“Made in Mexico” has become a brand that is respected the world over.
Like many Latin American countries prior to 1960, Mexico pursued a policy that is commonly referred to as “import substitution industrialization.” Countries throughout the region sought a path to economic prosperity through the substitution of imported manufactures with goods that were produced domestically. This economic development strategy required the creation raising of tariff barriers, as well as the use of import licenses and quotas to insulate Mexican manufacturers from foreign competition. The outcome of these efforts ultimately produced poor economic results, as well as shoddy goods in Mexico and the other countries in the region that had opted to pursue this course of action.
“Made in Mexico” took its first significant step forward on the global stage as a result of the termination of what was known as the “Bracero Program.” The Bracero Program began in 1942 as the result of a series of diplomatic agreements between the United States and Mexico. Although the arrangement had as its purpose the temporary provision of agricultural labor to the United States during the WWII years, the program continued until its formal termination in 1964.
Less than one year after the Bracero Program the Mexican government launched the Border Industrialization Program (BIP), or the Maquiladora Program as it has commonly become to be known. Concerned that a large, unemployed border workforce would be susceptible to social and economic ills, the Mexican government sought to create jobs by opening up the region to foreign investment. During its early years, the totality of foreign investment in manufacturing in Mexico was situated on the border. Today, international companies’ presence is felt the length and breadth of the country. The passage of the North American Free Trade Agreement, or the NAFTA, further enhanced the country’s ability to attract foreign direct investment (FDI) in it to the Mexican manufacturing sector.
Today the “Made in Mexico” brand is recognized for its excellence. It’s automotive industry is burgeoning. Mexican automotive production has almost doubled since 2009, and is predicted to reach a historic peak of four million vehicles by 2017. Companies that have made significant investments in the automotive industry in Mexico over the last several years include: Volkswagen, Nissan, Ford, Audi, Honda, Hyundai, Fiat and others. This boom in automotive production has ignited a three billion dollar boom for Made in Mexico steel.
Over the last several decades the “Made in Mexico” brand has evolved from a simple low-tech, high-volume, low-mix assembly-based manufacturing model to an emerging industrial powerhouse with in-country capabilities to produce a gamut of sophisticated items ranging from high-tolerance, precision machined components that are incorporated into modern jetliners to delicate and highly calibrated devices that are used in life saving medical procedures. The “Made in Mexico” brand has come to embody quality, as well as to represent one of the world’s most competitive total landed cost manufacturing locations.
A sampling of products that are made in Mexico by manufacturers that operate under the umbrella of the Tecma Group of Companies’ Mexico Shelter Manufacturing Partnership (MSMP)include:
- filtration and flow control components for medical applications
- products for the automotive aftermarket
- vehicle seating used by motor home and watercraft manufacturers
- braces, supports and sleeves designed to aid in sports injury recovery
- network infrastructure and connectivity solutions
- Precision transformers, motor laminations, toroidal and cut cores for multiple appliances equipment.
- Customs corrugated packaging for automotive, furniture and electronics industry.
- Flexible Intermediate Bulk containers for shipping, handling and storing dry-flowable and fluid products.
- Thermo controls for small motors, appliances and battery packs.
If you are a manufacturer now is the perfect time to affix the “Made in Mexico” label to your products, The Tecma Group of Companies can help you to bring this end to fruition in a cost-effect, risked minimized and timely manner.