, , , ,

Unveiling the Future: The Evolving Landscape of the IT Industry in Mexico!

Mexico has emerged as a key player in the global Information Technology (IT) industry, offering a range of opportunities for companies and professionals looking to tap into a growing market.

With its highly educated workforce, favourable business environment, strategic location, and vibrant startup culture, Mexico is poised to play a significant role in shaping the future of the IT sector.

In this article, we will explore the key factors that make Mexico an attractive destination for IT workers and why the future of this industry in Mexico is bright.

Mexico’s highly educated workforce is one of the most important reasons for its success in the IT industry. Mexico has a growing pool of highly skilled professionals with expertise in software development, data analysis, and other vital areas of the IT industry. Many of these professionals have received a world-class education. They are eager to apply their skills to a rapidly growing market. The education quality in Mexico is also improving since universities now offer computer science, engineering, and other IT-related programs that prepare students to enter the workforce with the skills they need to succeed.

Another factor that makes Mexico an attractive destination for the IT industry is its favourable business environment. Mexico has a strong commitment to free trade and open markets. It has established a supportive ecosystem for companies investing in the IT industry. This includes tax incentives, favourable labour laws, and a supportive regulatory environment encouraging investment and innovation. Mexico also has a thriving entrepreneurial culture, with many young entrepreneurs starting new companies in the IT industry. This entrepreneurial spirit is helping to drive growth and modernization in the IT industry, positioning Mexico as a leading player in the global market for technology and innovation.

Mexico’s strategic geographic location is another critical factor that makes it an attractive destination for the IT industry. The country is close to the United States, one of the world’s largest markets for IT products and services. It has a well-developed transportation and telecommunications infrastructure that makes it easy to connect with other markets in North America, South America, and beyond. This location also makes it easier for companies to access a large pool of skilled talent and take advantage of the many resources available in Mexico, such as low-cost labour, tax incentives, and a vibrant business environment.

The Mexican government has invested significantly in the IT industry, recognizing its potential to drive economic growth and create jobs. The government has implemented several initiatives to support the IT industry, such as tax incentives, grants, and other forms of support. These investments are helping to drive innovation and growth in the IT industry, positioning Mexico as a leader in the field.

Mexico is also home to a thriving startup culture, with many young entrepreneurs creating pioneering companies in the IT industry. This entrepreneurial spirit is helping to drive growth and innovation in the IT industry. Many of these startups focus on developing cutting-edge technologies, such as artificial intelligence, blockchain, and the Internet of Things, transforming businesses’ operations and competition.

In conclusion, the future of the IT industry in Mexico is bright, with a growing pool of highly skilled professionals, a favourable business environment, a strategic location, and a thriving startup culture. The Mexican government’s investment in the IT industry and its commitment to free trade and open markets are helping to drive innovation and growth. This project will promote Mexico as a key player in technology and creativity in the global marketplace. With its many advantages, Mexico is well-positioned to play a major role in shaping the future of the IT industry and become a leading centre for originality and development in the years to come.

If you want to travel to Mexico, check out the visa and vaccination requirements to enter this country. Whether you are a seasoned tech professional or a student just starting out in the field, Mexico is a destination that will inspire and excite you, offering opportunities for growth, learning, and adventure.

 

Source: DazeInfo Briefs

/by
, , ,

Mexico is US’s largest trading partner in 2023’s 1st quarter

Mexico was the United States’ largest trading partner in the first quarter of 2023, with exports of US $115.5 billion, according to figures released by the U.S Census office on Thursday.

​​Figures for Q1 2023 showed that total trade between the two countries (a combined total of imports and exports) was US $196.7 billion, an 8% increase over the same period in 2022.

In March alone, goods from Mexico accounted for 16.1% of U.S. imports — beating out Canada (15.5%) and China (10.1%) — for a total of US $42.8 billion. The figure represents annual growth of 5.9%.

China has topped the list in Q1 of each year since 2009 — with the exception of 2020, when the Covid-19 pandemic saw Mexico take the top spot. But in March, China saw exports drop 35% to US $30.8 billion.

Last year’s top whole-year trading partner, Canada, saw a 7.2% year-on-year drop in exports to the U.S market in March, registering only US $37.6 billion.

U.S. exports to Mexico also rose 2.6%, to US $29.3 billion in March — despite a year-on-year fall of 0.4% compared to 2022. Despite the rise, the U.S. still maintains a US $97 billion trade deficit with Mexico, or 12%, said the Economic Commission for Latin America. This figure has contracted considerably, however, previously standing at 39% in 2020.

