Mexico Launches Plan To Drive Industrialization for Economic Growth
With new winds blowing in the globalization and trade agreements arena – and strengthening regional supply chains – Mexico’s government and private industry are coming together to launch the new Plan Mexico initiative. Intended to promote industrialization and prosperity in the country’s various economic regions, the ambitious plan focuses on training new workers and professionals, increasing FDI in-country, expanding value-added, and increasing Mexican content in global value chains over the next six years.
The main goals of the plan that are potentially favorable for AMT members are:
Increase Mexican content in the global supply chain of strategic sectors – such as automotive, aerospace, semiconductors, pharmaceutical, and chemical – as identified by a multisector team from government agencies and industry. This initiative is triggering increased inquiries into manufacturing processes and systems to complement current manufacturing capacity and prepare for future demand from nearshoring efforts.
Increase the number of jobs in manufacturing for specialized processes and to foster innovation. Technical schools, both public and private, will need additional hardware to educate and graduate the number of students needed to cope with that expected growth.
Increase the value added in goods manufactured in Mexico, which will require new and upgraded capital goods and machinery for operations and processes not currently deployed in-country.
Drive North American supply chain integration and capitalize on the Mexican industrial community’s current preference for purchasing from U.S.-based brands over Asian or European counterparts.
Plan Mexico additionally seeks to receive $100 billion annually from foreign investments by 2030; increase domestic content in global value chains by 15% in products for industries such as automotive, aircraft manufacturing, electronics, secondary processes to semiconductor assembly, and more; generate 1.5 million jobs and increase the number of trained graduates from community colleges or technical schools by 150,000 each year; and finance at least 30% of small and medium-sized enterprises.
Specific actions announced and already in operation that will benefit the manufacturing industry are:
Immediate deduction of capital goods acquisition, with an accelerated depreciation program for strategic sectors.
Immediate deduction of all investments related to technical training from registered technical schools or research institutes.
SMEs seeking financing to invest and grow can declare their main customers as collateral for consideration in risk analysis.
Four strategic sectors will require manufacturing technology investment: semiconductor assembly, electronic goods manufacturing – from computers to distribution, automotive and electromobility, and medical devices and pharmaceuticals. Mexico has also launched an initiative to strengthen the manufacturing of railroad equipment and engines. States like Mexico State, Nuevo Leon, Jalisco, Guanajuato, Tamaulipas, and Aguascalientes will be key players in implementing the strategy.
For the aerospace sector, the goal is to rank among the top 10 countries in aerospace production value, boost local and regional content in aerospace exports by 10%, and design and manufacture components for a national constellation of observation satellites.
Reach out to AMT Mexico to learn more about Plan Mexico and the opportunities it offers your company. Our various services will help manufacturers capitalize on this opportunity as North America faces fierce competition from other industrial poles like Asia and elsewhere.
If you want to know more about AMT’s products and services in Mexico and Latin America, like the Market Penetration Workshop, targeted trade missions, prospecting projects via the MASS program, and logistics management, please contact Carlos Mortera at cmortera@AMTonline.org or Manuel Olivares at molivares@AMTonline.org.
