The Mexican economy is experiencing growth, part of which could be a result of many industries, such as medical devices, manufacturing in Mexico.
According to data from the National Statistics Institute cited by Fox News Latino, Mexico's gross domestic product grew 1.7 percent in the first half of the year compared with the same period in 2013. However, the growth was slightly smaller than many experts initially projected. For instance, the Mexican government revised its 2014 economic growth estimates in May from 3.9 percent down to 2.7 percent.
While a boom in the agriculture sector was primarily responsible for the increase, the service and manufacturing sectors also contributed, the new source reported. Manufacturing expanded by 2.4 percent.
Growth of manufacturing in Mexico
Growth in the manufacturing sector could be a significant reason for the overall economic expansion. Specific industries having been booming, including automobile, medical device and aerospace manufacturing. In fact, according to Qmed, a director of medical device industry suppliers, industry analysts have predicted that fabrication of medical devices and related goods in Mexico could increase by 74 percent in the next ten years.
As costs have risen in other countries like China, manufacturing in Mexico has become a more cost-effective option. One reason for this is rising wages in the Asian country, which have increased overhead for manufacturing there.
In addition, demand for medical devices could very well be on the rise. A report from Plastics News found that medical device packaging is projected to increase almost 6 percent annually to $25.7 billion in 2017.
Qmed also noted that Mexico could have a significant advantage as demand increases worldwide. It's location makes it an ideal shipping hub between Europe and Asia.
In an interview with Forbes, Eugenio Madero, chief executive of Sanluis Rassini North America, also noted the convenient location of the new hub of production in Aguascalientes, which is located 450 miles from the Texas border.
"Just go to the ocean, and in seven days you're in China," says Madero. "If you ship from Europe, you have to go through the Mediterranean and the Red Sea."
The city is well-located within the country as well, making it a central area between Mexico City, Guadalajara and Monterrey.
As a recent article in Forbes also highlighted, the automobile industry in Mexico has also taken off, also contributing to Mexico's strengthening economy. Recently, a number of foreign auto-makers have announced they would be opening plants in the region.
The country is also becoming a central hub for aerospace manufacturing. Between 2007 and 2011, the number of aerospace factories in Mexico grew from 150 to 260, and exports reached $4.3 billion, a 40 percent increase from 2011, Americas Quarterly noted. On top of that, 30,000 Mexicans are now employed in these factories across the country.
All of these changes serve to place Mexico at the beginning of a fruitful manufacturing period.