Key Figures and Context
Emmanuel Loo, the Undersecretary of Investment and Innovation for the State Economy in Nuevo León, highlighted a record-breaking $5 billion in local purchases by large companies for suppliers at the Automotive Supplier Event. He also estimated that approximately $3 billion in home appliance procurement will be made during the ENCLELAC, opening doors to new investments following a promotional tour in Asia.
Nuevo León, a state in northeastern Mexico, has become increasingly relevant due to its strategic position in the manufacturing industry and recent efforts to attract more businesses. Emmanuel Loo, as a key figure in these developments, has been instrumental in fostering an environment conducive to investment and growth.
Record-Breaking Investments and Procurement
During the inauguration of the Electrodomésticos Cluster Encounter (ENCLELAC) in Monterrey, Loo announced that Nuevo León has shattered records in both investment and local procurement, with $5 billion spent by large companies on suppliers in the Automotive Supplier Event. He further mentioned that $3 billion worth of home appliance procurement is expected during ENCLELAC.
These achievements have strengthened the industrial ecosystem and paved the way for new investments, as Loo returned from a promotional tour in Asia, where he highlighted Nuevo León’s position as the fifth-largest market for home appliances and his efforts to bring in three additional Asian companies to become the number one market.
Nearshoring Focus on Cooling Equipment
The second wave of nearshoring in Nuevo León is primarily focused on data centers and electronics, with Loo emphasizing the state’s advantageous position due to the absence of tariffs, unlike neighboring countries such as Canada.
Nuevo León is well-positioned to attract anchor companies looking to establish their supply chains in Mexico, taking advantage of its tariff-free status. Loo anticipates announcing significant new players in the home appliance, automotive parts, technology, and logistics sectors soon, signaling a second wave of nearshoring.
Impact on Home Appliance Industry
Currently, 80% of home appliance production is intended for export, and this percentage is expected to grow with the rise of nearshoring. Mexico currently exports around 100 million home appliance units, and with the projected growth due to this economic phenomenon, the number is estimated to reach 120 million units by 2029, according to CLELAC data.
This growth is expected to bring more manufacturing opportunities, particularly in metalworking and components related to artificial intelligence, computers, and cooling infrastructure for data centers.
Key Questions and Answers
- Who is Emmanuel Loo, and why is he relevant? Emmanuel Loo is the Undersecretary of Investment and Innovation for the State Economy in Nuevo León. He is relevant due to his efforts in fostering a business-friendly environment, attracting investments, and promoting the state’s industrial growth.
- What records has Nuevo León broken in investment and procurement? Nuevo León has broken records with $5 billion in local purchases by large companies for suppliers at the Automotive Supplier Event and expects $3 billion in home appliance procurement during ENCLELAC.
- What is the focus of the second wave of nearshoring in Nuevo León? The second wave of nearshoring in Nuevo León is primarily focused on data centers and electronics, taking advantage of the state’s tariff-free status.
- How will the growth in home appliance production impact the industry? The projected growth in home appliance production, driven by nearshoring, is expected to create more manufacturing opportunities in sectors like metalworking and components related to artificial intelligence, computers, and data center cooling infrastructure.
