Why this is important to Wisconsin businesses: Wisconsin companies can supply components and technology to the growing appliance industry in Mexico.
Home appliance manufacturing in Mexico is rising, and much of the increase is centered around the state of Nuevo Leon, in northeast Mexico.
Some of the world’s largest appliance manufacturers have factories in Mexico—including Whirlpool, Electrolux, LG and Mabe—making products such as refrigerators, freezers, dishwashers, ovens and cooktops.
Forty percent of that production is in Nuevo Leon, which is the No. 1 producer of refrigerators and air conditioners in Mexico, providing about 33,000 jobs, FABTECH Mexico said.
Production was expected to show a 15% increase in 2021 over the previous year, even with the impact of the COVID-19 pandemic, according to an article in Modern Machine Shop Mexico.
Baldwin Britton, vice president of the board of directors of the Nuevo Leon Home Appliances Cluster, said growing sentiment to move appliance manufacturing from China to North America has fueled part of that transition. He said several large manufacturers have made significant investments in their operations in Nuevo Leon in the past year, providing new jobs and increasing demand for suppliers.
Mexico is the second-largest exporter of household and electrical appliances to the U.S. Relatively low-cost labor, proximity to the border, and the ability of suppliers to meet just-in-time delivery has allowed companies manufacturing in Mexico to experience significant growth.
Census information released in 2020 showed the total production of household appliances in Mexico is valued at $21.5 billion, an increase of 171% since 2014, according to Tecma companies.
Due to the growth of the appliance industry in Mexico, many companies are looking for new technologies to increase efficiency, which could offer opportunities for expertise from Wisconsin businesses in that field.