Mañana was yesterday
Mexico, the land of mañana, has seen enormous change over the past twenty years. With strong growth predicted into 2015 and beyond, it looks like tomorrow has finally arrived.
The country has a very healthy outlook. Its 5% growth rate is forecast through to 2015 and is almost equally balanced across imports and exports.
Twenty years ago, one in five dwellings in Mexico had a bare earth floor. One in ten went without electricity and one in three lacked proper sewerage. In 2011, more houses have televisions (93%) than fridges (82%) or showers (65%). Among the populace, two thirds own a mobile phone. Mexico is a nation that has changed fast and is not likely to slow down any time soon. The country has a very healthy outlook. Its 5% growth rate is forecast through to 2015 and is almost equally balanced across imports and exports. It is the second largest economy in Latin America and the 14th largest worldwide. It is committed to a free market economy and generates enormous trade with the U.S. thanks to its membership of the North American Free Trade Agreement (NAFTA).
Mexico's healthy trillion dollar free market economy and growing middle class make the country a magnet for foreign investment. It has become a major manufacturing base for many leading global players in the automotive and pharmaceutical sectors. And from cars to pharmaceuticals, clothes to beer, business is growing rapidly - and keeping DHL busy.
Sector Trends
Mexico is now the 10th largest automotive producer in the world, building around two million cars a year for global brands such as Chrysler, Ford, GM, Nissan, Renault and Volkswagen. Alex Graniewicz, DHL Global Forwarding (DGF) Country Manager, thinks the automotive industry will be a major driver in the country's development. "Mexico's automotive industry will benefit further from the global trend of producing standard versions of cars in a single facility for export around the world. It already accounts for some 18% of Mexico's manufacturing sector."
DHL in Mexiko
- DHL employees total: Over 10,000D
- GF: 350+ (since 1969)
- Express 3,500+ (since 1979)
- DSC: 7,500+ (since 1992)
- 800,000 square meters of warehousing space
- Over 100,000 domestic and international packages a day
The pharmaceutical industry is also finding Mexico an attractive regional center of operations. DHL Supply Chain's Pharmashare facility replicates DHL operations in other parts of the world, where it supplies shared temperature-controlled warehousing for a number of pharmaceutical companies. It has just won the 2011 National Logistics Award.
"Pharmashare has given us growth of 30% per year in the sector," says Daniel Pardo, DSC Country Head. "In fact it has been so successful that we launched an additional 40,000 square meter facility last year, which we expect to be full by the end of this year."
Waiting for kick off
Another big company investing heavily in Mexico is DHL Express. The domestic express market is worth close to EUR1 billion and is growing at a rate of 8% annually. "We were the pioneers in 1979, we effectively created the Express market in Mexico and we're totally committed to it," says Antonio Arranz, DHL Express Country Manager.
Express will invest some EUR88 million into developing gateways, technology and points of sale to ensure Express remains the market leader. EUR23 million will be invested in the development of the largest automated ground hub in Latin America, which will help link together DHL Mexico's 400 points of sale.
DGF will focus less on point of sale and more on the high end of the scale. Going forward it will look at developing high-value sectors and products such as oil and energy, life sciences & healthcare, and high tech. With a focus on proactively meeting customers' needs through continuous investment and innovation, DHL anticipates staying ahead of the market with double-digit growth in Mexico for many years to come.
