An impressive 66 percent of Latin American industry is planning to expand investments in 2016 and beyond. This was one of the many findings of a recent survey of the machine tool market in Latin America conducted by Metalmecanica in conjunction with AMT - The Association For Manufacturing Technology.
IMTSTV sat down with Luna following his presentation on the survey results at the Global Forecasting and Marketing Conference (GFMC). He expanded on the findings of the survey and emphasized the importance of these findings for American companies.
The machine tool markets in Latin America and the United States are very intertwined, largely because of the close ties the two countries maintain when it comes to commerce, Luna explained. The survey demonstrated that there are many investment plans in the future in Latin America. Growth in the auto and medical industries, for instance, is leading to reinvestment in new machine tools, Luna noted.
There are many small- and medium-sized companies in Mexico and throughout Latin America that are essential to the supply chain and that are eager to make partnerships with American companies to promote growth in local markets. For example, both GM and Ford are currently sporting products from the U.S. for the Latin American factories, but they need to acquire these supplies closer to their faciliities, meaning more opportunities for smaller suppliers in Latin America. Luna suggested that U.S. companies strongly consider moving to Mexico or partnering with smaller companies in Mexico to tap into this market.
Beyond simple expansion plans, the survey found that many Latin American based companies are thinking of adding complementary processes, including metrology, auxiliary devices, work holding, and others, said Luna. These upgrades would allow the companies to be far more combative in the global marketplace. Overall, American companies need to be more aware of the growth that is happening across the border and consider how they can make doing business in Mexico a part of their business plan.
For more information about Latin America, please visit AMT's Monterrey Technology Center and attend GFMC 2016 in October.
View the interview in Spanish: