Mexico's automotive industry is one of the country's fastest growing industrial sectors. According to Reuters, the Mexican Auto Industry Association announced auto production increased month-over-month by 1 percent in October and exports rose by 11 percent. In October, exports to the U.S. increased by 26.5 percent and exports to Canada rose by 55.9 percent. Offshore manufacturing in the automotive sector will continue to drive industrial output in the future. With its low-cost manufacturing environment, competitive labor costs and skilled workforce, Mexico's auto industry is expected to continue expanding into next year.
According to El Economista, automotive manufacturing will hire 9,000 employees next year. Compared to 2012 when the sector generated 6,873 new jobs, this will be a significant increase for the industry. Mazda and Honda recently opened new plants in the country, which are anticipated to begin operations as early as February. While these manufacturers have already hired workers, Toyota is expected to increase its hiring during summer of 2014 for a new maquiladora set to open in 2015, El Economista reported.
As more U.S. and Canadian automakers expand to Mexico, the number of exports and new positions will rise. This growth may benefit North America's global automaking competitiveness.
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