T-MEC opens the opportunity for Tier 2 participation, but there are not enough suppliers: Nuevo León Automotive Cluster

Monterey, NL. Mexico is the fourth manufacturer of auto parts, there is a large industry but it has a lack: there are not enough second level suppliers (Tier 2) and it is necessary to increase about six times more, so that there is business for all, assured Manuel Montoya Ortega, director general of the Automotive Cluster of Nuevo León.

“There is a reason for that, when the North American Free Trade Agreement appeared, many suppliers disappeared, because it was more competitive to bring the parts from Korea than to buy them here. The supply chains were broken and now we want to put them back together”, emphasized the manager at the conference Challenges of the Automotive Industry 2022.

He explained that as part of the USMCA, Tier 1 must comply with the rules of origin. Before, they skipped the purchase of components in the North American region, but today they must comply with 75% of essential parts, 70% of accessories and 70% of steel, in national content.

Another reason is that much of the second level supplier requires highly specialized technicians. The shipowners and top tier providers (Tier 1) only require specialized technicians in some positions, but the Tier 2 that are at the base of the pyramid, and at the base of the manufacturing processes, need well-trained personnel.

Are needed manufacturing technicians of plastic injection molds, dies, foundry molds, “we need more technicians in forging, machining, that is not available in the country, because the technical schools do not offer it, they give very superficial courses,” said the also president of the National Network of Automotive Industry Clusters.

“That is where some of the clusters are working to create infrastructure to train this type of technician. In Monterrey we already did it at the Álvaro Obregón Industrial and Technical Preparatory School, where we train toolmakers and now we are going to do it with plastic injection molds, we have already equipped a school building to create the infrastructure that we currently do not have,” he emphasized. .

Another challenge facing second tier providers is that financing in the bank is still expensive, for this reason, some decide to contract loans abroad, since in Mexico interest rates are high, and it is more expensive to buy machinery than a house; They are also looking for options with Nacional Financiera.

“The Tier 2 are in the right place and time”, to take advantage of this opportunity that opens up for them to manufacture these parts, therefore, the Automotive Cluster of Nuevo León is going to hold an Automotive Supplier, which will take place from June 7 to 9 in Pavilion M, reported.

They currently have 15 buyers who are looking for die casting suppliers. In total there are more than 50 buyers, including light and heavy vehicle assemblers and top-tier suppliers.

Other of the main requirements of these companies are: heat treatment, stamping on steel, aluminum and stainless steel; steels, rolling, welding, bending, laser cutting; superficial treatments; pipeline; plastic; aluminum; casting, machining and hot and cold forging.


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