Mexico
Covering almost two million square kilometers, Mexico is the sixth largest country in the Americas by total area, and the 13th largest independent nation in the world. The country has an estimated population of over 120 million; it is the eleventh most populated country and the most populated Spanish-speaking country in the world.
Mexico has the fifteenth largest nominal GDP and the eleventh largest purchasing power parity. The economy is strongly linked to its North American Free Trade Agreement (NAFTA) partners, especially the United States. Mexico is one of the most competitive countries for productive investment and research and development resources, in terms of the following: macroeconomic and political stability, low inflation, size and strength of its domestic market, economic growth rate, and the government’s commitment to investment and ability to attract advanced manufacturing.
The Mexican car industry is gaining recognition and has contributed generously to Mexico’s economy. In 2015 alone, seven major automobile companies announced the creation of manufacturing plants in Mexico totaling about 8.3 million dollars in investments.
Mexico is the eleventh global market for pharmaceuticals with a net worth of 13.2 billion USD. This industry is perceived to have a large amount of potential and high healthcare needs in the future.
In the past decade Mexico joined the aerospace market with a high level of success. The country has a vast labor force, growing number of university-educated engineers, and an ideal geographic proximity to more established aerospace markets, such as the United States, Canada, and increasingly Brazil.
Future Prospects
The future of the manufacturing industry in Mexico is focused on digitalization. The German giant, Siemens, is working hand-in-hand with the Mexican government to promote digitalization of manufacturing all over the country. The project between Siemens and the Mexican government will bring an estimated value of 36 billion dollars to the Mexican industry. The country is expected to have an important boost in technological innovation, industry digitalization, and energy management. Technology in Mexico will have a positive impact on the country’s economy and education levels.
Overall the country has a stable economic situation and had a growth in GDP of 2.5 in 2016. Mexico is considered to be an “emerging market” by many global companies. It is expected to have enormous potential in the up coming years and companies hold high expectations for their local subsidiaries.
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