« Insights > Maquiladora

Mexico's Manufacturing Industry Projected to Grow by 8% in 2012

Admin | 25.01.2012

This year, the manufacturing industry will grow 4 percentage points less than in 2011, going from 12.3 to 8 percent, but against the scene of a slowdown in the United States, the recovery for 2012 might diminish furthermore, up to 5 percent, estimated Luis Aguirre, president of the National Advice of the Maquiladora and Manufacturing of Exports Industry (Index).

On Foreign Direct Investment (IED) projected for 2012, he indicated that in this item there’s also a change in its expectation of growth, since "with regard to 2011 we have moderated the investment projections, in 5 percent this year, we’re talking about a little more than four thousand 500 millions of dollars. "

In an interview after the taking an oath of the Index’s 2012 Directive Board, led by the head of the Secretariat of Economy (SE), Bruno Ferrari, Aguirre Lang warned that such adjustments are even “conservative and moderate" compared with such a volatile scenario and the uncertainty that prevails in the world.

In spite of that last year it was able to extend until 2013 a series of fiscal benefits to encourage investment in the industry, the executive felt some “sensitive issues” remain in the sector, such as competitiveness and the increment in national supply.

Currently, only 5% of the inputs in the industry are national, which is very low and it becomes a competitive disadvantage compared to other Latin countries or emerging economies like China and India.

“Between 4 and 5 per cent is national supply. There are regions as the west side of the country, where the electronic industry is established and national supply already exceeds the 10 per cent. Obviously we’re looking to develop more supply for export.”

He added that this year there will be investments in new areas related to the electrical, automotive and aerospace industries, in states such as Sonora, Baja California, Chihuahua, Jalisco, Guanajuato and Tamaulipas, where nearly 80 percent of investment in these industries will concentrate.

Impulse

Separately, Ferrari pointed out that manufacture is an industry that brings dynamism to the economy, so that as the “single window” demand was met, recently launched in Lazaro Cardenas, Michoacan, in the remainder of this administration they will work to boost competitiveness.

With regards on how the internal market will be reactivated, which was Aguirre Lang’s worry during his speech, the secretary of Economy commented that they will continue granting credits.

Source:El Financiero

Insights