The recent “super peso” and weakened U.S. dollar have created favorable conditions for export, but credit analysts Moody’s warned that there was some uncertainty surrounding global solvency for financial institutions, as well as volatility in the bond market that could lead to further fluctuations in exchange rates.

Mexico has become a nearshoring hub, with businesses from Asia rushing to set up operations in the country, taking advantage of the favorable investment conditions and proximity to the North American markets. This has led to a boom in manufacturing, especially in the automobile industry, but also increasingly in data, computing and home electronic goods, which are often exported to the United States.

Top exports from Mexico in 2023 included refined petroleum, auto parts and accessories, office machinery and integrated circuits, according to the Observatory of Economic Complexity.

 

Source: Mexico News Daily

/by
, , , , ,

Nearshoring and Beyond: Hot Topics for Automotive Companies Operating in Mexico

As manufacturing in Mexico returns to pre-pandemic levels, several recent legal developments may affect those operations. Manufacturers, particularly those in the automotive industry, need to consider new Mexican labor regulations, the recent interpretation of the United States-Mexico-Canada Agreement´s (USMCA) Automotive Rules of Origin, and new requirements concerning transparency of ownership.

Recovery of Automotive Manufacturing in Mexico

North American manufacturers of sophisticated and highly-regulated products that are to be delivered Just-in-Time, such as automotive or aerospace products, benefit from reliable, close-to-home suppliers.

In the USMCA manufacturing region, Mexico has a number of competitive advantages to manufacture labor intensive and sophisticated products—namely several decades as part of North America’s complex supply chains, significant trade promotion programs, and a large number of Free Trade Agreements to name a few. Such advantages are reinforced through USMCA’s market access certainty to both the U.S. and Canada.

Although Mexico’s economy faced extreme difficulties due to the COVID-19 pandemic as there was no governmental program to boost its economy, the country’s resilient manufacturing sector already has surpassed pre-pandemic levels. This boost in manufacturing can be partially attributed to nearshoring of manufacturers into Mexico—many in the automotive industry—in order to be closer to the U.S. and Canada markets. This nearshoring trend has triggered the arrival of new foreign direct investment (FDI).

The Mexican Ministry of Economy recently reported that Mexico captured US$35.29 billion in FDI during 2022, up from $31.54 billion in 2021. Manufacturing reigns as the most influential sector in that increase, accounting for 36% of the country’s total FDI, with the U.S. and Canada standing out as Mexico’s two main trading partners. The Ministry of Economy also noted that automotive part manufacturers were among the largest recipients of foreign investment.1

According to 2022 data, the FDI in the automotive manufacturing sector has not yet recovered to pre-pandemic levels. However, there are reasons to be optimistic that this will change in the near future due to the USMCA’s market attractiveness and the natural advantages of manufacturing in Mexico, such as its highly specialized labor force and its geographic proximity to the U.S.

In anticipation of Mexico’s continued growth as a manufacturing hub for U.S. automotive companies, the following are recent updates and trends in Mexico that your company needs to consider when relocating or operating in the country.

Increase of Labor Benefits

The Lopez-Obrador administration has pushed for increasing labor benefits to employees in Mexico, which investors in Mexican manufacturing should take into account when making their budgets and economic projections. The following are the most recent and relevant changes to existing labor rules:

Vacations

Effective January 1, 2023, the Federal Labor Law increased vacation days in Mexico. Before this amendment, employees had a minimum of six (6) working days’ vacation period per year of service. The new rule increases the period to a minimum of twelve (12) working days per year of service, which will grow by two (2) days per year up until the employee is entitled to twenty (20) working days vacations. As from the sixth year of service, the period shall increase by two (2) working days per every five (5) years of service.

Minimum Wage

Beginning January 1, 2023, the minimum wage for Mexican employees increased 20%. Even though most employees receive more than minimum wage as a starting salary, this increase is expected to impact even Mexican companies that pay above minimum wage, as they commonly index salaries to a minimum wage reference. The effect of rising minimum wage on salaries will become clearer when the common yearly salary revision takes place.

Pension Funds

According to a 2020 amendment to the Mexican Social Security Law, companies’ mandatory contributions to one of the components of employees’ pension funds shall progressively increase from the current 3.15% of the employee salary to 11.87%. This increase shall occur progressively from 2023 up until 2030; during 2023, employers’ contribution will range from 3.15% to 4.24%, depending on the employee’s salary.

Mandatory Legitimization of Collective Labor Contracts

May 1, 2023 is the maturity date for all existing collective bargaining agreements across Mexico to be legitimized through the express support of a majority of the workers covered by the relevant agreement (following a carefully staged process).  Legitimization efforts have long been underway as per the relevant rules issued May 1, 2019. However, it is expected that 80% to 90% of current collective labor contracts will not meet the legitimization threshold and, consequently, will be automatically terminated.

