Maquiladora industry: value-added and transportation equipment
According to preliminary figures from the Mexican government, 30.3% of the maquiladora industry’s value added in 2022 corresponded to the production of transportation equipment.
The Mexican maquiladora industry is comprised of entities that import raw materials and components duty-free and, in turn, export their finished products, with suppliers paying only tariffs on a value-added basis for work performed in Mexico.
Initially established primarily along the U.S.–Mexico border, in-bond plants now operate in other regions of the country.
By expanding production to these other regions, in-bond plants and suppliers have greater access to a larger and more diverse workforce.
This expansion has also provided the in-bond plants with greater access to raw materials made available by Mexican suppliers.
Maquiladora industry
According to Inegi data, Mexico’s total exports (excluding services) in 2022 increased 16.9% compared to 2021.
This was mainly due to annual increases of 15.8% in non-oil exports and 34.2% in oil exports.
The most significant annual increases in exports were in automotive sector products (13.8%), textile products, apparel and leather industry (11.0%), professional and scientific equipment (6.4%), and food, beverages and tobacco (2.4 percent).
The year-over-year increase in automotive product exports was the result of a 9.8 percent increase in sales to the United States and a 39.6 percent increase in sales to other markets.
In addition to auto parts and automobiles, maquiladora production includes electronics, medical devices, aircraft parts, and machinery. IMMEX companies also sell services.
Following the passage of the North American Free Trade Agreement (NAFTA) in 1994, the activity of IMMEX companies became increasingly correlated with U.S. manufacturing production and, therefore, is susceptible to recessions and expansions impacted by what happens north of the border.
When there is a rebound in U.S. consumer demand for refrigerators, televisions, washing machines or automobiles, production orders rise in IMMEX companies.
