Auto parts from Canada to Mexico migrate due to labor availability
Mexicoxport | May 03, 2022 |

The value of auto parts production in Canada fell almost 7% annually last January, in part because companies from that country are migrating to the southern United States and, above all, to the lowlands and northern Mexico, highlighted Alberto Bustamante , Director General of the INA.

"Canadian companies are coming to Mexico, mainly to Nuevo León, Coahuila, and the bajío to Guanajuato y San Luis Potosí”, he said.

A large number of auto parts that are manufactured require more processes done by people than by machines, which is why Mexico is a destination to develop them.

Check here: UPL invests 11 million dollars in Coahuila for biosolutions

“Most auto parts are labor intensive, so in Canada it is very expensive to pay labor because the climate, conditions and wages are different, and in Mexico there are more people who want to work in the automotive sector,” Bustamante explained. .

On the other hand, in Canada some processes have been lost because robotization and automation are more present.

Harnesses, wires and cables are the main auto parts that Mexico exports, followed by stamped parts, body accessories, seats and their parts, according to INA.

In addition, Mexico has the advantage of being close to Texas, which is the distribution center for the United States, one of Canada's customers.

Of interest: RR Donnelley renews contract with Fibra Nova in Ciudad Juárez

"If the hub were in the north of the United States, perhaps the Canadian plants would not move to Mexico," explained the manager.

Since the North American Free Trade Agreement (NAFTA) came into force, Mexico has been able to take advantage of it, which is why it is now the second-largest producer of auto parts in the North American region, he added.

In Solili you can consult industrial warehouses available in Monterrey, Querétaro and Mexicali

Original note

Stay up to date with the most important news to the real estate

Subscribe Solili Newsletter

  
Advertisinginfo