Mexican industry seeks to gain ground on Chinese manufacturing sector

The Mexican manufacturing industry has the technological tools and human resources necessary to compete with China.

According to Luis Manuel Hernández, President of the National Council of the Maquiladora and Manufacturing Export Industry (Index), at the national level the future of manufacturing is linked to China’s economic performance. 

He noted that since 2003, China’s share of total U.S. manufacturing imports has been greater than Mexico’s in almost all subsectors, especially those requiring advanced technology. However, this year has opened up opportunities for the sector to develop which could make Mexico more competitive. 

There are several key elements that must be taken into account in order for Mexico to remain competitive with China, especially if we take into account that Chinese products have been gradually replacing Mexican products in both labor-intensive industries and those of greater technological complexity. In terms of scientific and technological development, Mexico needs the government to consider training a greater number of engineers and fomenting abilities that will help reduce dependence on technological imports. 

The momentary halt to Chinese supply chains as a result of the COVID-19 pandemic is another opportunity that should be leveraged. It will prompt Mexico to invest in its competitive advantages that come from its geographic proximity to the United States.

In addition, Luis Manuel Hernández believes that in order to increase Mexico’s industrial competitiveness with China, it is essential for the government to participate in and support issues that are still pending, such as the USMCA, investment in the development of human capital and production chains, where the manufacturing industry spends more than 6 billion dollars of domestic inputs per month, which is why there has been an opportunity to develop these suppliers.

Oradel Industrial Center has over twenty years of experience building industrial warehouses for industrial companies. It is located only 10 miles from the Mexico Texas border. It also offers Industrial buildings with rail service making it the most attractive location for logistics and manufacturing industries