When such agreements are terminated, individual labor contracts will be automatically created for every worker; said individual contracts will incorporate the terms contained in the then-terminated collective labor contracts that are superior to the minimum standards established by Mexican laws.2 This measure intended for individual workers to continue under the same labor conditions, though no longer under a collective labor contract.

The lack of a collective labor agreement—the long standing status quo in the country—likely will bring restlessness in the workforce. Though workers’ current rights will be preserved by the individual labor contracts, Mexican workers will need to decide whether to enter into a new collective labor agreement sooner rather than later.

 

Source: The National Law Review

/by
, , ,

Ofrecen oportunidades de negocio en Proveedor Automotriz 2023

El 31 de enero del presente año, el gobernador del estado de Nuevo León, Samuel García, hizo el lanzamiento del evento “Americas´ Mobility of the Future“.

Este evento, organizado por Hannover Fairs México, el Clúster Automotriz de Nuevo León A.C. (CLAUT) y Nuevo León 4.0, con el apoyo del Gobierno del Estado de Nuevo León, es el primer evento en Latinoamérica dedicado a temáticas de movilidad del futuro, transportación inteligente, infraestructura y logística sustentable, y ha sido creado con el objetivo de ser un catalizador para convertir a Nuevo León en un hub de tecnología para la industria automotriz del país.

Con la reciente noticia de la inversión de Tesla para construir su primera Gigafactory de Latinoamérica en Nuevo León, y la consecuente instalación de sus principales proveedores en la región, se presentó la necesidad de crear una cadena de suministro mucho más sólida en cuanto a capacidad y calidad se refiere.

Ante este contexto, el CLAUT ofrecerá a los proveedores y compradores de la industria, la oportunidad de reunirse y hablar de negocios en el evento Proveedor Automotriz 2023, el cual se realizará en paralelo a Americas´ Mobility of the Future, el 6 y 7 de junio en Cintermex. 

Proveedor Automotriz es organizado desde el 2011 por el organismo en sinergia con la Secretaría de Economía estatal y actualmente es reconocido como el evento de proveeduría automotriz más eficaz de México, siendo una excelente oportunidad para generar nuevos negocios para todas las empresas que desean sumarse a la cadena de suministro automotriz.

Este año, el evento de Proveedor Automotriz contará un área de exposición mayor que cualquier edición anterior y con la premisa de traer a más de 1500 tomadores de decisión de la industria automotriz con casi 500 empresas OEM, Tier 1, Tier 2 y Tier 3.

Miguel Bravo, director del evento y líder de Desarrollo de Proveedores en el Cluster Automotriz de Nuevo León, comentó que la prioridad es llevar a cabo citas de negocio de calidad y para eso han contratado a la empresa finesa Brella, que es uno de los mejores proveedores en el mercado mundial para citas B2B.

“Después de cada evento se realiza un seguimiento detallado de la efectividad de las reuniones B2B y se sabe que dos de cada tres citas avanzan a un RFQ y que una de cada 10 citas de negocio culminan en una orden de compra, lo cual significa que el porcentaje de efectividad es casi del 10%, siendo por mucho el evento de negocios más efectivo realizado en el país”.

Al igual que la edición anterior, este año se contará con el apoyo de la región de Quebec, Canadá, a través de su organismo Invest Quebec, quien estará presente con una delegación de más de 10 proveedores con procesos relacionados a la fabricación del vehículo eléctrico al ser ésta una región potencia en recursos naturales y de investigación para el aluminio y litio.

Source: Elenne Castro, Mexico Industry

/by
, , , ,

Mexico, India to Collaborate in Innovative Binational Project

In March 2023, Marcelo Ebrard, Minister of Foreign Affairs, went to New Delhi, India, to advance innovative binational projects in the fields of aerospace, lithium, biotechnology, water and vaccines, before opening a Mexican Consulate in Mumbai. An agreement was signed between the Ministry of Foreign Affairs, represented by Ebrard, and the Council of Scientific and Industrial Research (CSIR), represented by Dr.Jitendra Singh, India’s Minister of Science and Technology.

“Both countries will identify priority projects for development, including hydraulic management, electromobility and production of vaccines at low cost. Once the funding is determined, research institutes will be called upon to implement the project,” said Ebrard. The agreement also considers a fund of US$1 million, financed by both countries of US$500,000 each.

Both Mexico and India are part of the G20, which plays an important role in shaping and strengthening global architecture and governance on all major international economic issues. The collaboration between G20 countries on lithium research is a move in the right direction as lithium can help Mexico with its energy transition due to its role in rechargeable batteries for e-vehicles.

