Photo owned by Magnusson Klemencic Associates

(Article in spanish)

El flujo de productos entre San Diego y Baja California alcanzó 1,400 millones de dólares en el 2018 .

El líder del eje económico del CDT, Miguel Velasco Bustamante, explicó que de acuerdo con el Colegio de la Frontera Norte entre ambos lados de la frontera hay un intenso flujo de mercancías que tan sólo durante el 2018 alcanzó la cifra de 1,400 millones de dólares de productos.

El empresario comentó que el consejo trabaja en un reporte con la actualización de las necesidades de la proveeduría y las oportunidades de negocio que hay en la zona metropolitana y San Diego; así como dar impulso a la mejora regulatoria e incentivos a la productividad y a la inversión.

Para ello, el año pasado el organismo empresarial inició con un diagnóstico de las necesidades de la proveeduría de la región, con la intención de conocer las vocaciones de la ciudad y las áreas de oportunidad de cada uno de los sectores de la industria.

Detalló que el estudio es realizado con fondos del Fideicomiso Empresarial de Baja California y se logró la actualización de necesidades de proveeduría, en coordinación con la Cámara Nacional de la Industria de la Transformación (Canacintra) en Tijuana, con quien se trabajó en la promulgación de la Ley de Fomento a la Proveeduría local.

Se hicieron análisis de cada uno de los sectores en particular con en el electrónico y se coordinaron trabajos para conocer demandas de las grandes empresas tractoras.

“Se encontró que en la industria electrónica hay una serie de componentes, productos y servicios que tienen que importarse y que hay capacidades instaladas localmente para que haya más proveeduría”, expresó.

Velasco Bustamante detalló que la idea del CDT es contribuir con información para que el ecosistema pueda obtener apoyos de los gobiernos municipal, estatal y federal.

“Para este año la idea es actualizar las necesidades de proveeduría y las oportunidades de negocios; se han contratado servicios de un despacho internacional para ser más precisos y saber cuáles son las oportunidades de negocios en cada uno de los sectores”, declaró.

Por su parte Aarón Victorio Escalante, director del CDT, señaló que dentro del eje económico se trabajó en diversos proyectos durante el 2018 que se han ido consolidando con la finalidad de promover la proveeduría local.

Durante la presentación del estudio de Cadenas Productivas y Contenido Nacional de la Industria Maquiladora del municipio de Tijuana, destacó que a través de ese análisis se encontró que en los diversos sectores de la industria hay un potencial importante de crecimiento.

De acuerdo con Canacintra, las maquiladoras en el estado compran tan sólo 2% de insumos locales, y con la iniciativa de fomento a la proveeduría estatal se fijaron como meta incrementar ese consumo hasta 30%, representando 293 millones de dólares anuales para beneficio de la región, por cada punto porcentual que se aumente.

Article originally published by Gabriela Martínez, source: www.eleconomista.com.mx

Querétaro tiene 5 parques industriales en construcción

En la actualidad operan en el estado 45 parques industriales que albergan más de 1,600 empresas.

 

En el estado de Querétaro existen en la actualidad cinco parques industriales que están en construcción para este 2019, informó Marco Antonio del Prete Tercero, secretario de Desarrollos Sustentable de la entidad.

El funcionario explicó que se trata de dos parques industriales en el municipio de Pedro Escobedo, dos más en San Juan del Río y otro más en la ciudad de Querétaro, con una extensión total de hasta 700 hectáreas.

Del Prete Tercero detalló que en la actualidad operan en la entidad del Bajío 45 parques industriales que albergan más de 1,600 empresas de diferentes industrias, mismas que generan más del 40% del PIB estatal.

Aunque no dio a conocer el monto de dichas inversiones, el representante del gobierno adelantó que se trata de micro-parques y complejos industriales más grandes, además de la ampliación de otros ya existentes en municipios como San Juan del Río.

 

Article orginally published by Fernando Navarrete, source: https://centrourbano.com/
Among states, Baja California Sur was No. 1 with 269% growth.

