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BEST PROSPECTS FOR MARKETING

TO MANUFACTURERS IN MEXICO

Mexico has a large and diverse manufacturing base comprised of Mexican
firms and foreign direct investment, particularly from the US. These
manufacturers import over half of all of Mexico's huge \$168.6 billion
in imports. The Mexican industrial market represents enormous potential
for US exporters as it purchases over \$88 billion dollars annually in
inputs and equipment for its manufacturing sector. US manufacturers
currently supply well over half of this market. This \$88 billion dollar
industrial market dwarfs total imports by any other Latin American
country. (Brazil imports \$64 billion annually.)

Electronic components, mechanical components, machinery and plastics
represent well over half of the import market in Mexico. This is a
market based on price, quality, service and delivery, and purchasing
managers continually seek to lower costs without sacrificing quality and
service.

Companies such as Grainger that supply all kinds of industrial supplies
are doing very well in Mexico, however, they are not original
manufacturers, and their prices are normally higher than direct
suppliers.

Many products are already produced in Mexico, however, sometimes
production quantities and qualities do not meet the requirements of the
OEMs or companies that manufacture for the export market, and for that
reason US and Asian exporters supply much of these products. Many
suppliers have to meet ISO quality specifications.

Certain types of technical equipment are also required, mostly in the
process control sector and especially computerized process control
equipment.

Below is a list of the industrial supplies that have a potential market
in Mexico:

Bearings of all types

Industrial cleaners and lubricants

All types of fasteners

Industrial heating elements and control equipment

Mechanical power transmission products

All types of rubber products (hoses, belts, rings, etc.)

High-pressure hoses and fittings

Welding equipment and supplies

Tools, hand and power

Air conditioning and refrigeration parts and supplies

Automotive accessories and aftermarket parts

Building insulation products

Lighting products

Electronics circuit component assembly equipment

Electronic circuit test equipment

Electrical power systems, emergency power equipment

Electric transmission and distribution systems and equipment

Industrial chemicals (heat resistant paints, corrosion arrestors, etc.)

Industrial coatings

General industrial test equipment

Measuring and checking instruments

Materials handling equipment and supplies

Industrial safety equipment

Machine tool and metalworking supplies (cutters, grinders, abrasives,
etc.)

Packaging, labeling equipment and supplies

Plastic industry supplies and equipment (dyes, cleaning agents, mold
maintenance, resins, etc.)

Filters, all types (water, chemicals, air, fuels, etc.)

Pumps, valves, compressors, - equipment and supplies

Pipe, tubing and fittings

Alarms and other detection equipment

Electronic safety systems,

Access control systems

Water treating materials and equipment

For additional information about how to market your products in Mexico,
please contact:

Ernesto de Keratry

US Consulate General

Monterrey, Mexico

Tel: (52\_ 818-345-2120 ext. 373

<Ernesto.de.Keratry@mail.doc.gov>

Or your local US Export Assistance Center.