Mexico's Economic Forecast for 2014

Mexico's Economic Forecast for 2014

By: Leanne Gelish

Posted in: General

According to the Mexico Regional Sectorial Outlook economic analysis written by the Spanish bank BBVA, the manufacturing market in Mexico will be steady during the first quarter of 2014 and is predicted to sustain growth throughout the first half of 2014. This news is relevant to those manufacturers looking to find alternative low cost manufacturing locales.

The study highlighted that the automotive and aeronautic manufacturing sectors will be the pillars of the Mexican economy in the first quarter. With government regulations loosening, electronic manufacturing and telecommunication equipment are also going to see steady growth in 2014.

 At the same time, cooperation and integration of manufacturing interests in the U.S. and Mexico has benefited both countries and strengthened production on either side of the border.

Manufacturing in Mexico linked to U.S. Near-Shoring Effort

Many global economies are still recovering from the economic recession of 2008, but there is promise, especially in the Manufacturing sector.  In the United States, manufacturing is expected to increase by 3 percent as many companies look to re-shore from China. In the European Union, there is expected to be growth as well, albeit, much less than the United States, at 1.1 percent. For the Mexican Economy, this growth helps their exports. The BBVA report predicts manufacturing in Mexico will increase by 3.2 percent, while exports for durable goods and services are predicted to rise by 4 percent. This, in conjunction with many manufacturers re-shoring their plants from Asia, is promising to the Mexican government.

What is the Impact?

With rising costs in China continuing to impact manufacturers, Mexico continues to be a viable near-shore solution. As an established manufacturer in Tijuana, Mexico, Tornik/EMS Mexico, a contract electronics manufacturer, has experienced first-hand the benefits of manufacturing in a low cost region. With steady labor wages, and affordable education provided by the government, Mexico is a great solution for manufacturing needs.