Introduction to the Electrodoméstico Cluster in Nuevo León
Monterrey, NL. The upcoming Business Meeting at ENCLELAC on August 20th in Cintermex is expected to stimulate investment from over 30 leading electrodoméstico companies interested in relocating their operations from other global regions.
CLELAC President Highlights Potential Impact
Baldwin Britton, President of the Cluster of Electrodomésticos of Nuevo León (CLELAC), emphasized that these companies could generate purchase orders worth approximately $3 billion, double the amount achieved in 2024 when agreements totaling $1.5 billion were concluded.
Navigating Tariffs: The Role of Relocating Suppliers
Steel, aluminum, and copper are crucial for electrodoméstico manufacturing due to their physical, mechanical, and electrical conductivity properties. Without these metals, the sector cannot operate efficiently as steel provides structure and durability; aluminum contributes lightness and thermal capacity, while copper is essential for electrical conductivity and motors.
Britton explained to El Economista that relocating suppliers closer to end-users helps the industry mitigate tariff costs. He stated, “Tariffs undoubtedly have an impact. Before the event, we analyzed risk mitigation strategies for businesses. An approximate 25% increase in steel and aluminum translates to a 5% rise in electrodoméstico prices. Some companies absorb this cost, while others pass it on to the final consumer.”
It’s important to note that while 80% of Mexico’s electrodoméstico production is for export, the domestic market is growing in affluent households. This enables manufacturers to sell their products within the country, and the T-MEC agreement will facilitate regionalization.
Key Questions and Answers
- Q: How will the relocation of electrodoméstico companies affect purchases?
A: More than 30 leading electrodoméstico companies are expected to generate around $3 billion in purchase orders, doubling the 2024 figure of $1.5 billion.
- Q: What role do tariffs play in this relocation?
A: Tariffs on steel, aluminum, and copper impact the electrodoméstico industry. Relocating suppliers closer to end-users helps mitigate these costs.
- Q: How does the domestic market influence this relocation?
A: Despite 80% of Mexico’s electrodomésticos being exported, the domestic market is growing in affluent households. This allows manufacturers to sell their products within the country.
- Q: What impact will the T-MEC agreement have?
A: The T-MEC agreement will facilitate regionalization, enabling electrodoméstico companies to expand their market presence.