Data from the National Institute of Statistics and Geography (Inegi) shows that Mexico’s overall manufacturing growth between 2013 and 2018 was 17.9% – 1.4% higher than that achieved in the previous six years. The increase in the value of nationwide production was largely driven by the Bajío, a region made up of Guanajuato, San Luis Potosí, Querétaro and Aguascalientes.

Western Mexico – Jalisco, Michoacán, Nayarit and Colima – achieved the second highest growth in the period, with the value of its production up 25.3%.

The northern border region – taking in all six states that abut the United States – was next with 21.5% growth, followed by the central-north region with 15.3% growth and central Mexico, which saw a 9.8% increase.

Among individual states, Baja California Sur was a clear-cut winner. The state saw whopping growth of 269% between 2013 and 2018.

San Luis Potosí was in second place with the value of its output increasing by 73.7%, while Aguascalientes recorded 70.4% growth to finish third.

Mexico’s south and southeast was the only region that saw a decline — a 17.3% decrease. Manufacturing shrunk by 42% in Oaxaca, 16% in Veracruz, 11.8% in Guerrero and 0.8% in Tabasco.

Output in Tamaulipas, Hidalgo, Mexico City, Sonora and Durango also declined in the six-year period.

 

The total value of manufacturing in Mexico last year was just over 7.3 trillion pesos (US $380.1 billion), with 32% of that figure coming from the northern border region. Factories in central Mexico generated 28.2% of the wealth and the Bajío region contributed 21.5%.

In 2013, the same three regions, in the same order, were also the leading contributors to the value of Mexico’s overall manufacturing output.

But 2018 figures show that only the Bajío increased its participation in percentage terms, contributing 4.3% more than it did in the first full year of Enrique Peña Nieto’s presidency.

The newspaper El Economista said that policies introduced by governments in Guanajuato, San Luis Potosí, Querétaro and Aguascalientes have been the driving force behind the Bajío region’s strong performance in manufacturing, pointing out that the states entered into commercial alliances that helped them to attract domestic and foreign investment in sectors such as automotive and electronics.

In November, the governors of the four states also agreed to work together to create a new manufacturing region to be known as the Central Bajío Corridor.

Long-term cooperation between the states will also extend to security, tourism, transport and social development, among other areas.

 

The Bajío region state that generates the most manufacturing wealth is Guanajuato.

Since 2010, it has ranked fourth every year for the value of its economic output behind México state, Nuevo León and Coahuila, which have maintained their spots, in that order, as Mexico’s top three manufacturing powerhouses for almost a decade.

San Luis Potosí and Querétaro are now also in the top 10 manufacturing states, taking the places of Sonora and Tamaulipas, which featured in the 2013 list.

The 7.3 trillion pesos generated by manufacturing last year accounted for 16.1% of gross domestic product (GDP), making the sector the most important of Mexico’s economy.

Production of cars and pickup trucks was the most profitable sub-sector of the manufacturing industry last year, generating 16.2% of all wealth followed by oil refining, which contributed 4.1%.

The production of buses and trucks was the third most profitable sub-sector, making a 4% contribution to the industry’s value.

Between 2013 and 2018, the value of parts manufactured for vehicle transmission systems increased by 101.7%, making it the best performing sub-sector in terms of growth, followed by beer production, which surged 73.5% and car and pickup truck production which grew by 68.1%.

Petroleum refining and the production of pharmaceuticals and tortillas were among the manufacturing sub-sectors whose contribution to total manufacturing value fell while Peña Nieto was in power.

Article originally published by Rodrigo A. Rosales on Wednesday, February 20, 2019 Source: mexiconewsdaily
Artículo publicado por Yolanda Morales on February 14th, 2019

 

México, noveno destino de inversión productiva a nivel mundial: PwC

México se ubica como el noveno destino más atractivo de inversión productiva mundial de acuerdo con CEO’s de las principales empresas multinacionales encuestados por PwC.

Con este resultado, se coloca junto con India y Brasil, como los únicos emergentes entre los 10 países más importantes para las expectativas de crecimiento de empresas multinacionales.

Al interior de la encuesta mundial de PwC número 22 de los CEO globales, edición México, se observa que el país escaló cuatro posiciones en 12 meses, desde el lugar número 13 que ocupó el año anterior.

