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They plan to relocate more than 1,000 million dollars of production of household appliances in Nuevo León

By Perla Eunice

Nuevo León

August 12, 2022





There is an opportunity of 1,165 million dollars in processes that the Cluster of Electrical Appliances of Nuevo León (CLELAC) is seeking to relocate in the state. Daniel Córdova, president of the cluster, reported that global companies are looking for local suppliers of steel, electrical-electronic components, plastics, among others. 

At a press conference, CLELAC directors presented their next 9th Business Meeting , through which they seek for companies in the region to capture the business opportunity of more than 1,000 million dollars that the sector has.

They mentioned that the nearshoring or regionalization of production chains, as well as highly specialized manufacturing and the need to develop new generation products, maintain the interest of large appliance companies in investing in suppliers located in Mexico.

Mexico is the fifth largest producer of household appliances in the world, with a production amount of 14,800 million dollars (mdd) of a total of 33,000 million dollars that are generated globally. 

"We have a very relevant place. Of those more than 14,000 million, 4,500 are in Nuevo León. We have the opportunity to continue growing; companies are constantly arriving or expanding in the locality, which generates jobs, improves the value chain and generates wealth for the community,” said Daniel Córdova.

49% of the country's electrical appliance production corresponds to heating and conditioning equipment, 24% to white goods, 18% to industrial and commercial refrigeration equipment, and 9% to the manufacture of minor household goods. 

The president of the organization highlighted the diversity of production in the industry as one of the main factors for its growth in the future. He indicated that, based on information from Polaris Market Research , the demand for home appliances will grow at a rate of 17% per year.

OPPORTUNITY TO EXPAND SUPPLY NETWORKS

Carlos González, leader of the supply committee and general director of Hultek , reported that they have identified around 345 economic units that are part of the sector, either as OEMs or in the supply chain. 

“This industry generates around 30,000 direct jobs in Nuevo León; we estimate that in three years this figure will increase by 20% thanks to the arrival of new investments”.

Due to the fact that the main destination of the sector's exports is destined for the United States (85%), the opportunity for Mexican SMEs is to understand the possibilities that other export markets and supply chains have; for which, he highlighted key characteristics such as flexibility, good logistics network, automation and certifications. 

Baldwin Britton, vice president of CLELAC and global director of Plastiexports , made reference to studies by the Inter-American Development Bank that estimate that Mexico's exports may represent up to 35.278 million dollars in addition to the current ones, attributable to the rethinking of supply chains. 

 

REQUIREMENTS

In order to promote interaction between OEM companies with the supplier base, the Nuevo León Appliances Cluster will hold its  9th Business Meeting (ENCLELAC) from September 7 to 9. 

On the first day of the meeting, they will offer a program of conferences on Mexico-United States bilateral relations, success stories of supplier regionalization, workshops on quality, quotes and financing, and a panel of experts in which managers from Bosch, Hisense, Whirlpool will participate. and Prodense . 

On September 8 and 9, B2B appointments will be held remotely. They expect 850 business appointments, 30 buying companies with 300 suppliers and around 600 general participants.

Yoelle Rojas, general director of CLELAC , highlighted that, for 13 years, the organization has been dedicated to boosting the competitiveness of the home appliance sector and strengthening the supply chain.

It is made up of 78 companies that are strengthened through the organization's initiatives, such as training programs for appliance technicians and supervisor leadership.

David Garza, leader of the OEM supplies committee, indicated that purchasing companies are looking for the following products and processes: 

  • Plastics and rubber. 
  • Stamped and die-cut.
  • Casting and extrusion of metals. 
  • Electrical-electronic components.
  • Machined. 
  • Packing and packaging.
  • Metal fabrication and pailería.
  • Lamination of parts, tubes and plastics. 
  • wire forms.
  • Manufacturing assemblies and subassemblies. 
  • Industrial services.
  • Coatings.
  • Forging.
  • Chemicals and lubricants. 
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