Industry Focus
Introduction
Mexico is a vibrant player in the global fastener trade, boasting a robust manufacturing sector and a strategic
geographical location that facilitates trade with major economies. Mexico has emerged as a significant contributor
to the global fastener market, thanks to its competitive manufacturing capabilities, skilled labour force, andfavourable trade agreements. The country's fastener industry caters to various sectors, including automotive,construction, aerospace, and electronics.
Automotive Industry: Mexico is the seventh-largest global passenger vehicle manufacturer, producing
approximately three million vehicles annually. Ninety percent of vehicles produced in Mexico areexported, with 76 percent destined for the United States. Mexico is the sixth-largest manufacturer ofheavy-duty vehicles for cargo, hosting 14 manufacturers and assemblers of buses, trucks, tractor
trucks and engines. These producers maintain 11 manufacturing plants that support morethan 24,000 jobs nationwide. Mexico is the leading global exporter of tractor trucks, 95.1
percent of which is destined for the United States. Mexico is also the fourth-largest
exporter of heavy-duty vehicles for cargo, and the second-largest export market
after Canada, for U.S. medium and heavy-duty trucks.1
Aerospace Industry: Mexico is a world leader in the aerospacesector. In the last nine years, this sector grew 17.2% on average per
year and moved from the tenth to sixth place among the countries
that export the most to the aeronautical industry. There are
currently more than 300 companies in the aerospace sector in
Mexico. Of these, 80% are manufacturers, while 20% offer
design & engineering services, as well as maintenance, repair
and operations (MRO).2

Fastener Tradeof Mexico in 2022

Through Q1 2023

Construction Industry: The size of Mexico’s construction
market was valued at US$175.9 billion in 2022 and is expected
to grow at an AAGR of more than 2% during 2024-2027,
supported by investment in the transport and energy sectors.3
Electronic Industry: Baja California is home to one ofMexico’s largest clusters of electronics manufacturers andsuppliers, with over 200 companies—including Samsung,LG, and Foxconn—and 150,000 employees in the state. Since
2020, the consumer electronics market has continued to soar indevelopment, reaching a record high sales volume in 2021 ofover 178 million units.4

In a simple word, Mexico's trade agreements, such as the United States-Mexico-Canada Agreement (USMCA), have played avital role in facilitating its fastener trade. These agreements promote trade liberalization and provide a stable framework for crossborder transactions. However, it is crucial to monitor any potential changes in tariffs or trade policies that may affect the fastenertrade landscape. The fastener industry in Mexico witnessed notable developments in 2022. The industry has embraced
advanced manufacturing technologies, such as automation and robotics, to enhance productivity and meet international
quality standards. Additionally, manufacturers have focused on sustainable practices and eco-friendly materials to alignwith global trends. Like many industries worldwide, the fastener trade in Mexico faced challenges due to the COVID-19 pandemic.
Lockdowns, supply chain disruptions, and reduced demand from key markets affected the sector. However, Mexico's strong recovery
measures and resilience allowed the industry to rebound quickly and adapt to the changing market dynamics. The following statistics
prove this claim.

Fastener Trade in 2022
Throughout 2022, Mexico experienced steady growth in its fastener trade. (Table 1)
Table 1
Unit: Thousand USD

2018

2019

2020

2021

2022

Mexico's Export Value

187,277

211,546

213,862

250,429

284,198

Growth---13%

1%

17%

13%

Key export destinations included
•
•
•

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The United States that purchased 86% of the whole exported fasteners of Mexico,
Canada that purchased 3% of the whole exported fasteners of Mexico andThe rest of countries with 11% share.