Este avance es resultado del optimismo que despertó en los directivos el pacto sellado entre México, Estados Unidos y Canadá para renovar los intercambios entre los tres países, explica el Socio Director de PwC México, Mauricio Hurtado de Mendoza.

“El acuerdo comercial pactado tras más de un año de negociaciones fue determinante para el ánimo de los directivos. Cierto es que falta la ratificación legislativa, pero el acuerdo tranquilizó a los mercados y reubicó a México como destino interesante para invertir”.

Entrevistado por El Economista, matiza que la ubicación geográfica y proximidad con Estados Unidos, se mantiene como el punto de atención para los capitales productivos. Pero reconoce que el año pasado en particular, la desaceleración de otros países como Rusia, Hong Kong y Japón, también fue un facilitador para el retorno de México a la mira de los inversionistas.

Al interior de la encuesta, en el capítulo de México, divulgado hoy, identifican antes de México para las perspectivas de crecimiento de sus organizaciones a Estados Unidos; China; Alemania; India; Reino Unido, Brasil, Francia y Austria.

Estado de derecho e inseguridad, límites

El Socio Director de PwC México, admitió que los factores que limitan la posibilidad de una mejor posición de México en el radar de inversiones productivas son la corrupción, la debilidad del estado de derecho y la inseguridad.

La inseguridad es un tema de preocupación en todos los países, consignó Hurtado de Mendoza. Pero en el caso de México es uno de los grandes temas pendientes que ayudarían a dar certidumbre a continuar viéndolo como destino más redituable.

En la encuesta, que recoge la impresión de más de 1,387 CEO’s de 91 países, encontraron a la cabeza de de la preocupación sobre México a la Sobreregulación, la incertidumbre política, y los conflictos comerciales. Cada uno de estos temas, concentraron 35% de las respuestas.

El segundo foco de preocupación para los directivos, en México, son los ciberataques, que fueron identificados por 34% de ellos.

La encuesta de los CEO´s de PwC tiene una periodicidad anual, y se divulga a nivel mundial en el primer día de trabajos del Foro de Davos, a mediados de enero. La edición para México, fue lanzada un mes después, el 14 de febrero.

Las respuestas fueron recogidas entre el 4 de septiembre y 23 de octubre del año pasado. Lo que significa que incorpora la impresión que causó en los CEO´s, el triunfo de Andrés Manuel López Obrador en las elecciones presidenciales, el arranque del periodo de transición y la conclusión favorable que originó el acuerdo comercial con Estados Unidos.

Para consultar el artículo original: https://bit.ly/2GOYkXp

By Bianca Wright, originally published on February 11, 2019.

Easy movement across the border to and from San Diego is key to Tijuana’s tech outsourcing attractiveness.

Situated just 18 miles from San Diego across one of the busiest land borders in the world, Tijuana has long been building its reputation as an attractive outsourcing destination. Almost 2.1 million people live in Mexico’s sixth-largest city, many of whom are U.S citizens. Many more cross the border daily for work and collaboration between the two cities has been core to transnational development. This easy movement is one of the key drivers for tech growth in the city and broader region.

Lonnie McRorey, Co-Founder and CTO of Framework Science, believes that the outlook for the tech sector in Tijuana is one of exponential growth – unless the current U.S administration makes it more difficult for US citizens to live in Tijuana and for Tijuanans to go to work in San Diego every day. “Border politics is a double-edged sword in my opinion,” McRorey says.

Retaining a Transnational Spirit

Mexico-US relations have been under pressure as continued rhetoric from the Tump administration has focused on the building of a border wall, to be paid for by Mexico – something the Mexican government has consistently reiterated it will not do. Opponents have challenged the President’s assertions.

Following his State of the Union address on February 5, El Paso, Texas mayor Dee Margo, a Republican, wrote in a column for USA Today: “We in El Paso, Texas, are a community that transcends the border. While some are concerned about our proximity to Mexico, we choose to celebrate it. While others embrace building a wall, we remind them a fence already exists.”

Similarly Andrea Guerrero, executive director of the community group Alliance San Diego, told the Guardian in December 2018 that “Tijuana and San Diego are one community, with one heart.” This transnational spirit remains strong in places along the border.

