Manufacturing Mission Trip to Mexico

SPETA conducted a successful Manufacturing Mission Trip to Mexico from Oct 3-7, 2022. The delegation was led by SPETA Deputy Chairman Steven Sim (MD, Asia of Trend Technologies), with participants from member companies Racer Technology, Aluputer, Delphic Manufacturing Solution, Fu Yu Corporation, Kay Kay Plastic Industries and Zeito International.

We travelled to Guadalajara, León and Mexico City to meet with manufacturers, business owners, trade associations, consultants and government officials from across Mexico. A highlight of the visit was to attend the Industrial Transformation Mexico trade show in León and a tour of the nearby Pirelli factory.

Our key findings were :

 

  • Mexico Manufacturing is strong and will continue to expand.   It historically relied on the supplier base from China, which was sufficiently price competitive and logistically efficient.  But in the past few years, rapid changes exposed a lack of sufficient suppliers in Mexico, translating into a tremendous opportunity of new investors.   Suppliers of machining, moulding, surface finishing, and other components / services are hence very welcome.

 

  • Due to all this activity, investors in Mexico will have to cope with a tight supply of labour, land and other resources.  This is no different from many parts of the world today.  It would be wise to factor these costs and timing needs right from the start.

 

  • The primary reason to invest in a Mexico plant now is to serve the manufacture of products that eventually enter the US / Canada markets.   Hence the first set of investors from Singapore will be those already in these supply chains and facing customer requests to set up a plant there.   Those that have not yet secured such customer commitments or not even in these supply chains to the US / Canada should do so first.

 

  • There is a range of consultants, Mexico government officials, association and local Mexican companies that strongly welcome the chance to work with Singapore companies.   SPETA will work with EnterpriseSG and friends like the Mexico Embassy in Singapore and the SGMXCHAM (Singapore Mexico Chamber of Commerce) to facilitate this.

 

 

Companies interested to find out more can contact simon_lim@speta.org.

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