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Top 10 Industries Driving the Mexican Economy
- Automotive: Mexico is the sixth-largest automobile producer in the world. For over 30 years, it has been a major international location for assembling facilities and primary parts production.
- Aerospace Manufacturing: In Mexico, aviation is a critical sector and continues to experience significant growth. New routes are being opened all the time and it also has a large cargo flight sector. There are over 300 aerospace manufacturing companies (OEMs, Tier 1, 2, and 3 suppliers). Queretaro, Sonora, Chihuahua, Nuevo Leon, and Baja California are the key aerospace areas in Mexico. There are also aerospace cluster areas to encourage industry innovation and investment.
- Medical Device Manufacturing: Over 650 companies are involved in Mexico’s medical device industry, with Baja California being the major medical device manufacturing region. Some major brand names operating in Mexico are: Medtronic, Kimberly Clark, Boston Scientific, Johnson & Johnson, Cardinal Healthcare, and Stryker.
- Electronics: Since the signing of the 1994 NAFTA agreement (now replaced with the United States Mexico Canada Agreement), Mexico has been a major location for the assembly and manufacturing of electronics. This includes electronic components for automobiles, airplanes, home appliances, medical devices, and consumer electronics.
A significant amount of manufacturing is carried out by the major contract manufacturers like Flex, Jabil, Foxconn, and Sanmina.
- Appliance Manufacturing And Furniture Manufacturing: Mexico is the 5th largest exporter of household appliances and furniture in the world. Some of the major companies manufacturing in Mexico are Electrolux, Whirlpool, American Standard, and Fisher & Paykel. In 2020, the Swedish furniture giant IKEA announced that it will establish a manufacturing plant in Coahuila, Mexico.
- Agriculture: Mexico’s agricultural sector is one of the main drivers of its economy, with about 78% of its total agricultural exports being sent to the United States. Some of its top exports are: corn, avocado, limes, lemons, coffee, sugarcane, barley, beans, blue agave, chili, sugar, wheat, pineapples, cacao, mangos, tomatoes and poultry. While the US is the key export location, more distant places like Australia, Japan, and Singapore also receive Mexican produce.
- Food Processing and Beverages Industry: The food processing and beverage industry is another major economic force in Mexico. It has the world’s 11th largest food processing industry and is the 3rd in the Americas after the US and Brazil. Tequila and mezcal both come from Mexico, as do the globally renowned beer brands Corona, Tecate, Model, and Estrella. Some of the key processed foods exported from Mexico are juices and nectars, sauces, canned fruits, canned legumes, seafood products, cereals, and typically Mexican foods ( for example moles, hot sauces, guacamole, avocado cubes).
- Oil and Gas Industry: Mexico is bounded by the Pacific Ocean on its western coastline and the oil-rich Gulf of Mexico on its eastern side. Its geography makes it the world’s 10th largest producer of oil and it holds approximately 11.1 billion barrels of oil reserves, which is the 18th largest in the world. In December 2013, Mexico amended its constitution to allow local and foreign investments into the energy sector and this led to the energy giants like BPH, BP, Shell, Murphy Energy, ExxonMobil, and Chevron putting their operations in the country.
- Apparel & Textile Manufacturing Industry: As Mexico’s fourth-largest manufacturing industry, apparel/cloth and textile manufacturing accounts for about 4.7% of Mexico’s manufacturing GDP (textiles 1.3%, apparel 2.5%). It is the 5th largest worldwide exporter after China, Vietnam, Indonesia, and Bangladesh. In addition to producing high grade consumer garments (e.g. leather jackets, boots, denim, suits), Mexico has strong expertise in technical fabrics due to its automotive and aerospace manufacturing experience.
- Consumer Product Manufacturing: Mexico’s consumer products manufacturing industry has been growing as companies shift their production to Mexico because of its low costs and delivery times. Products such as cosmetics, toys, games, household goods, and personal care products are made in Mexico; in fact, Mexico is one of the biggest toy producers aside from China and Brazil.