A number of factors bode well for Mexico’s industrial sector. Cheap labour costs, proximity to the US market and improving human resources have attracted global firms. Additionally, as trade tensions between the US and China show no signs of abating, multinationals are now looking to move manufacturing to Mexico in order to maintain ties to the US market and avoid additional tariffs. That said, the election of President Andrés Manuel López Obrador – better known by the acronym AMLO – has…
Industry & Mining
From The Report: Mexico 2019
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A number of factors bode well for Mexico’s industrial sector. Cheap labour costs, proximity to the US market and improving human resources have attracted global firms. The sector in Mexico is making gains in some strategically important areas, and strong performance in the mining, electronics and agri-business segments is driving overall growth. Even as protectionist measures and bilateral trade tensions dominate the headlines, Mexico is strategically positioned to support Chinese manufacturers looking to bypass US tariffs. A number of risks and uncertainties remain for several industrial segments, however. The shortage of oil and natural gas supply, the absence of a government-led policy and criminal activity along supply routes are causes for concern. Still, investors will likely see ample opportunities in Mexico’s strong ties to the global economy, especially the US and China. This chapter contains an interview with Francisco Cervantes, President, National Confederation of Industry Chambers.