Why this is important to Wisconsin businesses: Partly due to its proximity to the U.S. market, Mexico has become one of the world's most important manufacturing hubs for these industries.
The Mexican electrical products market is dominated by Mexican national and international wholesalers and retailers. The majority of electric products are manufactured in Mexico by local companies or international brands already established in the country, and only a small percentage is imported, mainly from U.S. and China. The greatest demand for electrical products is in construction, telecommunications, the manufacture of appliances and air conditioning.
According to the National Chamber of Electrical Manufacturers, there are an average of 3,500 registered companies per state (both manufacturers and distributors), totaling approximately 100,000 companies in the country.
Due to the levels of investment, exports and employment they generate, the electrical and electronics industries have become strategic sectors of the Mexican economy, positioning the country as an increasingly important player in global markets.
Mexico is one of the most important manufacturing hubs for the global electrical and electronics industries, as well as a leading exporter of products from those sectors, which why it is on its way to becoming a world-class design, research and development center.
Mexico is Latin America’s second-largest producer of household appliances and, according to data from Global Trade Atlas (GTA), is the world’s sixth-largest exporter of household appliances; the largest exporter of flat-screen TVs, refrigerators, and freezers with a separate exterior door; and the fourth-largest exporter of computers.
Several decades of development led to these figures. Today, the market is characterized by consolidation of production and a focus on research and development of new solutions to meet the needs and demands of an evolving global market. Combined with advantages such as competitive production costs and highly skilled human capital, Mexico’s proximity to the U.S., the world’s largest market for the electrical and electronics sectors, has attracted some of the industry’s biggest players to the country.
The electrical and electronics industries are currently facing new challenges. Concerned with environmental matters, consumers around the world are looking for safer and more energy-efficient products. The Mexican industry has always stood out for its capacity to adapt to market needs, and it is likely to meet these new preferences with creative solutions.
Mexico is Latin America’s leading producer of electrical manufacturing equipment. Companies with operations in Mexico include ABB, Eaton, Furakawa, ACME, Belden, Cooper, General Electric, Hammond, Schneider, Siemens, Thomas and Betts, Mitsubishi and WEG. Mexico is the main supplier of products for energy distribution, transformers, engines and generators to the U.S. market. In 2014, this sector’s production was valued at more than $19 billion, and it is expected to grow at an average annual rate of 6.8 percent from 2014 to 2020. That same year, exports from this sector reached $11.8 billion, and according to estimates from the Bank of Mexico, that figure will grow at an average annual rate of 5.1 percent for the next eight years.