Industry profile

Electrical industry in Mexico

The electrical industry comprises companies that manufacture home appliances, as well as equipment and accessories to transmit, distribute and control electric power (transformers, generators, current switches, regulators, engines).

The electrical industry success is due to Mexico?s competitive advantages, which have attracted investments from leading companies, strengthening the country?s position as one of the top producers.

Between 2003 and 2010, the GDP of the electrical industry grew at a compound annual rate of 7.9%, going from 3.865 billion dollars to 6.589 billion dollars. According to INEGI, in 2010, the electrical industry GDP accounted for 0.6% of the national GDP.

Mexico has a leading position as exporter of split-door refrigerator/freezers and is the third exporter of 1,500 W vacuum cleaners; both facts are examples of the country?s success in the industry international trade. In 2010, Mexico exported 21.201 billion dollars from the electrical industry, holding a trade surplus. From 2003 to 2010, the exports? compound annual growth rate was of 9.5%.

According to Global Trade Atlas, in 2010 the leading export destinations of the Mexican electrical industry were the United States and Canada, which together accounted for 92% of the total amount. The rest was mainly destined to Colombia, Brazil and the Netherlands. The main electrical products exported by Mexico were split-door refrigerator/freezers, air conditioning equipment and lamps and other electric lighting devices.

Attraction of Foreign Direct Investment

According to the Ministry of Economy (SE), between 2000 and 2010, the accumulated foreign direct investment in the electrical industry reached 7.017 billion dollars, mainly in the manufacture of electrical materials and accessories, as well as the production and assembly of home appliances.

In 2010 alone, foreign direct investment in this industry reached 504 million dollars. The United States, the Netherlands, France, Costa Rica and Germany were the main countries of origin.

Companies established in Mexico

There are more than 1200 economic units in Mexico that belong to the electrical industry, from which close to 260 focus on home appliances. Manufacturing companies are located mainly in Baja California, Chihuahua, Nuevo León, the State of Mexico and Tamaulipas, employing approximately 160,500 people around the country, according to INEGI.

A few of the internationally renowned companies that are established in Mexico are Panasonic, LG Electronics, Whirlpool, AB Electrolux, ABB Ltd, Cooper Industries, Eaton Corporation and General Electric.

Strengths of the Mexican Electrical Industry

•Talent.According to ANUIES, there are more than 790 thousand higher education students enrolled in engineering and technology programs. In addition, every year more than 90 thousand students graduate from those programs.

•Experience.The first plants of the industry were established in Mexico at the end of the 1950s. Over five decades of experience have led to excellent technical and administrative capacities.

•Logistics Access.Important advantages can be gained from Mexico?s closeness to the North American market