The textile manufacturing industry in Mexico is one of the most prominent sectors because of its specialized workforce. As a best-prospect industry sector for U.S. exporters, 2018 has seen some positive trends in the textile industry.
With its tie to Mexicoâ€™s growing automotive manufacturing industry, textile manufacturing has seen a bit of a resurgence in recent years. Additionally, wage increases in China have made Mexico more competitive and many textile manufacturers are once again interested in moving operations back into the country.
The manufacturing specialists at El Grande Group have the experience, dedication, and manufacturing solutions to help you take full advantage of Mexicoâ€™s growing textile industry. Below you will find key insights regarding Mexicoâ€™s reenergized textile industry.
2018 Textile Manufacturing Trends
According to the Mexican National Institute of Statistics and Geography (INEGI), there was an 11.3 percent growth in the textile industry activity index between August 2017 to August 2018 – this excluded the clothing industry.
While 2017 saw a dip in the garment and clothing production index, thus far, 2018 has seen a steady growth with a full 3 point increase between June 2017 and June 2018.
Thanks to NAFTA regulations, tariffs for textile imports into Mexico from the United States have been reduced. An estimated $2.54 billion dollars worth of textile and apparel products produced in Mexico will be imported into the United States in 2018.
As previously mentioned, salaries in Mexico have become much more competitive with those in China, which is, in turn, encouraging many companies to relocate into Mexico. Amazingly, Mexico has been able to quickly adapt and provide the skilled workers needed to develop quality products in a number of specialized fields such as leather manufacturing.
According to the Mexican Social Security Institute (IMSS), 2018 has seen a 2.3% employment increase within the textile industry, which has resulted in Mexico having a total of 467,834 available textile workers.
Mexico has another advantage over China: location. With the low tariffs provided by the NAFTA treaty, U.S. companies benefit greatly from their ability to export raw materials into Mexico at a cost-effective price while also being able to import finished products more efficiently and economically.
The textile industry is starting to seeing meaningful expansion. Now is the time to take full advantage of establishing your textile manufacturing company in Mexico!
At El Grande Group, we have dedicated ourselves to creating optimal manufacturing and business solutions for your business. If you are ready to expand your manufacturing company and generate more revenue, let El Grande Group partner with you to get the job done right.