Entrada Group Survey: Mexican Automotive Supply Base is Essential, but Quality Concerns Remain
Respondents Concerned about Security, Lack of “Mexico Know-How” and Talent Shortages
April 19, 2016 (Austin, TX) – While 90% of automotive manufacturers in Mexico believe having a strong, reliable supply base is “very important,” 23% of them rate the quality of that supply base as “poor.” These are two of the key findings of Entrada Group’s report “Mexico’s Automotive Manufacturing — Incentives & Barriers.”
While respondents currently lacking Mexico operations are deterred by a broad array of barriers, no single concern dominates, according to the survey findings of Entrada Group — a US-based company that helps manufacturers quickly establish highly productive operations in Mexico.
Other Key Findings Include:
- 17% of respondents labeled the quality of their local/regional Mexico supply base as “excellent,” suggesting significant room for improvement.
- 45% of respondents not currently operating in Mexico cited “lack of knowledge about the regions of Mexico” as a main deterrent for establishing operations in the country.
“The benefits that Mexico offers to manufacturers are clear: Competitive wages, growth prospects thanks to an open-trade philosophy, reliable infrastructure, proximity to the U.S., an educated workforce and a growing supplier base. These factors combine to make Mexico a location any manufacturer seeking growth has to consider,” added Doug Donahue, Vice President, Business Development, Entrada Group.
Respondents also indicated they produce for customers from a range of industries, not exclusively within one sector. Mexico hosts a strong network of OEMs and large Tier 1 suppliers across a wide range of industries. In other words, suppliers still contemplating a production footprint in Mexico will find opportunities in many sectors (industrial, aerospace, medical device, etc.).
Note To Journalists: To obtain a copy of the complete report, please email Nick Mitsis at Nick.Mitsis@machmediagroup.com; We encourage your readers to download the report from entradagroup.com/resources.
Phone (US): +1 202-286-6329
About Entrada Group
For nearly two decades, Entrada Group has been guiding manufacturers from around the world in establishing their own operational footprint in Mexico in order to provide a competitive advantage. Entrada’s turnkey system offers a fast track to the benefits of Mexico and allows our clients to fully focus on growth. Through Entrada’s near-border and central Mexico manufacturing campuses, along with the support of our shared services teams, manufacturers are able to meet their Mexican corporate obligations, minimize costs and lessen exposure to risk.