Mexico is the 8th largest producer of manufactured goods in the world, and manufacturing is nearly one-fifth of its national productivity. One crucial evolution, as affirmed in Mexico’s July 2018 elections, is that the country has no desire to be a source of cheap labor. The reality is that Mexico could not keep competing on labor costs even if it wanted to, because manufacturing has changed. The local manufacturing sector, with its ongoing modernization and international integration, is now thirsty for human skills and tools that add real value to production. These can be in research and development, HR management, quality control, data optimization, logistics support and the capabilities to implement and manage automation. It has a strong demand for innovative products and services in security, finance and risk management. Of course, it also still requires input components and services to feed the supply chains in automotive, appliance, electronics and aerospace manufacturing.
This report presents a set of needs, challenges and requirements that matches well with a range of capabilities offered by Virginia exporters. Virginia’s service experience with IT, data and process management, and training and education are particular strengths that can complement Mexican manufacturing, as are certain specialized manufacturing processes and materials.