The resilience of the Mexican manufacturing sector

According to the Mexican Association of Industrial Parks (AMPIP), the manufacturing sector, and therefore the industrial real estate sector, will continue to be the most important driving force in Mexico.

Lorenzo D. Berho, President of the AMPIP, said that there was confusion in the industrial sector in recent months, however, after four months of living with the health COVID-19 crisis, the manufacturing industry’s resilience was demonstrated.

At the beginning of the pandemic, many industries were considered non-essential and were forced to stop operations. Therefore, at the end of April and beginning of May, the highest number of inactive companies was reached, representing between 50% and 60% of businesses Later, by the beginning of June, more than 90% of businesses were active again, and some even reached significant production levels.

The quick recovery of the manufacturing sector was largely due to strong pressure from the United States on Mexican companies to complete the region’s supply chain, particularly in the automotive industry, which prompted the Mexican government to give in and consider the industry as essential.

Berho says it is essential to see Mexico, the United States and Canada as parts of a region, given that the manufacturing industry’s supply chain in North America is already fully integrated, and so the pressure from the U.S. was due to the fact that it could not reopen plants in the U.S. without supplies from Mexico.  

From his perspective, Berho believes that manufacturing will continue to be the most important driving force in Mexico, especially now, when the economy depends on various sectors such as mining, energy, tourism, manufacturing and agribusiness, as well as service sectors such as logistics, which will be driven by e-commerce and represents a growth opportunity for Mexico. 

Oradel Industrial Center has a superb location for manufacturing and logistics operations. It has all the infrastructure required by the most demanding industries. It offers Class A industrial buildings with or without rail services. It is located only 10 miles from the international bridges to the United States.