Mexico an industrial leader – “Land of opportunities!”

The stereotype is “The Lazy Mexican”, but in reality, Mexicans are among the hardest working people in the world, according to a study by the Organisation for Economic Co-operation and Development (OECD)!

mexicoARCMexico is a significant market for manufacturing and automation products. Mexicans are the hardest workers in the industrialized world, China included. The OECD—the Organization for Economic Cooperation and Development, of which the United States is a member—studied working trends in three dozen countries, including paid and unpaid work. Mexicans topped the list, and exceeded the United States in both categories.

In 2011, Mexico received almost 20 billion dollars of Foreign Direct Investment (FDI), consolidating Mexico as one of the top recipients of FDI among emerging economies in the world. Mexico’s manufacturing industry and the financial services sector are top among the most preferred investment targets. Among the manufacturing sectors, the main recipients are automotive, iron & steel, beverages, and chemicals.

“Mexico has signed 11 Free Trade Agreements with 43 countries, including the United States, Canada, the European Union, and Japan, some of the largest and most lucrative markets in the world. Mexico actively participates in world trade. It is the 10th largest exporter and importer worldwide, accounting for 2.5% and 2.6% of the world’s total exports and imports, respectively. Mexico is a land of manufacturing opportunities,” according to Steve Clouther, the principal author of ARC’s “Automation Systems Market Outlook for Mexico” .

Economic Stability
In contrast to the widening crisis in the euro zone, Mexico can point to 17 years of macroeconomic stability, low inflation, manageable debt, an open economy, and increasing competitiveness. The gross domestic product expanded 3.9 percent in 2011, and there are forecasts suggesting that by 2050 it could be larger than that of France. Mexican factories are exporting record quantities of televisions, cars, computers, and appliances, replacing some Chinese imports in the United States and fueling a modest expansion.

Process Industries
In 2010, Mexico was the seventh-largest oil producer in the world, and the third-largest in the Western Hemisphere. State-owned Petroleos Mexicanos (Pemex) is one of the largest oil companies in the world. Mexico is consistently one of the top three exporters of oil to the US, along with Canada and Saudi Arabia.

• The Distributed Control System (DCS) sector is by far the largest automation technology for the process industries, especially oil & gas. All of the major DCS suppliers have a strong presence in Mexico.

• The DCS and SCADA sector accounts for more than a third of the revenues, and PLCs, IPCs, and Panels account for another fifth

Discrete Industries
The automotive industry is a very strategic industry for Mexico. In 2011, the automotive sector accounted for approximately 4 percent of the Mexican GDP and 20 percent of Mexico’s manufacturing GDP. According to the ranking of 40 countries by the International Organization of Motor Vehicle Manufacturers (OICA), based on car production, Mexico ranked eighth globally. The aerospace industry is another very strategic industry for Mexico. From an automation perspective, GMC and drives account for the largest investment, followed closely by PLCs, IPCs, and panels.

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