MANUFACTURING INDUSTRY TRENDS: The importance of North America´s relation.

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Emilio Cadena, CEO of Grupo Prodensa shares his insights about trending topics in the manufacturing industry.

Nowadays, the manufacturing industry in North America is a trending topic around the world. The negotiation of USMCA has caused many changes in which some companies in Mexico such as General Motors has been affected in the supply chain process. This is why Emilio Cadena, CEO of Grupo Prodensa shares his insights and also, talks about the importance of North America´s relation for the benefit of the three countries.

General Motors, a leader company in the automotive industry in Silao, Mexico suffered a work stoppage due to the lack of supplies that is received from the United States. As a result, what happens in one side will automatically affect the other, what happens to the United States will affect to Mexico and vice versa. Silao is not the only one that is being affected by the US, mentioned Emilio Cadena, but also Canadian facilities. This is why it is very essential to understand the importance of North America’s relation.

If the situation of General Motors would had been the other way around, the result probably would be that the final product didn’t arrive to the customer because Mexico manufactures more than 30% of the auto parts in the automotive industry. In conclusion, the level of dependency is mutual. North America is completely connected in their supply chain, so it is crucial that the US, Mexico, and Canada continues working together to have a positive impact in the manufacturing industry.

Could this situation be an opportunity for Mexico to increase local suppliers?

Sounds reasonable, Cadena says, but the truth is that the supplies cannot be produced anywhere.

There are companies like General Motors that require a large amount of capital investment and, it is not that simple to find a supplier for its manufacturing process. It sounds easy to think about local suppliers but in practice is different. Companies will always look for the best supplier that is near them and offer the materials they need for their process.

In conclusion, the importance of North America´s relation is vital for the benefit of everyone. The US, Mexico and Canada need each other to grow, together as a team.

For additional information, in the manufacturing trends Grupo Prodensa can help you.

Prodensa Intelligence, an advisory service that can help you with Market Framework, Assessments and Business Continuity.

https://www.prodensa.com.mx/2020/solutions/

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