Despite this uncertainty, Tijuana remains poised for growth in the tech sector. Adriana Eguia Alaniz, Vice President of New Business at Vesta Industrial Real Estate, agrees, describing Tijauna’s tech developments as “a growing sector with a lot of potential for success.” Eguia is the former CEO of the Tijuana Economic Development Corporation and former Executive Director of the Cali Baja Bi-National Mega-Region.

More than 15 Los Angeles and San Diego start-ups have joined Framework Science as a result of the binational network. “It’s amazing how quickly San Francisco companies can get down to San Diego and cross the border to take an Uber to their site operations. Tijuana is basically South South San Diego,” McRorey says.

Sounding the Call for Tijuana Investment

Known initially for manufacturing and now for IT companies outsourcing their call center operations there, there are now a growing number of companies in Tijuana that are focusing on coding. Initiatives to draw companies in software, robotics and AI have sprung up, and, according to the San Diego Regional EDC, the rise of the innovation cluster and creation of incubators and new co-working spaces such as BitCenter and MindHub “foster the entrepreneurial spirit of locals.”

High-tech companies are now looking to Tijuana as an attractive option. “Gaming companies, high-tech medical device companies and so on, are now based in Tijuana and are looking to grow in this city with a lot of potential,” says Eguia.

However, Tijuana needs to ensure that its benefits are visible to the world. “There’s more to be done regarding positioning. People don’t know all the things that can be done here. Even though talent is available, companies are also bringing people from the South of Mexico that sometimes makes for a slower recruitment process. There’s no tech visa for Mexico, but the legislative process is running for Mexico to give the news for 2019,” says Eguia.

McRorey adds: “Mexico also boasts the highest numbers of STEM graduates across the American continent! Tijuana’s culture is binational by default, making it a hot spot for investments. Right now the real estate business and construction is booming.”

He explains that Tijuana is poised to be at the epicenter of transitional change as prime-country-city for cost-effective design/manufacturing and digital enterprise development outsourcing. “US companies are eyeing Mexico because of NAFTA and what it means for IP rights, and for the extreme proximity to the U.S,” he says, adding that Tijuana’s bi-cultural workforce makes it preferable to countries in Asia, for example.

The Need for Trusted Partners

He adds that Tijuana is primed for all types of outsourcing needs, from assembly and manufacturing to full product R&D. “Talent is drawn from Mexicali, Ensenada and Tecate thus the wide geographical dispersion makes it the ideal city for this type of boom in the next 10 years,” McRorey says. Mexico’s president’s agenda of lowering taxes and gasoline costs across the border with the US greatly incentivizes investments and business operational outsourcing opportunities.

Both agree that capitalizing on Tijuana’s attractiveness requires local knowledge and a good partner. “You need a trusted partner on the ground that can navigate business infrastructure and people operations. It is best to move to Tijuana for a few weeks or months to build a network,” McRorey says.

Eguia adds that you will need to be helped by an ecosystem expert or you can get lost to companies that may be not quality oriented. “There is also a lack of information if searching on the internet,” she cautions.

 

Original article: https://www.nearshoreamericas.com/tijuana-exponential-growth/

(Article in spanish) by Ana De León / QuerétaroFebruary 2019

Con el objetivo de dar a conocer al sector industrial y a las entidades relacionadas con la industria aeroespacial en Querétaro y la región, el AeroClúster de Querétaro presentó su informe anual sobre las actividades realizadas en el 2018 y su plan de trabajo para el año 2019.

Juan Carlos Corral Martín, presidente del Aeroclúster de Querétaro, indicó que se siente satisfecho con los resultados obtenidos durante los primeros dos años que ha dirigido la institución.

“Cambiamos estatutos, hemos duplicado el comité directivo dando participación a más empresas, gracias a los trabajos llevados a cabo, el sector en general se ha dado cuenta de la importancia del AeroClúster”, destacó. La industria aeroespacial en Querétaro está integrada por 80 empresas; sin embargo, la membresía cerró el 2018 con 61 socios, de los cuales, el 68% corresponden a empresas, 47.5% grandes y 52.5% pymes, el 24% a la academia y el 8% a gobierno.