In February 2023, the Geological Survey of India (GSI) stated the discovery of 5.9Mt of Lithium deposits in the Salal-Haimana area of Jammu & Kashmir’s Reasi District. During his visit, Ebrard encouraged Sun Mobility, a company known for building energy infrastructure for electric vehicles, to expand into Mexico. The company tweeted, “We had the pleasure of demonstrating our battery swapping solution to @m_ebrard … during his visit to Delhi. It is highly motivating for us to receive such a positive response for our “Made in India” solutions for the world.”

Regarding vaccines, India has been named the “Pharmacy of the World” for not only successfully carrying out the largest vaccination campaign during the COVID-19 pandemic but also for providing vaccines to over 100 countries under its Vaccine Maitri initiative. Both India and Mexico will benefit from this collaboration, as manufacturing becomes more regionalized.

Source: Anmol Notwani, Mexico Business

/by
, , ,

Chihuahua moves forward in electromobility

CHIHUAHUA – Given the current global restructuring of value chains, nearshoring represents a growth opportunity for the coming years, and the state of Chihuahua is looking to diversify and lead in the industry.

Although Chihuahua is making progress to position itself as a pioneer in electromobility, challenges remain, such as the development of public policies, infrastructure, labor force, incentives and greater promotion.

Experts explained that given the current global restructuring of value chains, nearshoring represents an opportunity for growth in the coming years, which is why the state seeks to diversify and lead in the electromobility industry.

For Francisco González, president of the National Auto Parts Industry, the generation of talent and the development of infrastructure at a national and local level to detonate this type of projects are priorities that states must keep in mind, because with the arrival of new companies and future requirements (such as charging stations) they will be necessary.

“The concrete challenges are to have a clear idea of the development of people, the development of talent for electromobility. To have good universities, good preparation. What we require at the state level is the facilitation of charging stations, having the possibility of infrastructure and greater accessibility,” he said.

In an interview with El Economista, María Angélica Granados Trespalacios, head of Chihuahua’s Department of Innovation and Economic Development, explained that the local government is developing short, medium and long-term plans for infrastructure.

In energy matters, she recalled, the State Agency for Energy Development was recently created to work with the private sector to develop the infrastructure required by new companies; Chihuahua is the city with the highest demand.

 

Source: Mexico Now

/by
, ,

Harán crecer a 12 empresas juarenses

Con la participación de 12 empresas de distintos rubros arrancó ayer la octava generación de The Bridge Accelerator, programa que tiene por objetivo el desarrollo de proveeduría regional.

En la inauguración del evento se contó con la ponencia de Eduardo Rodríguez Dávalos, fundador de Grupo La Nogalera, empresa juarense dedicada a la rama de la agroindustria en Jiménez, quien compartió a los cursantes que tratar al factor humano con paciencia y con convicción asegurará el éxito de sus compañías.

“Siempre hay que tener un enfoque humano y el trato a las personas por convicción, no por conveniencia; ése el motivo por el cual hemos logrado tener el éxito que tenemos hasta ahorita”, expresó.

Sin embargo, agregó que después de 23 años ha pasado por muchas adversidades y retos, como es satisfacer a todos los colaboradores, que incluye tanto al equipo de trabajo, los clientes y los proveedores, que son los productores de nueces.

Otros de los desafíos son tener acceso a los recursos para operar, por lo que invitó a los participantes a aprovechar las herramientas que les ofrece The Bridge Accelerator.

“La evolución de La Nogalera, empresa local e internacional, sirve como inspiración a los empresarios de nuestra región para buscar mejorar sus modelos de negocios y trascender fronteras”, comentó Omar Saucedo, gerente de Microsoft TechSpark, una de las compañías que hacen posible este programa binacional.

IPS Techology, IMTECH Software, Grupo AG Tech Solutions, GlezCo Express, Paso del Norte Reciclado, Coplasco, Laser Innovation, Magenta Registro, Servicio Médico Empresarial de la Frontera, NAI México, Acces Group y Recilogic son las empresas que durante 12 semanas serán capacitadas para hacer crecer sus negocios.

“Ésta es la octava generación, llevamos ya 78 Pymes que han pasado por este programa, con ventas por 61 millones de dólares y la creación de más de 500 nuevos empleos”, dijo Saucedo.

 

Source: El Diario

/by

CFE will invest US$24 million in Aguascalientes

AGUASCALIENTES – In a meeting with the Aguascalientes State Business Council (CEEA), the Federal Electricity Commission (CFE) assured that the electricity supply is guaranteed in the state, and this year and next year alone, an investment of US$24 million in electricity infrastructure is planned.

