This article provides a detailed analysis of Mexico's manufacturing sector growth trends and structural changes based on the "Economic Census 2024" published by Mexico's National Institute of Statistics and Geography (INEGI) on September 3, 2025.
Manufacturing Growth Performance and Scale Expansion
Mexico's manufacturing sector has achieved significant growth over the past decade, with the number of establishments increasing by 32.6% from ten years ago and 9.3% from five years ago. Employment has shown similar growth patterns, increasing by 41.8% from ten years ago and 11.6% from five years ago, maintaining a sustained expansion trend.
This growth has further strengthened the manufacturing sector's position as a key industry in the Mexican economy, with foreign company investment expansion serving as the main driver of growth.
Overwhelming Presence of the Automotive Industry
Within the manufacturing sector, the transportation equipment manufacturing industry (mainly automotive) demonstrates overwhelming presence, with its share in various indicators as follows:
In gross value added composition, it accounts for 31.3% as the largest share, creating nearly one-third of manufacturing value added. In gross fixed capital formation, it occupies 52.6%, more than half, revealing that most manufacturing equipment investment is concentrated in transportation equipment manufacturing.
In terms of employment, it accounts for 20.7%, creating more than one-fifth of manufacturing employment, making it an important source of job creation in the Mexican economy.
Structural Challenges and Characteristics of Manufacturing
The main challenges revealed by the Economic Census results include the high cost of materials and goods procurement as the most serious issue, making supply chain cost efficiency a crucial competitiveness factor. Other factors include security issues, high tax burden, and soaring utility costs as major impediments to business operations.
Structural characteristics include the simultaneous occurrence of micro-enterprise growth and informal economy expansion, creating a distinct polarization between large-scale foreign companies and small-scale local enterprises. Foreign companies, particularly in automotive-related sectors, play a central role in Mexico's manufacturing sophistication and international competitiveness improvement.
Establishing Position as International Manufacturing Hub
Mexico has established its position as an important manufacturing base for the North American market, particularly in the automotive industry, within the framework of the United States-Mexico-Canada Agreement (USMCA). The overwhelming proportion of transportation equipment manufacturing indicates that Mexico has developed beyond a simple assembly base into a high-value-added manufacturing hub.
Future continued foreign investment expansion and strengthened cooperation with local companies are expected to drive further manufacturing growth, while addressing structural challenges such as procurement costs and security will be key to sustainable growth.
The article demonstrates through specific statistical data that Mexican manufacturing, led by automotive industry growth driven by foreign investment, is establishing a solid position as an important manufacturing base in the North American region.