“Nuestro objetivo es que el 100% del sector participe, hemos presentado incrementos importantes, para este 2019 esperamos superar la cifra y llegar a un total de 70 agremiados”, detalló el presidente del AeroClúster de Querétaro.

Por su parte, Jorge Gutiérrez de Velasco Rodríguez, secretario del AeroClúster de Querétaro, mencionó que continuarán trabajando en la atracción de nuevas inversiones de la mano del gobierno federal.De acuerdo con la información publicada por la Secretaría de Desarrollo Sustentable, Norteamérica y Europa se posicionaron en 2018 como los principales destinos de exportación en el Estado. Además, indicaron que el 72% de la industria instalada en la región realiza procesos de manufactura, mientras que el 13% trabaja en diseño e ingeniería y el 11% en mantenimiento y reparación.

Entre los principales productos y servicios que ofrece se encuentran: aeroestructuras, tratamientos especiales, maquinado de componentes complejos de aeroestructuras, trenes de aterrizaje y motores, materiales compuestos, diseño e ingeniería, mantenimiento y reparación de aeronaves, así como motores, componentes y materias primas.

Querétaro se encuentra en el top 10 de ciudades aeroespaciales por el mejor desempeño en atracción de inversión extranjera directa, así como en el ranking mundial de ciudades aeroespaciales del futuro 2018/19 elaborado por la publicación fDi Intelligence.

José Antonio Velázquez Solís, director general del AeroClúster de Querétaro, indicó que durante el 2018 se logró la atracción de tres proyectos aeroespaciales que sumaron inversiones por 300 millones de pesos, así como la creación de 200 empleos en el Estado de Querétaro.

Durante su participación, Itziar Larrañaga, tesorera del AeroClúster de Querétaro, compartió estadísticas sobre el desempeño de las pymes que forman parte de la membresía.

 

Ventas anuales: $1.3 musd en 2017, y $1.87 musd en 2018 (+44%)

Exportaciones: 31% en 2017, 36% en 2018

Empleos directos: 58 en 2017, 82 en 2018 (+41%)

Certificaciones: 6 en 2017, 12 en 2018

Inspección de primer artículo: 27 en 2017, 158 en 2018.

Inversión en capacitación: 250 mil pesos (50% con apoyo de la SEDESU)

 

Perspectivas para 2019-2020

El AeroClúster anunció que espera lograr un crecimiento en la membresía, llegando a 70 miembros activos este 2019, además de aumentar a 30 el número de reuniones de comisiones.

“Uno de nuestros objetivos es continuar con el aumento de la facturación por encima de dos dígitos en porcentaje, contando con un crecimiento en el número de empleos directos que genera la industria aeroespacial, así como la atracción de nuevas inversiones aeroespaciales al Estado de Querétaro”, detalló José Antonio Velázquez Solís, director del AeroClúster de Querétaro.

Antes de concluir, Germán Borja Garduño, director de Desarrollo Industrial de la SEDESU, declaró que “este año trabajaremos para traer nuevas empresas a Querétaro, a nivel de Pymes queremos seguir creciendo buscamos mayor competitividad, incrementando el nivel de proveeduría, la generación de empleo, además de exportaciones a países en América del Norte y Europa”.

Original article: www.mexicoindustry.com

By Nick Bunkley at Automotive News

Mexico in 2018 accounted for more than a quarter of General Motors’ estimated North American production for the first time, a proportion that will rise further if the company follows through with plans to end production at five plants in the U.S. and Canada this year.

GM is now Mexico’s largest auto producer, topping Nissan Motor Co. in a year when it reduced output by an estimated 5 percent in the U.S. and an estimated 33 percent in Canada, according to the Automotive News Data Center. GM built 834,414 vehicles in Mexico last year, an increase of 3.6 percent, vs. a 10 percent decrease to an estimated 763,257 for Nissan, which had been No. 1.

GM’s higher Mexican output at a time when it’s eliminating jobs in the U.S. has angered President Donald Trump and other politicians as well as union officials set to negotiate a new contract with the automaker this fall.

