Mexico Manufacturing: On the Road to Industry 4.0

Manufacturing 4.0 has revolutionized industry across the world in recent years. New solutions like the Internet of Things (IoT) and the use of artificial intelligence are changing the way companies do business, and Mexico is no exception. For several decades it has invested in educational and R&D infrastructure. Today it has thousands of engineering students and even more skilled technicians, graduating from its institutions each year. These investments, along with the continual adoption of cutting edge technologies, has created the strong productive ecosystems the country has today.

The signing of NAFTA in the late 1990s marked the start of the revolution in Mexico manufacturing operations. With the removal of trade barriers, it needed more than highly-skilled operators, engineers and administrators to remain competitive in productivity and efficiency. It also began adopting more sophisticated computer-aided applications, allowing national and international companies in Mexico to maximize investments made in industrial hubs and parks across the country. With the adoption of technologies and platforms such as ERP, CAM, BPM, EAM and EDI in the early 2000s, Mexico began to emerge as a leader in North American manufacturing operations.

In more recent years, Mexico has made exponential improvements to its Internet infrastructure to meet the needs of industry 4.0 and the increased bandwidth this demands. Many companies today use global manufacturing networks to track supply and demand in their facilities around the world. These networks, which allow companies to ensure a timely response to remote support and general resource management, are dependent on the widespread availability of reliable internet connections.

Increased connectivity is critical in ensuring that Mexico manufacturing remains a leader in North America and the world in the coming decades. It will enable companies to offer cutting-edge and high-efficiency nearshore manufacturing solutions. These solutions include technologies that track production KPIs in real-time across many locations and allow you to know the precise delivery date for your goods using reliable platforms that connect orders from vendors with the availability of materials and manufacturing assets. Data is then integrated into Mexico’s existing neural networks through asset management systems. This technology, in combination with the help of shelter services in Mexico, providing local expertise and suppliers, will allow companies to start up their globally connected operations.

Continuing technological advances, along with changes in the country’s industrial policy to support the manufacturing and export industry (including the IMMEX program) and the implementation of the new USMCA, makes Mexico one of the most open and competitive countries in global trade. Already a leader in Latin American manufacturing, with 80% of high tech exports coming from Mexico, it is entering an unprecedented phase of progress to create an even more integrated, highly-connected, and articulated productive apparatus, allowing it to reach its full potential in manufacturing 4.0.