Ciudad Juárez – where 70 percent of manufacturing is dedicated to auto parts – has contributed to the growth of the country’s automotive sector, as the work done on this border is in most vehicles sent to the United States and a good part Of the assemblies on the north side of the border. And is that, according to analysts, the progress in the local and national sector is due to the fact that transnational corporations continue to find Mexico as a strategic point for manufacturing, where there is a skilled and cheap labor force, and there is a Part of the worker to perform all kinds of tasks.
In recent years, the Mexican automotive industry has established itself as one of the most important pillars in the production of vehicles destined for the US market, since 77 percent of the vehicles produced in Mexico are exported to the United States. But in the current context, possible changes in US foreign trade policies pose challenges for auto firms because of President Donald Trump’s attacks on auto companies operating in the United States. Analysts say Mexico’s competitive conditions will prevent companies from giving up their economic interests to submit to the threats of the new president.
Those who decide to migrate part of their operations to the neighboring country will enter a context of incompetence (limited staff and expensive labor) that will border them to automate some operations to save projected production costs.
A bit of Juarez in each car
In the last decades, the labor of Juarense has specialized so much in the automotive sector, that at the moment 7 of each 10 manufacturing plants of the city are dedicated to the manufacture of some autoparte
Assemblers of almost all brands, from the American Ford to the Japanese Toyota, integrate leather seats, electric panels, air conditioning horns, brake systems, steering wheel hydraulic systems, harnesses, motor computers, among many other products. In Ciudad Juárez, the largest manufacturers of autoparts are Delphi, Lear, Bosch, Cummins, Siemens, Valeo, Stoneridge, Strattec, Continental, Eagle Otawa, among other transnational companies that deliver their articles to assembly plants in Mexico.
Guillermo Gutiérrez Morquecho, former director of the Association of Maquiladoras Civil Association (AMAC-Index Juárez) and a former manager of Delphi with more than 30 years in the automotive industry says that the automotive manufacturing level Juárez has reached is thanks to the Talent and the provision of the workforce of the border, which currently comprises 65,683 workers out of the 288,333 employed in industry. The manufacturing expert points out that the labor and knowledge acquired by Juarenses have been the main factors by which the local automotive sector has evolved and specialized in the manufacture of auto parts more than in other sectors.
Gutierrez Morquecho believes that for several decades, the workers of the plants located in this city have obtained a high degree of experience and knowledge, which has led them to export talent to other countries, among them the United States. From Juárez, specialized engineers travel to set up and start production lines in any corner of the planet. The interest of foreign firms can be seen in the Foreign Direct Investment (FDI) of the state of Chihuahua: 38.56 percent of the $ 285 million 500 thousand dollars that arrived between January and September of 2016 is focused on the production of all kinds Of auto parts.
That is, in that period, $ 495 million was earmarked in the entity to install production lines and ships to make from seats and electrical equipment, to part of the system of transmission of vehicles. The Ministry of Economy said that 21 percent of the national FDI has Chihuahua – the entity with the most investment in the sector – and 64 percent of it is dedicated to the manufacture of auto parts: the Juarez specialty. The president of the Association of Maquiladoras and Exporters of Chihuahua, A.C. (AMEAC-Index Chihuahua), María Cristina Sánchez Chacón, said that the entity is at its highest point of competitiveness. “Right now we are talking about an automotive industry that already has vertical integration or that has suppliers around its plant.”
Source: El Diario