“We want those cars here,” Rep. Debbie Dingell, a Michigan Democrat and former GM lobbyist, said in a statement to Automotive News. “That’s why we have to support a public policy environment that encourages production in the U.S.”

Overall production in Mexico fell by 1 percent in 2018. That’s the first time Mexico production has declined since automakers began opening a flurry of plants south of the U.S. border to take advantage of lower costs from nonunion labor and favorable trade agreements with overseas markets.

But production in Mexico is expected to remain stable in the coming years, particularly now that the U.S., Canada and Mexico have agreed in principle to a renegotiated free-trade agreement, said Eric Anderson, a senior analyst with IHS Markit.

Total North American production declined for a second consecutive year. Production was down an estimated 2.6 percent overall, including an estimated 2 percent in the U.S. and an estimated 8.8 percent in Canada.

Just three automakers built more vehicles in the U.S. in 2018: Tesla, up 151 percent; Volkswagen Group, up an estimated 22 percent; and Honda Motor Co., up 2.7 percent. Ford remained the largest U.S. producer, building nearly 2.4 million vehicles domestically vs. about 2.1 million for GM.

In Mexico, Toyota Motor Corp. built 49 percent more Tacoma pickups in Tijuana, and Hyundai-Kia made 33 percent more small cars in Nuevo Leon. Besides those two and GM, the only other automaker to raise output in Mexico was Fiat Chrysler Automobiles — by 369 vehicles. Honda and Ford joined Nissan with double-digit cutbacks.

A GM spokesman said the company hasn’t added any capacity in Mexico for a decade and has no plans to do so. Its 2018 gain there stemmed from falling demand for GM’s U.S.-made cars and surging popularity of crossovers such as the Mexico-made GMC Terrain and the Chevrolet Equinox, which is built in both Mexico and Canada. Production of the Equinox and Terrain in Mexico nearly doubled from 2017, but GM built 11 percent fewer pickups and 74 percent fewer cars in Mexico last year.Mexico represented an estimated 30.8 percent of GM’s 2018 light-truck production and an estimated 25.7 percent of its total output in North America. Ford got 9.7 percent of its North American supply from Mexico but doesn’t build any pickups, SUVs or crossovers there.

GM is poised for another Mexico production increase in 2019 with the addition of the Chevy Blazer, which started coming off the Equinox line at its Ramos Arizpe plant in November.

The decision to make the Blazer in Mexico — reached, company officials say, when sedan sales were higher and GM had less U.S. capacity to spare — has been a particularly sore spot for the UAW, which learned of it on the day GM reduced its Chevy Cruze plant in Lordstown, Ohio, to one daily shift. GM says it will end production in Lordstown after March 1, followed later in the year by assembly plants in Detroit and Oshawa, Ontario, and propulsion plants in Michigan and Maryland. Unifor, the Canadian union that represents Oshawa workers, last week blocked access to the headquarters of GM Canada in protest of the potential plant closure.

GM now top producer in Mexico as industry output declines” was originally published at Automotive News on 1/29/19.

by Luis Rojas

MEXICO CITY, Jan. 23 (Xinhua) — With a growing number of international tourists, Mexico’s aeronautics industry is poised for record growth, experts say.

Relatively a “young” industry in Mexico, the aeronautics industry has seen a sustained annual export growth of about 15 percent since records began in 2004, when exports brought in 1 billion U.S. dollars, according to the Mexican Aerospace Industry Federation (FEMIA).

The export revenue of the sector, which employs some 60,000 people, amounted to about 8.5 billion dollars in 2018, while in 2017, the figure was 7.6 billion dollars with 50,000 employees, attesting to the dynamic growth of the industry, said FEMIA’s Director General Luis Lizcano.

“In less than a decade, Mexico has succeeded in consolidating a competitive structure in this sector… Mexico now ranks the world’s 12th in exports and the exports will continue to grow in every area of an airplane, from the interiors to structures, landing gear, turbines, design and maintenance,” said Lizcano.

Mexico is home to more than 300 industrial plants operated by about 100 domestic and overseas aeronautics companies, most concentrated in its northern states. And as much as 80 percent of its aeronautic products goes to the United States.

