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Strong demand for imports of power tools in Mexico

May 1, 2018
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Why this is important to Wisconsin businesses: With domestic manufacturers unable to keep up with this demand, Wisconsin companies can help supply the needed tools.

Opportunities about for foreign power tool manufacturers in Mexico, since there is a deficit in most tools, equipment, accessories and consumables. While domestic manufacturers such as Grupo Urrea and Austromex do play an important role in the market, foreign brands are far more numerous and widely available across the nation. Brands such as Hitachi, Hilti, Evolution, Stanley, Klein Tools, Bosch, Stanley, DeWalt, Jet Tools, Black & Decker, Makita, Milwaukee Tool and Truper are well known and widely distributed.

While it is quite unusual for companies to focus on distributing power tools solely for carpentry and woodwork, these tools can be easily found in large and/or chain hardware stores across the country, which distribute power tools for other industries and uses. Power tools for carpentry are distributed in Mexico also by DIY stores such as Home Depot and by some department stores such as Sears. As has happened with so many industries and products, web-based businesses distributing power tools have become more common, and some companies combine the brick-and-mortar and online business models.

It may appear that domestic production of power drills is large enough for covering domestic demand in some years, but the large number of foreign brands and small number of domestic brands suggests otherwise. This discrepancy can be explained by the fact that some foreign brands such as Truper and Bosch manufacture their products in Mexico.

When it comes to power drills imported into Mexico, China and the U.S. are the major sources of these imports. The trend is clear: China is losing ground as a source of these imports, dropping from 94 percent of total imports to 74 percent between 2011 and 2017.

Due to free trade agreements, Mexico is currently not imposing any customs duties for importing these types of power drill products from the following countries: Canada, the U.S., the European Union, Israel, Uruguay, Iceland, Norway, Switzerland, Bolivia, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, Colombia, Chile or Peru. Notably, the situation may change for Canada and the U.S. given present negotiations. 

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