- FMA
- The Fabricator
- FABTECH
- Canadian Metalworking
Categories
- Additive Manufacturing
- Aluminum Welding
- Arc Welding
- Assembly and Joining
- Automation and Robotics
- Bending and Forming
- Consumables
- Cutting and Weld Prep
- Electric Vehicles
- En Español
- Finishing
- Hydroforming
- Laser Cutting
- Laser Welding
- Machining
- Manufacturing Software
- Materials Handling
- Metals/Materials
- Oxyfuel Cutting
- Plasma Cutting
- Power Tools
- Punching and Other Holemaking
- Roll Forming
- Safety
- Sawing
- Shearing
- Shop Management
- Testing and Measuring
- Tube and Pipe Fabrication
- Tube and Pipe Production
- Waterjet Cutting
Industry Directory
Webcasts
Podcasts
FAB 40
Advertise
Subscribe
Account Login
Search
Mexico: Riding the waves of manufacturing fortune
- March 14, 2014
Automotive manufacturing in Mexico accelerated in February 2014, which eventually will help the country become the No. 1 exporter of vehicles to the U.S. by the end of 2015.
Honda opened a new manufacturing plant in Guanajuato at the end of February, where it will produce more than 200,000 hatchbacks and compact sport-utility vehicles per year. Only days later, Mazda opened another assembly plant just down the road, where the company will manufacture as many as 230,000 units annually by the time it hits full capacity in 2016. Actually, Toyota plans to have Mazda build about 50,000 compact vehicles at the new plant in 2015. Mexico is becoming the small-car manufacturing capital of North America.
According to research firm IHS Automotive, Mexico is expected to export 1.9 million cars to the U.S. toward the end of next year, slightly edging out Canada, which is expected to send 1.87 million vehicles south to the U.S. Meanwhile, Japan has seen its exports to the U.S. steadily drop—from 1.67 million in 2013 to an expected 1.36 million in 2015. Much of that production has moved to Mexico, where these companies can take advantage of lower labor costs and avoid tariffs on car and truck imports into the U.S.
It’s also a vote of confidence in the Mexican economy. Honda, Mazda, and other automakers want to sell their cars and trucks in the Mexican market. Automotive News, a U.S.-based trade publication, reported that vehicle sales in Mexico have risen more than 7 percent annually since 2010. Mexican consumers have a thirst for small cars, and as anyone who works for GM, Ford, or Chrysler will tell you, the Japanese manufacturers know how to produce and sell well-made compact vehicles.
Of course, the key to prosperity is to always keep an eye on the horizon to see potential challenges and respond to them quicker than the competition. This goal of continuous improvement is commonplace in the lean-manufacturing cultures that dominate many automotive companies. They can’t solely rely on doing the same things tomorrow as were done today because the market is a very dynamic place. Labor rates can go up. An automotive recall is always a possibility. A new automotive design can fall flat on its face. A competitor comes out with an exciting new product that steals the spotlight—and potential buyers. Manufacturers have to be flexible to face whatever comes their way.
Just note that in the beginning of March, Ford announced that it was moving production of two medium-duty truck models from Mexico to an assembly plant in Ohio. Manufacturing technology has a way of closing the gap when it comes to labor costs. For Mexico to be a long-term player in global manufacturing, companies need to commit to being modern manufacturers. That strategy will help them stay afloat in the choppy waters of a global economy.
subscribe now
The Fabricator is North America's leading magazine for the metal forming and fabricating industry. The magazine delivers the news, technical articles, and case histories that enable fabricators to do their jobs more efficiently. The Fabricator has served the industry since 1970.
start your free subscription- Stay connected from anywhere
Easily access valuable industry resources now with full access to the digital edition of The Fabricator.
Easily access valuable industry resources now with full access to the digital edition of The Welder.
Easily access valuable industry resources now with full access to the digital edition of The Tube and Pipe Journal.
Easily access valuable industry resources now with full access to the digital edition of The Fabricator en Español.
- Podcasting
- Podcast:
- The Fabricator Podcast
- Published:
- 03/26/2024
- Running Time:
- 67:51
This week on The Fabricator Podcast, Jason Becker, host of the Arc Junkies Podcast and owner of Underground...
- Trending Articles
USS Midway’s tuition-free welding program a win-win
San Diego landmark becomes floating classroom for student welders
K&S celebrates 50 years in business
Guiding metal fabrication’s automation transformation
Increasing revenue by applying production concepts to sales and marketing
- Industry Events
Coil Processing Workshop & Tours
- April 2 - 3, 2024
- Corpus Christi, TX
GOLF4MFG South
- April 15, 2024
- Charlotte, NC
16th Annual Safety Conference
- April 30 - May 1, 2024
- Elgin,
Pipe and Tube Conference
- May 21 - 22, 2024
- Omaha, NE
World-Class Roll Forming Workshop
- June 5 - 6, 2024
- Louisville, KY