“The industry proved to be much more resistant to global ups and downs, and is more stable in economic and financial aspects” than other industries, said FEMIA’s President Felipe de Jesus Sandoval.

“There is an immense, impressive opportunity for the aeronautics industry to develop its capacity as the automotive industry has successfully done,” Sandoval said, adding that the aeronautics industry only takes up 5 percent of the manufacturing chain, compared with 65 percent for the automotive industry.

Daniel Parfait, president of the Mexican branch of Safran, a French multinational aircraft engine maker, said his company is allotting more investment each year to expand capacity, given the solid demand for products. “The outlook is absolutely excellent,” he said.

“We haven’t felt any impact from the trade negotiations between Mexico and its partners, and I think it will stay that way,” he added, referring to last year’s renegotiation of the North American Free Trade Agreement (NAFTA), now called the United States-Mexico-Canada Agreement (USMCA).

Safran operates 20 facilities in Mexico and now employs 13,000 people, up from 4,000 in 2012. The company’s global sales grew 26 percent last year, a percentage that also applies to Mexico, said Parfait.

“The aviation industry is going to double. There is a lot of growth in terms of the number of passengers and production is going to increase,” said Edward Tobon, regional director for Boeing Latin America.

“The biggest supplier for us is Mexico, and in terms of aviation growth, Brazil is also important, but the region is good in general,” he added.

In Mexico, Boeing acquires around 1 trillion aircraft parts each year. The demand from Latin America for Boeing airplanes stand at 1,500, a figure Tobon expects to double over the next 15-20 years.

Latin America expects an annual growth of 3.6 percent in tourism flow to reach 731 million by 2037, up by 371 million from the current figure.

 

SOURCE: http://www.xinhuanet.com/english/2019-01/23/c_137768011.htm

by John Siciliano

The untapped market for U.S. crude oil and natural gas isn’t across the sea in Asia or Europe, but just across the border in Mexico.

More than 50 percent of Mexico’s energy imports now comes from the U.S. as Mexico’s national oil and gas company, Pemex, struggles to reinvest in its own production, according to a new report due out this week from S&P Global Platts that underscores the large stake Mexico has in buying fossil fuels from the United States.

The country also has to move forward with a plan that began two years ago to restructure its energy markets and make them more competitive by attracting more participants from the U.S. and other countries.

President Trump often touts America’s rapid growth as an oil and gas producer and exporter. The White House last week issued a statement touting new Energy Department data that showed the U.S. is on target to become a net natural gas exporter this year, meaning it will ship more of the fuel abroad than it imports. Mexico will play a role in that.

“Pipeline imports of U.S. natural gas make up nearly 60 percent of total Mexican natural gas supply, compared to just 22 percent in 2010,” according to the report’s executive summary reviewed ahead of publication by the Washington Examiner. And that trend isn’t about to change any time soon. “Platts Analytics expects that U.S. natural gas imports will rise to nearly 70 percent of total supply by 2022.”

To meet the demand for natural gas from the U.S., Mexican pipeline import capacity has risen by 145 percent in the last seven years, according to the report. Mexican officials in the U.S. recently pointed out that the increase in natural gas use is driven partly by environmental targets that demand it switch to cleaner-burning natural gas to meet its electricity demand.

But Mexico is a bit of a novice in dealing with the complexities of operating a competitive natural gas market. It only just ramped up a new natural gas trading structure last month as part of its five-year market restructuring plan, according to S&P Global.

“Mexico’s natural gas market is in a massive state of flux,” according to S&P Global. “Gas trading is still in a nascent stage of development after getting off the ground in July.” Natural gas purchasers are being cautious about the new system that is meant to inject more competition into the market. “Gas buyers are hesitant to leave Pemex” and be dependent on another supplier, given that “current supply/demand conditions suggest that areas of supply shortage and/or transportation constraints could experience [higher] premium prices.”

Manufacturers and other industrial natural gas customers “have expressed concern about the recent lifting of natural gas price caps on first-hand sales and the possibility of price spikes in some regions,” according to the report. On the generation side, the cost of electricity has increased at a healthy pace compared to the lower prices in the United States, but that’s because the Mexican market has struggled to keep up with demand for the clean-burning fossil fuel.

