Manufacturing exceeds pre-pandemic levels in Nuevo León and Guanajuato
El Economista | October 20, 2021 |

Of the states with the highest value of manufacturing production in the country, Nuevo León and Guanajuato were the only ones that managed to exceed the levels registered before the Covid-19 pandemic, according to data from the National Institute of Statistics and Geography (Inegi), during the first eight months of 2021.

Coahuila, Edomex, Jalisco and Puebla, still ravaged by Covid-19, complete the list of the largest manufacturing producers.

Nuevo León was the entity with the highest value in manufacturing production, with 780 thousand 953 million current pesos in the first eight months of 2021, an amount 4.9% higher, in real terms, than the record for the same period of 2019, the period prior to the pandemic.

This means that the border state has already overcome the damage caused by the health contingency.

It is followed by Coahuila, with a value of 671 thousand 758 million pesos, but 4.4% lower than that reported two years ago. The State of Mexico completes the first three places by showing 633 thousand 228 million of manufacturing production and a contraction of -10.1 percent.

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The fourth national place was for Guanajuato, with 569 thousand 010 million pesos, a figure 3.1% higher than the production value of the first eight months of 2019.

While Jalisco and Puebla finished in the top 6, with amounts of 363 thousand 081 and 306 thousand 219 million pesos, respectively. Both states are below pre-pandemic levels, with variations of -4.9 and -13.6%, in the order referred to.

In fact, the Puebla entity obtained the most pronounced decrease in this group of sub-nationals, derived from the fact that its economic vocation is automotive, a sector affected by the global shortage of inputs that has impacted on production processes, a consequence of Covid-19 in the demand behavior.

As can be seen in this analysis of the six entities that contributed 57.2% of the total value of manufacturing in Mexico, only Nuevo León and Guanajuato reached their prepandemic manufacturing thresholds.

In Nuevo León, its dynamism came from its main industries, since of the five with the highest production value, four, representing 43.9% of the total, managed to grow compared to the accumulated from January to August 2019: basic metal industries (41.8% with inflationary adjustment), metal products (46.7%), food industry (9.9%) and manufacture of accessories, electrical appliances and electrical power generation equipment (24.8 percent).

Of interest: The second Kloeckner Metals plant is built in Querétaro

Although the focus of attention is focused, as in most of the Mexican territory, on the manufacture of transportation equipment, which is made up particularly by the automotive industry. This subsector is still 19.8% below the production of two years ago.

For Guanajuato, unlike what happens in the rest of the country, its strength was transportation equipment, with a 51.7% share of total manufacturing and an increase of 9.3 percent.

In addition, the other two industries in importance also had increases: food (7.3%) and plastic and rubber (9.2 percent).

Meanwhile, the production value of Mexican manufacturing reached 5.90 billion pesos in the first eight months of 2021, 1.2% less than the same period of 2019.

This decrease was mainly due to the -11.9% contraction in transportation equipment, the main manufacturing subsector with a participation of 31.1% of the total value.

Within this subsector, the collapses of its most important branches stand out: automobile and truck manufacturing (-13.0% real decrease compared to 2019), auto parts manufacturing (-9.3%) and truck and tractor-trailer manufacturing (-7.8%) ; together they contributed 97.2% of the sectoral total.

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