WORLD OF INDUSTRIES 02/2018

Mexican manufacturing takes
the center stage at Hannover
NEWS AND MARKETS
At Hannover Messe, the spotlight will be on Partner
Country Mexico, as the Latin American country
showcases its manufacturing prowess with cost
effective innovative products and technological
developments, the key factors that make it an
attractive investment destination.
Author: Sushen Doshi, International correspondent for World of Industries
Mexico, with a population of more than 120 million is generally
seen as an advanced emerging market. It is the world’s
15 th -largest economy achieving a GDP slightly more than $ 1 trillion
in 2016. It is the second-largest economy in Latin America,
world’s 13 th largest exporting and 12th largest importing nation.
About one third of Mexico’s GDP comes from industry. In terms of
industry, the country’s main strengths lie in automobile and automotive
parts manufacturing, aerospace, electrical engineering, oil,
natural gas and chemicals. It is a major producer of automobiles,
and is in fact the world’s fourth largest exporter in the automobile
sector. The energy market reform process, which began in 2013,
has given a new lifeline to the country’s oil, gas and energy sectors.
The reforms have brought various private investors into the energy
market alongside the country’s state-owned companies. Over the
past seven years, Mexico’s overall energy requirement has grown by
25 %. This growth includes a 50 % increase in the country’s electricity
requirement. While this energy requirement is currently met primarily
from oil and gas, the government now has a diversification
strategy aimed at generating 35 % of the country’s total energy requirement
from renewables, such as wind, solar, hydro power, and
nuclear by 2024. The growth areas of the Mexican economy include
renewable energy, mechanical engineering, healthcare and logistics.
Of particular interest is the logistics industry, which currently
generates about 15 % of Mexico’s GDP. Mexico is currently working
12 WORLD OF INDUSTRIES 2/2018