Editor’s Note
This article highlights a significant trend of foreign investment fueling growth in Mexico’s manufacturing sector, with projections indicating robust sales growth in the coming years.
Over the past year, the arrival of new foreign investors in Mexico has been observed, particularly in the manufacturing industry, which has brought economic growth to the country. According to data from the Association for Manufacturing Technology (AMT) for Latin America, the Mexican industry projects sales exceeding $300 million in the next five years, driven by growing demand for manufactured products.
According to SAS, manufacturing, which drives and grows the Mexican economy, needs to reinforce and optimize processes, and considers data analysis as the tool for preventing risks and delays in the value chain. This is because the information generated by the industry can be used to optimize processes.
In this context, to avoid delays or other situations in the manufacturing industry, data analysis presents solutions such as supply chains in production demands, thereby avoiding all kinds of waste and expenses that do not generate benefits for manufacturers.
According to data from NTT DATA in collaboration with IDB Invest’s Digital Transformation of Manufacturing in Latin America and the Caribbean, the manufacturing sector of Latin America and the Caribbean is the second largest contributor to the region’s GDP (15.7%). At least in 2022, according to AMT data, the Mexican manufacturing industry estimated an investment of $3.5 billion in technology.
Ernesto Cantú mentions that SAS solutions are oriented towards improving, saving, and selling more based on cutting-edge innovation in technological topics such as the Internet of Things, big data, and consolidated information.
Prevention and analysis allow for anticipating and/or detecting failures to avoid halting productions that have economic repercussions. For a broader and more applied perspective, advanced analytics and artificial intelligence solutions allow understanding the sector at different levels, from products to services, processes, strategies, and business models. For this, manufacturers can identify fraudulent transactions and avoid hidden costs, SAS stated.
It added that data analysis is also responsible for executing a cross-process between all industries involved in product development. The data management proposed through the Viya software offers data simplification and creates models to understand all movements that occur at the intersection of industries. Furthermore, with the goal of improvement, SAS reported that it will be investing $1 billion over the next three years in the development of advanced analytical and AI solutions.
Cantú comments that technology is not only involved in industrial processes and maintenance.
Foreign investment in Mexico has been increasing, especially after the announcement of the arrival of nearshoring to the country, which has brought significant speculation due to competitive advantages, as well as new technologies applied to the manufacturing sector. According to data from the National Council of the Export Manufacturing Industry (index), Mexico would receive $11 billion in new investments in 2023.
