexico’s manufacturing sector, the Association for Advancing Automation (A3) has launched A3 Mexico. A3 is the umbrella group for Robotic Industries Association (RIA), AIA (Advancing Vision + Imaging), and the Motion Control & Motor Association (MCMA). The entity will operate in Mexico as A3 Holdings LLC.

A3 Mexico seeks to provide the following:

  • Education initiatives
  • Career development
  • Raising industry and technology standards
  • Offer robot installer certification
  • Raising supplier quality to meet increased demand
  • Provide guidance and support for robotics and advanced automation stakeholders coming into Mexico

“We see solid growth in the use of automation and robotics in Mexico, which currently does not have an association that can help with training, guidelines, and overall needed support,” said Jeff Burnstein, A3 president.

Mexico’s manufacturing landscape

As the 11th largest global economy at $2.2 trillion, Mexico is home to more than 20 automotive assembly plants including those operated by BMW, Mercedes, Audi, Ford, Chrysler, and Nissan The country accounted for 3.7 percent share of global vehicle production in 2014.

Between 2002 and 2012, Mexican automotive exports increased by 152 percent, from $27.9 billion to $70.3 billion, and electronics increased by 73 percent, from $43.3 billion to $74.9 billion. This positions Mexico as seventh in...

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