Key sectors of the Mexican economy

Course summary Key sectors of the Mexican economy:

Mexico is the country with the most competitive operating costs for the aerospace industry. Sector exports in 2010 maintained their 16.5% annual growth rate, valued at approximately 3,200 million USD. There are over 190 companies within the aerospace industry, employing nearly 30.000 workers.

Mexico is the second largest producer of vehicles in Latin America. In 2010, more than 820,000 vehicles were sold in Mexico. The industry represents approximately 3% of the GDP, and 18% of national manufacturing production. The automotive industry represented 23% of all national exports. 69% of national production was exported to the United States.

100 of the largest auto parts companies in the world are in Mexico. During 2008, Mexico produced about 30 billion dollars in auto parts, which have had as principal destiny the United States, with 80 percent of production.

In 2010, the processed food industry in Mexico generated a market value of $93,362 million USD, becoming the third highest valued in America, just behind the US and Brazil. Mexico is the 10th largest market valued worldwide in this industry. The Mexican processed food industry accounts for 22% of the manufacturing GDP. Mexico ranks as the eighth largest producer of meat worldwide. The main market target for Mexican processed food exports was the US, and represented 72% of the total demand.

Example of the course: Key sectors of the Mexican economy

The cluster of medical products located in Baja California is an important success story. This cluster, in conjunction with San Diego, California, forms part of the most diverse and sophisticated bi-national grouping of medical products in North America. According to INEGI, the value of production of this sector in Mexico reached 590 million dollars in 2010. Mexico is the leading medical device exporter in Latin America and the primary supplier to the United States. In 2010, Mexican medical device’s exports to the U.S. reached 5.4 billion dollars.

Mexico is one of the main suppliers of household appliances in the world. In 2010 it exported 5,683 million USD, which positioned it in 6th place on a global level. In 2010, production in the household appliance sector in Mexico reached a total of 5,601 million USD. Mexico has a leading position as exporter of split-door refrigerator/freezers and is the third exporter of 1,500 W vacuum cleaners.

Mexico has a solid installed capacity for manufacture of electronic products, which was valued at 53,988 million USD in 2010. Manufacturing companies are mainly located in Baja California, Chihuahua, and Tamaulipas, employing around 258,000 people across the country, according to INEGI. In 2010, exports from the electronics industry accounted for 28% of the country’s non-oil exports, with 71.404 billion dollars. In 2010, Mexico occupied first place in the world for the value of its exports of flat-screen television sets and third place as far as cellular telephones were concerned.

In recent years Mexico's advantages have led to high growth rates in the value of IT services production. In 2010, the estimated market value for IT services production (including business process outsourcing or BPO) was 4.03 billion dollars, while the estimated market value for software was 2.259 billion dollars, according to Business Monitor International. Mexico has more than 25 IT clusters throughout the country comprised of more than 700 companies. In 2010 Mexico ranked 2nd place in Latin America as an investment destination with 23% of the total in software projects in the region. The projects were located mainly in Monterrey, Guadalajara and Mexico City.


Acquisition of FEMSA by Heineken
Founded in 1890 in Monterrey, Mexico, FEMSA is comprised of two complementary business units: Coca-Cola FEMSA, the largest public bottler of Coca-Cola products in the world in terms of sales volume, and FEMSA Comercio, the largest and fastest growing convenience store operator in Mexico by number of stores.

In 2010, Heineken continued to create new platforms for future growth by acquiring the beer operations of Fomento Económico Mexicano, S.A.B. de C.V. in Mexico (including its US and other export business) and Brazil, an acquisition that strengthened the Company’s leading international portfolio with the addition of the Dos Equis®, Tecate® and Sol® brands.

Bosch Group in Mexico
The Bosch Group is a leading global supplier of technology and services. Some 283,500 associates generated sales of 47.3 billion euros in fiscal 2010.
Bosch Mexico is a regional branch of the Bosch Group, one of the world's biggest private industrial corporations formed by 300 subsidiaries and regional companies, with some 280,000 associates and 6,000 apprentices. . During the 2010 tax year, Bosch in Mexico generated domestic sales for $806 million dollars, an increase of 32 percent compared to the previous year (2009: $611 million).

Mexico is the world's 10th biggest economy and the 7th most important commercial trader.

Mexico has an exceptional geographic location with easy and fast communications between Mexico and North America, South America, Europe and Asia, as well as economic ties between these regions.

The economic figures indicate a well established and sustained economic program aimed at growth and sharing this growth with all the companies involved.

As a January 1, 2001, Mexico started applying new rules to the temporary imports of goods and services used by "maquiladora" plants in Mexico, as provided in the Decree that Establishes amendments for the promotion and Operation of the export "Maquiladora" Program.

Source: Promexico and Secretaría de Economía Gobierno Mexicano.