Maquila industry, cornerstone of the States` exports.

Maquila industry,
cornerstone of the
States’ exports.
Year 2014 - March 10
th
- No. 648
The total and/or partial reproduction of this content is authorized as long as the source
is cited: Consultores Internacionales, S.C. ® (CISC).
 Maquila industry for export has become
the foundation of the exports.
 This situation is more clear in the States
with the most exports.
 In
order
to
foster
regional
competitiveness, is necessary to increase
productivity, the maquila industry has set
the example.
If we wanted to define a phenomenon from which it is possible
to observe the trends and impacts that globalization has
brought to Mexico, the best choice would definitely be the
maquila industry for export. Since this type of investment
began in our country during the 70’s, the maquila model has
become a synonymous of the country’s economic
transformation.
The Mexico’s Maquila Model, established in 1965 to attract investment and create jobs along the borderline U.S.Mexico, has become in the biggest and most dynamic trade element between the two countries. The maquilas have
gone through a dynamic evolution during the past four decades. In the mid 90’s, these basically were assembling
operations taking advantage of the low cost of Mexico’s workforce. However, with the signing of NAFTA, these have
assumed a main role in the process of regional integration. It is important to remember that maquilas import most of
their inputs from the U.S. and export most of their production also to the U.S. The trade between our country and the
U.S. and the economic interdependence in the border during the past decades can be explained thanks to the
involvement of the maquilas in supplying a strong market like the United States, which has increased since the 90’s.
Commercial liberalization has been on of the most important steps in the economic strategy assumed after the 1980’s
crisis. With it, a process of internal transformation was expected, one where enterprises and sectors would be forced to
produce in a competitive manner in order to answer the demands in quality, price and services by the buyers, nationals
and mostly foreigners. Without any doubt, maquila industry is and has been an example in this process of “creative
destruction” that created the policy of growing through the impulse of external market.
Like we already mentioned (Ciscomentario No. 641), maquila industry has been an important source of jobs, with over
5 thousand plants and a little less than 2.1 million people employed, almost 50 % of the formal jobs registered in the
IMSS for the transformation industry; particularly highlights the northern borderline, where over 70 % of the industrial
formal employment is provided by IMMEX.
Besides, it also contributes with the biggest share of the country`s exports of manufactured goods. According to
information from the National Council of the Maquila and Manufacturing Industry for Export (Index), the nearly 195,490
million dollars exported by IMMEX in 2013, represent 62 % of the total country’s manufacturing exports. With this it is
clear that maquila industry of export is a core in the economic growth and the dynamic of the non-financial external
sector.
Now, like we mentioned, maquila industry for export has a much more visible impact in the regional level, mostly in the
northern borderline States, but also in others like Jalisco, Guanajuato, Mexico, Puebla, Distrito Federal and Yucatan;
this is a reality that also reflects in the exports of manufactured goods done in these States.
Recently, INEGI provided statistical information regarding the exports by each State and by productive sector, which
allowed us to analyze with more detail the relation with the maquila industry. It is important to mention that IMMEX
activities are concentrated (by the amount of production) mainly in six manufacturing sectors: transport equipment
manufacturing, computation equipment, communications, measuring and other equipment, components and electronic
accessories; basic metallic industries; chemical industries; manufacturing of accessories, electrical goods and
equipment for generating electric energy and manufacturing of machinery and equipment.
Now, according to INEGI, ten States provide 85 % of the Mexican exports of the six manufacturing sectors mentioned:
Chihuahua, Coahuila, Baja California, Nuevo Leon, Tamaulipas, Jalisco, Mexico, Sonora, Puebla y Guanajuato. Then
highlight Querétaro, San Luis Potosí y Aguascalientes. It is not strange that these States that provide the biggest share
of the manufacturing exports are the ones located in the northern borderline, since those are the ones with the biggest
number of manufacturing establishments for maquila industry.
Cabe recordar que la productividad es esencial para alcanzar la competitividad ya que es un aspecto muy importante
para generar excedentes exportables. Y los estados que más exportan, son los más competitivos, todos los estudios
enfocados a este fenómeno así lo han señalado. Es claro que antes de proponerse ser competitivos es primordial
elevar la productividad, pues solamente reforzando la estructura productiva local se pueden insertar los productos
competitivamente en el mercado internacional. En este contexto, la industria maquiladora de exportación, ha
contribuido con creces en esta tarea, pero todavía tiene mucho trabajo por delante, el camino es fortalecer las
cadenas productivas de proveeduría, lo que permite agregar valor y a su vez contribuir en mayor medida con el
producto nacional.
It is important to remember that productivity is essential to reach competitiveness, since this is a very important aspect
to generate surplus for export and the States that export the most are the most competitive, all the analyses focused on
this issue have concluded this. It is clear that before set the goal of being competitive, it is essential to raise the
productivity, since only by reinforcing the local productive structure it is possible to allocate all the products in the
international market in a competitive manner. In this context, the maquila industry for export has contributed a lot with
this task, but still has a lot of work to do; the path now goes through strengthening the national supply chains, which
allows to increase the added value and, at the same time, contribute with the national PIB.
States with the biggest number of maquila plants and their share
in the manufacturing exports.
®
Source: Made by Consultores Internacionales, S.C with data from INEGI.
The image is used solely for illustrative
CISComentario D.R. is a weekly publication from: Consultores Internacionales, S. C. ®
Lic. Julio A. Millán B., President; Ing. Mauricio Millán C., Vicepresident. Analysis: Mtro. Sergio Garduño.
Edition Coordinator: Lic. Patricia Gordillo.
The image is copyrighted and is used solely for illustrative
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