Technavio Insights is a global technology research and consulting company producing more than 2,000 research deliverables each year. Technavio employs roughly 200 analysts worldwide, covering more than 500 business and industry technologies in 80 countries.
In June 2015, Technavio released a new report detailing expectations and growth projections for the digital manufacturing market in Mexico for the five-year period between 2015 and 2019.
How digital manufacturing software works
Digital manufacturing systems are a component part of the larger product lifecycle management systems that support many large-scale manufacturing companies. Digital manufacturing products use computer-based simulations, 3D models and analytical tools to design and test manufacturing processes, procedures and even simulate product production.
"Manufacturers increase production efficiencies while controlling cost."
The advantage to digital manufacturing is the processes developed electronically are malleable, allowing manufacturers to test and improve on production strategies before committing costly time and physical resources. Technavio's research report states that digital manufacturing software "provides and supports process planning, factory modeling, visualization and simulation of operations, human factor analysis, and collaborative communication."
The Boston Consulting Group, a U.S.-based business consulting firm, reported that digital manufacturing will impact more than workflow and procedure. In addition to anticipated improvements in process and quality control, digital marketing tools allow companies to replicate complete assembly lines to model production in different locations and facilities. This opens opportunities for manufacturing communities like those in Empalme or Saltillo to compete not just on the strength of the Mexican labor market, but on offshore infrastructure investments as well.
Basically, digital manufacturing allows manufacturers to increase production and facility efficiencies while controlling both labor and materials costs.
About the report
Technavio combined information from industry experts and Mexico-specific market analysis to build the 69-page report. Key solutions providers in the Mexican market include:
- Dassault Systèmes
- Siemens PLM
Digital manufacturing is quickly becoming an important tool for large companies, and software developers work to provide customized tool sets targeted to small and medium-sized enterprises.
Technavio listed 3D Systems, HP, TCS and Visual Components as prominent vendors competing with the four key players. Perhaps these companies will begin to compete with the big four as small to medium-sized enterprise options become more available to Mexican manufacturers.
Growth and adoption of digital manufacturing in Mexico
The Boston Consulting Group reported that modern manufacturers are driven to identify new, innovative ways to compete on cost. Labor remains the dominant cost factor in manufacturing, but rising wages in traditionally low-cost labor markets like China put pressure on operators to look for technological edges over the competition. Similarly, companies working to become more eco-friendly are interested management and planning tools that eliminate waste, achieving the company's environmental objectives while helping to control costs.
Technavio's June 2015 report zeros in on digital manufacturing in Mexico's rapidly growing manufacturing markets. The research team focused on several specific market segments, including:
- Aerospace and defense industry.
- Automotive industry.
- Electrical and electronics industry.
- Fabrication and assembly industry.
- Consumer process goods industry.
- Utility industry.
According to Technavio's research, digital manufacturing products are not widely used by Mexico's small and medium-sized manufacturers. Larger producers, however, are beginning to deploy digital manufacturing systems as an integral part of overarching product lifecycle management systems.
Technavio projected that by 2019 the digital manufacturing market will grow by nearly 7 percent compounded annually. Domestic manufacturers looking to capitalize on Mexico's manufacturing boom might look to digital manufacturing software to manage cost while expanding operations.
On a global scale, Technavio's findings indicate that large companies are driving early adoption of digital manufacturing applications. It remains to be seen how quickly solutions providers can develop customized offerings for small and medium-sized producers. Regardless of the timing, Mexico is poised for growth, offering the one-two punch of talented, low-cost labor and flexible, extensible manufacturing communities.