Canadian Off-Road Vehicle Company Trailblazing in Mexico Under New USMCA
Only a day after the new USMCA went into effect, the Canadian company Bombardier Recreational Products (BRP) was the first to announce that it will be investing an estimated US$136 million dollars to expand its off-road vehicle production capacity in Ciudad Juárez. BRP has a long history of hedging its bets here—both due to the country’s human talent, as well as the myriad of other benefits it offers for companies looking for options to set up nearshore or offshore manufacturing in Mexico.
Over the more than 75 years since its BRP was founded, it has always shown a commitment to one of its core values of innovation through both investments in R&D and its willingness to take the road less travelled—both literally and metaphorically, making it a world leader in the manufacture of off-road vehicles, snowmobiles, watercraft, and propulsion systems and engines for recreational aircraft. Their brands include Ski-Doo and Lynx snowmobiles, Sea Doo jet skis, Can-Am all-terrain vehicles, as well as Evinrude and Rotax marine propulsion systems and entire line of replacement parts, clothing and accessories.
Reflecting this commitment to innovation, BRP has a long history of international expansion, with plants in Mexico, as well as Austria, Finland and the US. It first established operations in Mexico in Ciudad Juárez in 2001, opened a second plant in Querétaro in 2013, and a third in 2016, also in Ciudad Juárez. The most recent expansion is to meet the recent increasing demand for vehicles known as Can-Am side-by-side (SSV), with sales of these vehicles increasing more than 35% in May of 2020 compared to 2019, despite the pandemic.
According to BRP’s President and CEO, José Boisjoli, “This new plant, combined with the company’s two off-road manufacturing facilities in Ciudad Juárez, will create positive operational synergies and efficiencies” that will aid the company in meeting its goal of reaching 30% market share. The planned facility, for which construction is scheduled to begin in the coming months and should be completed by the end of 2021, will result in the creation of up to 1,000 permanent jobs and a total capital expenditure for 2021 between $202 to $220 million dollars.
This step is clear proof that more international companies will continue to look at both industrial real estate Mexico and Mexico manufacturing, as they search for ways to gain market share and become more competitive, cost-effective and set up operations in ways that allow them to have more diverse, flexible and dynamic supply chains. With the entering into effect of the USMCA, as well as additional programs in Mexico aimed at attracting foreign investment, including the IMMEX program, it is a good idea to look into how using shelter services in Mexico can help your company grow and succeed in these changing times.
By Isaías Rivera | Mkt & Business Development Manager | American Industries Group®
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