16/04/2024
Steel consumption in Mexico is expected to grow more than in the rest of Latin America in 2024. The nearshoring trend is driving the steel producers of the industrial park in Monterrey to explore new opportunities arising from manufacturing activities.
Alejandro Wagner, Executive Director of the Latin-American Steel Association, explained to Forbes Mexico magazine that in 2024, the expected growth for steel demand in Mexico will reach 2.6%, while for Latin America, it is 2.5%.
Wagner also stated that these dynamics are due to companies’ announcements of new facility establishments, such as Tesla, which will boost industrial activities in the country.
“These investments are driven by the North American market and the post-COVID trend that already existed but started to accelerate after the pandemic. Many companies and countries understand that globalization made production costs the main decision driver. Unlike other years, what will drive steel demand in Mexico in the next 12 to 24 months is more manufacturing than construction,” affirmed Wagner.
An opportunity to grow business due to nearshoring dynamics
With the nearshoring to Mexico trend expected to accelerate, producers in the industrial park in Monterrey and the rest of the country look to close agreements for US $ 20,000 million to take advantage of the enterprise relocation caused by nearshoring in recent years.
According to analysts who see the increasing construction rates as an early sign of the nearshoring trend, this dynamic is expected to grow even more. Automotive, metalworking, plastics, aluminum, and electronic devices production are the industries most benefiting from this situation.
The demand for raw materials from companies such as KIA and Tesla are set to drive growth for the suppliers associated with Mexico’s Industry Suppliers Chain.
In recent years, the Mexican automotive industry has been the main driver for the metalworking and plastics sector, as they represent an essential factor in the purchasing requirements for machining, plastic injection, aluminum injection, stamping, and casting, among other production activities.
In the industrial park in Monterrey, such as in other important spots for Mexican industry activities, Frontier Industrial offers industrial land for sale and buildings for rent.
We can assist your enterprise in establishing or expanding its operations by providing access to industrial space and high-quality services in the country’s central industrial regions. If that’s your case, feel free to contact us and develop your project with us.