Fastener World no.201/2023

The automotive industry was amajor driver of fastener exports,
as Mexico is a major production
hub for global automakers.
I m p o r t M a r k e t A n a lysi s:
Mexico's fastener import market
also witnessed significant activity in
2022. (Table 2)

Industry Focus
Table 2
Unit: Thousand USD

2018

2019

2020

2021

2022

Mexico's Import Vaule

2,991,347

3,025,057

2,488,440

3,208,135

3,627,671

Growth---

1%

-18%

29%

13%

As the country continues to develop its infrastructure and manufacturing sectors, thedemand for fasteners has increased. Key import sources included•

The United States that represented 44.2% of the whole imported fasteners of Mexico,•China that represented 17.5% of the whole imported fasteners of Mexico,•Taiwan that represented 14.0% of the whole imported fasteners of Mexico,•

Germany that represented 5.4% of the whole imported fasteners of Mexico,•Japan that represented 4.3% of the whole imported fasteners of Mexico,•South Korea that represented 3.8% of the whole imported fasteners of Mexico and•

Other countries that represented 10.8% of the whole imported fasteners of Mexico.

The import market catered to various industries, including construction,manufacturing, and electronics.

Q1 2023 Analysis
While a detailed analysis of the first quarter of 2023 is not yet available, preliminary
data suggest a constant trend in Mexico's fastener trade. The country's fastener exports
and imports are expected to grow steadily, driven by the recovery of the global economy
and increased demand from key industries. Continuous efforts to enhance manufacturing
capabilities and expand trade relationships contribute to this positive outlook. (See tables 3& 4)
Table 3 (Unit: Thousand USD)
Mexico's Export Value toOct. 2022

Nov. 2022

Dec. 2022

Jan. 2023

Feb. 2023

USA

152,290

135,920

122,360

163,388

153,977

Growth----10.7%-10.0%

33.5%

-5.8%

Canada

2,362

2,347

1,847

2,542

2,104

Growth----0.6%-21.3%

37.6%-17.2%

Table 4 (Unit: Thousand USD)
Mexico's Import Value from Oct. 2022
USA15,117

Nov. 2022

Dec. 2022

Jan. 2023

Feb. 2023

15,565

13,76516,033

14,884Growth---3.0%-11.6%

16.5%-7.2%

China

26,24525,42924,63629,99724,552Growth---

-3.1%

-3.1%

21.8%

-18.2%

Taiwan11,8609,520

10,410

9,751

9,022

Growth----19.7%

9.3%

-6.3%

-7.5%

Germany

17,75914,52815,55814,92915,610Growth----18.2%

7.1%

-4.0%

4.6%

Japan

7,078

9,449

11,661

13,6988,521

Growth---

33.5%

23.4%

17.5%

-37.8%

S. Korea

6,606

7,164

6,594

6,767

7,628

Growth---

8.4%

-8.0%

2.6%

12.7%

1. https://www.trade.gov/country-commercial-guides/mexico-automotive-industry
2. https://www.mexico.bciaerospace.com/en-us/participants/aerospace-industry-in-mexico
3. https://www.globaldata.com/store/report/mexico-construction-market-analysis/
4. https://www.ivemsa.com/industries/electronics-manufacturing-in-mexico/

Conclusion
Mexico's fastener trade has exhibited
resilience and showcased significant growthpotential throughout the entirety of 2022
and the first quarter of 2023, even amidst
the challenges posed by the COVID-19
pandemic. The country's strategic location,
along with its skilled labour force and wellestablished supply chains, form a robust
foundation for sustained success in thefuture. Moreover, Mexico's commitmentt o t e c h n olog ic a l a d va n c e m e n t s h a s
allowed it to stay competitive and meet theevolving demands of the fastener industry.
However, it is important to acknowledge
that challenges lie ahead. Evolving trade
pol icies, u ncer t a i nt ies i n t he globa leconomy, and intensifying competition
from other manufacturing hubs necessitate
careful monitoring and strategic planning.
Looking forward, Mexico's fastener trade ispoised for continued growth in the comingyears. The country's advantageous position,
skilled workforce, and established supply
chains provide a strong foundation for
future success.
Article by: Sharareh Shahidi Hamedani
Copyright owned by Fastener World

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