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EMO Hannover Blog

The EMO World Tour continues: Next stop is Mexiko City

March 2017
07
Author: Theodora Laser (Press and public relations at the VDW)
Company: Verein Deutscher Werkzeugmaschinenfabriken e.V.
The EMO World Tour continues: Next stop is Mexiko City

The press conference in Mexico City marks the start of the journey through the American continent. The capital of Mexico is a political, economic, social and cultural center, as well as the country's main traffic hub. Jorge Amero Rodrígez, President of the machine tool sector in AMDM (machine supplier associaton) supports Dr. Wilfried Schäfer, Managing Director of the Machine Tool Builders’ Association and Bernd Rohde Managing Director of the Deutsche Messe AG at the press conference as guest speaker. Rodrígez affirms Mexico 's interest in the topic Industry 4.0. Apart from the difficult political situation, which continues to cause uncertainty, he sees potential for further developments in the Mexican industrial production.

Mexico’s economy developing well so far

The Mexican economy has performed well in recent years, with a growth in GDP of between 2 and 3 per cent. The forecast for 2017 has been quantified by Oxford Economics at likewise a rise of 2.6 per cent. However, it was already becoming evident that the weakening business cycle in the USA, the threats of protectionism, the lower price for crude oil, and President Trump’s attempts at intimidation, were putting this development in doubt. The Mexican government has scaled back its investments. However, private consumption and private investment has had a supportive effect. It is difficult to assess at present whether further growth in the above-mentioned order of magnitude can actually be achieved, since 80 per cent of Mexico’s exports and half its imports involve the USA.

In recent years, thanks to numerous settlements of international automakers and their component suppliers, Mexico has continuously evolved into the seventh-biggest market for machine tools and the fourth-largest importer. Both these figures have doubled within five years. In 2015, Mexico’s machine tool consumption came to 2 billion euros, and the imports totalled 1.98 billion euros. This means Mexico imports almost all its machine tool requirements. The biggest supplier nation, with a share of 24 per cent, is the USA, followed by Japan at 20 per cent, and Germany at 18 per cent. The country ranked 4th among the top export markets for the German manufacturers. In 2015, deliveries increased by almost 70 per cent, whereas in 2016 they fell by 5 per cent. They primarily comprised machining centres, plus part and accessories. In the first three quarters of 2016, orders from Mexico soared, almost doubling. The country has resolved to continue expanding its automotive industry, and with the next wave of investment aims to attract Tier 2 and Tier 3 component suppliers.

“When it comes to creating and upsizing capacities, Mexican manufacturers can at the EMO Hannover familiarise themselves with new solutions,” reports Wilfried Schäfer from the VDW. Exhibitors will include representatives from all important vendor nations for Mexico’s industrial sector. Machine tool manufacturers from more than 42 different countries will be spotlighting their production technology, ranging from simple, sturdy and affordable to high-priced high-tech. Both stand-alone machines and concatenated systems will be on show, plus transfer lines and large machines, featuring a high degree of automation. “The EMO is the ideal platform not only for big investors,” is his explicit message to Mexican trade visitors. “We are especially keen to encourage mid-tier users of machine tools to find out in detail what the world of metalworking has to offer.” The last EMO Hannover attracted more than 200 Mexican trade visitors.

 

Photo: VDW

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