Since its humble beginnings, Mexico’s automotive industry has grown to become the country’s largest manufacturing sector. With automotive production estimated at over 3.7 million units in the year 2020, the AMIA (Mexican Automotive Industry Association) estimates that Mexico will become the fifth-largest automotive producer in the world by 2025. It’s no wonder that automotive suppliers and manufacturers are racing to take part in the booming industry. Vehicle manufacturers from Audi and BMW to Ford, General Motors, and Volkswagen have established operations in the country.
In this environment it is an absolute necessity that the automotive supply chain in Mexico step up its game. Strengthening the auto industry supply chain’s capacity has become a fundamentally important consideration and concern of OEMs, who previously utilized Asian suppliers, that are looking at nearshore suppliers. This means that auto parts manufacturers will have to associate themselves with logistics service providers that can afford them the support that will enable them to keep production lines up and running without pause, to reduce the time that it takes to manufacture their products and, subsequently, to transport them to market, as well as to reduce the costs associated with doing these things. Logistics service providers in Mexico that can help bridge any gaps that constitute barriers to achieving these ends will be deemed to be invaluable partners by the companies with which they conduct business and sought out by companies with which they currently do not.
In addition to helping manufacturers to reduce their production costs by providing reliable service, a superior Mexican logistics operation is one that continuously seeks to reduce the costs of their own operations. Part of any savings gained through the constant efforts of cost conscious service providers can be passed down to OEMs and auto parts manufacturers in the automotive supply chain in Mexico that may make up much of their base of customers.
sources:
https://www.tecma.com/industries/automotive/
https://tetakawi.com/industries/automotive/
https://www.ibisworld.com/mx/industry/auto-parts-manufacturing/44/
