2012 Mexico’s Manufacturing Supply Chain Summit
By Adina Moloman
Sources: Mexico’s Manufacturing Supply Chain Summit 2012
Today and tomorrow (26-27 April 2012) is taking place an important manufacturing event, Mexico’s Manufacturing Supply Chain Summit 2012 at El Paso, Texas. The event is strategically located at the border town with Ciudad Juarez, giving the opportunity for Mexico Manufacturers to meet important transnational companies and establish new contacts with the purpose of becoming potential suppliers of them.
The event is pretending to offer much more, not only the opportunity of establishing new contacts and identifies new business; through conference sessions and case studies will be revealed the latest technology and developments in manufacturing from OEM’S and on the other hand the transnational companies will be able to understand the capabilities, infrastructure and strategic advantage that can get by establishing a more close relationship with Mexican suppliers. This can lead to a mutual benefit both for multinationals companies which are interesting in reducing costs of operations and also for local suppliers that generates local economic growth.
Automotive, aerospace, electronics companies are attending the event such as: Cardinal Health, GM, LEVITON, DELPFI, Cooper, VW, Tyco, Electrolux, Johnson control, Bussmann, Bombardier, Caldwell, GE, Index, Toro, Plexus, Foxconn, Nams, Viasystems, Superior Essex, etc. It’s also included a plant tour for Friday, April 27 at Electrolux, Delphi and ViaSystems transnational companies located at the border.
Mexico Maquiladora Industry is going through an optimistic situation where is expecting a boom in automotive, aerospace, electronics, electrical and medical sectors, and so the need to expand their supply base.
As the cost of manufacturing in China rises, is forcing transnational corporation to rethink their global strategies and relocate. In the next five years, industry projects that China’s wage cost will increase by 80 percent, and even if this will be bellow the Mexican wage, the total cost of production for a transnational company includes the energy costs, currency valuation, shipping costs, transit time, and taxes and tariffs which why Mexico will be more attractive. Additional to that Mexico has a well-educated workforce and a maquiladora system that eliminates tariffs for products exported to the United States.
The event also is considering in reviewing intellectual property protection and labor and fiscal trends which affecting foreign firms in Mexico and to present the solutions to those aspects by Mexican authorities
