Region/Countries: Mexico, North America Industry: Manufacturing, Other Date: July 2016

Why this is important to Wisconsin businesses: Both industries depend on imports from U.S. companies.

The chemicals industry in Mexico has become a key industry within production chains, and thus represents an important source of capital investment in the long term. It also is one of the key industries for generating employment, at about 18 percent.

Production in this industry is concentrated in seven states: Mexico (23%), Nuevo Leon (14%), Mexico City (14%), Jalisco (9%), Guanajuato (9%), Queretaro (5%) and Tamaulipas (5%).

However, the chemicals industry is going through challenges, since production has dropped in recent years and its share of the GDP has been decreasing over the last 15 years, going from 8 percent in 2000 to 2 percent last year.

The chemicals industry shows a large deficit in its trade balance: according to the National Institute of Statistics and Geography (INEGI), imports are about 131 percent higher than exports in this sector. This represents a good opportunity for North American companies, since 75 percent of the imports come from this region.

The plastics industry represents processors and manufacturers of machinery, molds and raw materials. Plastics play a vital role in the delivery of a countless number of products that enhance every aspect of our lives, including automotive, health and medical, construction and recreation, among many other industries.

According to the National Association for the Plastics Industry (ANIPAC), the states in Mexico with the greatest concentration of plastics production are Mexico, Guanajuato, Nuevo Leon, Jalisco and Puebla. Guanajuato had the second-highest growth in production of plastics after the State of Mexico. This growth is generated due to the aerospace and automotive industries, which are strong in that area.

The plastics industry in México has seen strong growth. According to INEGI, the industry has been growing steadily over the past two years, during which production increased by about 7 percent, consumption by 9 percent and exports by 12 percent.

The industry is recovering and reemerging from a valley that stretched from 2005 to 2013. Exports and consumption are growing quickly, but the trade balance reflects a huge deficit, with the U.S. as the primary supplier to Mexico. This creates an opportunity for U.S. companies in the Mexican market.