Power prices are climbing in Mexico as the natural gas market tightens, with prices rising 56 percent in the first half of the year, the report said.

But those hiccups aren’t stopping U.S. energy companies from wanting to get into the Mexican market. Take ExxonMobil, for example. It “sees Mexico as an expanding market” where demand for fossil-based fuels is projected to grow more than 40 percent over the next 25 years, according to the report. At the same time, U.S. demand is expected to fall by 17 percent. The market for gasoline and diesel will be growing in Mexico, while the U.S. market is shrinking.

Mexican imports of refined U.S. oil products such as gasoline experienced massive growth in the first quarter of 2017.

“Unable to meet growing demand with local production, Mexico is opening its refined products markets to competition,” the report said. “Imports of U.S. petroleum products over the first four months of 2017 were up over 125 percent year-on-year. Mexico is in the process of expanding its refined products pipelines and terminals, and allowing outside access to existing assets.”

That might be the reason why BP opened its first internationally branded retail gas station in Mexico City in May. It is the first of 1,500 new fuel stations that the oil company plans to build in the country.

In contrast to the U.S., some large oil companies like Exxon have completely exited from the gas station business altogether over the last decade.

Meanwhile, Mexico’s Pemex opened its first gas station in the United States about a year and a half ago in Houston. A Pemex official at the time said the station is meant to test the company’s ability to compete in the U.S. It plans to build a fleet of five stations in the Houston area.

“We want to be put to the toughest test,” said José Manuel Carrera Panizzo, the company’s head of business development. “In terms of historic importance, it’s the first time Pemex puts a gas station outside the Mexican borders,” he said. “We’re trying to bring Mexico closer to American consumers … [and] we’re very excited.”

 

Source: http://www.washingtonexaminer.com/mexico-fast-becoming-the-uss-largest-market-for-energy-exports-report-says/article/2631329

 

By Pete Evans

After six consecutive months of record output, Mexico now makes more than one out of every five cars built in North America, new numbers from automotive organization Ward’s shows.

Mexico built 1,926,930 cars in the first half of 2017, almost 16 per cent more than the country cranked out in the first six months of last year. That compares with 1,208,911 Canadian-built vehicles over the same period, a figure which dipped by 2.4 per cent from last year’s level.

The boom means Mexico now makes more cars than the U.S. does, as America built 1,697,551 cars in the first half of 2017. Compared to last year, that figure is down by 17 per cent — about what Mexico’s output has expanded by.

Mexico may now be making more cars than America does, but when larger vehicles such as trucks, vans and SUVs are included, America still leads the region in vehicle production, with 5,812,310 through June — although that figure is down almost five per cent in the past year.

Profit margins on those vehicles tend to be higher, which is why North American automakers build them closer to home, while outsourcing smaller vehicles that aren’t selling as well as they used to.

Last month, Ford announced plans to produce all of its Focuses at a new plant in China, the first time the company will build cars in that country that are destined for sale in North America. Previously, the plan was to build the Focus in Mexico, before changing that plan after pressure from the White House.

And General Motors in January announced it would be cutting 625 jobs at one of its Ontario facilities and moving production to Mexico instead.

U.S. President Donald Trump has vowed to energize American manufacturing in his presidency, and the subject of auto jobs is likely to come up in NAFTA discussions between the three nations slated to start later this summer.

While Trump has rallied support for the Made In America movement, the reality of the North American automotive supply chain makes that basically impossible to achieve, since companies build and assemble hundreds of different components in various countries along the way toward building a single vehicle.

Roughly 40 per cent of the components in a vehicle considered to be made in Mexico in fact come from the U.S., the non-partisan think tank the Center for Automotive Research (CAR) said in a report earlier this year. In Canada, the ratio is about 25 per cent.

A hard-line approach requiring that all cars sold in America be fully made and assembled in America would cost the U.S. about 30,000 jobs, and add thousands of dollars to the price of a vehicle, CAR said.

 

Source: http://www.cbc.ca/news/business/automotive-manufacturing-jobs-1.4220397