The investment will be focused on areas with less power, which will be equipped with substations, transmission lines, capacitor banks and high voltage lines.

In the meantime, there is sufficient load capacity in the State, but investment in new infrastructure will continue.

It was explained that in view of the expected arrival of new investments in the State, the CFE has feasibility studies to grant the required load capacity, as explained.

It was also agreed to maintain a direct line of communication between the members of the CEEA and the CFE for the timely attention of any report of power supply failure.

During the meeting attended by the members of the Council headed by Antonio Robledo Sánchez and the CFE Superintendent, José Francisco Medina Lucio, it was informed that in Aguascalientes there are more than 600,000 users of the electric energy service; 90 percent are domestic users and the rest are industrial users.

The businessmen were also informed of the willingness to attend to supply failures, 90 percent of which are attributed to road accidents -crashes against poles and transformers- especially on weekends.

For their part, the businessmen expressed the importance of attending to the failures in a timely manner, since every minute that a blackout lasts generates a great economic impact on the production lines.

 

Source: Mexico Now

/by
, , ,

Mexico seeks to build lithium battery industrial park

NUEVO LEON – The Mexican government seeks to create an industrial park for electric batteries (Lithium), alongside Tesla’s gigafactory in Nuevo Leon.

According to Martha Delgado, Undersecretary for Multilateral Affairs and Human Rights of the Ministry of Foreign Affairs (SRE), the park will house different manufacturers, including Elon Musk’s firm.

“The government plan estimates that the battery industrial park will be built in the center of the country, since it is a strategic location,” she added.

This location was chosen to supply the automotive industry plants located in Puebla, Queretaro, State of Mexico and the Bajio region.

The undersecretary highlighted the state of Hidalgo as one of the entities that would benefit from the project. However, according to the Mexican Association of the Automotive Industry (AMIA), Hidalgo does not have any light vehicle manufacturing plants.

It is worth mentioning that recently President Andres Manuel Lopez Obrador noted the possibility of investments in Sonora or Hidalgo related to lithium.

Regarding this, Martha Delgado said that there is an incentive issue that is being discussed with Tesla and that Mexico is reviewing with the Treasury.

“The United States has high subsidies for electric battery factories. For this reason, the Foreign Ministry and the Treasury are working on putting together an “interesting” incentive package in order to allow Tesla to establish itself in the country,” added Martha Delgado.

For his part, Mexico’s Secretary of Finance, Rogelio Ramírez de la O, said that Tesla’s proposal consists of matching U.S. tax incentives under the Inflation Reduction Act (IRA), estimated at US$369 billion for the climate change and electromobility sector.

However, the Mexican government refused to match the tax incentives.

 

Source: Mexico Now

/by
, , , , ,

JPMorgan Says Bright Mexico Outlook Contrasts With Brazil Gloom

Tesla plant, high demand boost optimism on Mexican economy
Bank says high interest rates will drag down Brazilian economy

 

Latin America’s top two economies are moving in opposite directions, with export and investment growth propelling Mexico while Brazil is set to fall into recession, according to JPMorgan Chase & Co.

“Mexico is the silver lining in Latin America as it remains on a strong footing, on the back of resilient external demand, domestic consumption, and the catching up in fixed investment,” JPMorgan economists including Cassiana Fernandez and Gabriel Lozano wrote in a report published Monday.

In contrast, “Brazil, which was one of the first economies to tighten policy, will also be among the first to see a recession,” the economists wrote.

Mexico’s Dec. Fixed Investment Rises Up Most in 15 Months

Analysts became more optimistic about the Mexican economy after Tesla Inc. announced the construction of a new factory in Monterrey, an industrial city near the border with Texas, that’s likely to bring in billions of dollars of investment. Meanwhile, Brazil’s worse-than-expected end to 2022, when the economy shrank 0.2% during the final quarter, raised concerns that high interest rates will be a big drag on growth this year.

The economists don’t see Brazil’s central bank cutting rates “anytime soon,” unless there’s a deeper fall in economic activity.

“Looking ahead, we expect some economic recovery during the year – aided by a more solid external outlook particularly with China re-opening strength – but with growth remaining below potential up until the end of 2024,” they wrote.

On Monday, Mexico’s statistics institute reported that gross fixed investment grew 9.4% in December compared to the previous year, the fastest expansion since Sept. 2021. Shipments of vehicles, one of Mexico’s main exporting products, grew over 14% in February to 230,484 units, the institute said.

Source: Andrew Rosati, Bloomberg 

/by