Querétaro’s Small and Medium Enterprises (SMEs) Eye Harness Manufacturing Opportunities
Querétaro, Qro. The manufacturing industry for harnesses is showing interest in the Bajío region, where some projects have started to establish themselves, offering opportunities for local suppliers.
The small and medium-sized enterprises (SMEs) industrialized in Querétaro see potential to venture into this niche, given their experience in supplying the automotive and aeronautical sectors, according to Cuauhtémoc Acevedo Toledo, president of the Querétaro Industrial SMEs Association (Amiqro).
Productivity, Certification, and Competitiveness
While discussing the productive capabilities of companies and access to harness manufacturing machinery, Amiqro’s president explained that SMEs aim to become more productive, obtain certifications, and increase their competitiveness to meet industry demands.
“The harness industry presents a significant opportunity, as Querétaro’s and Amiqro companies are major suppliers to the automotive industry, and harnesses are present in vehicles from any brand, as well as the aeronautical industry. We excel at manufacturing components, and this machinery can make us larger producers with higher productivity, volume, which is what the large industry demands – to be more productive,” Acevedo Toledo stated.
Although Chihuahua is a crucial production center for the harness industry, the Bajío region has become increasingly attractive for this sector, according to Jesús Duarte, president of Expo Wiretech – an event dedicated to the harness industry.
Migration of Harness Manufacturers
Duarte mentioned that some harness manufacturing companies are relocating operations to the Bajío region and even to Central American countries.
“The harness industry is becoming very strong in the Bajío. Several companies are coming here, and many Chihuahua-based firms are migrating to this region, looking for suppliers. Some companies are moving to the center, while others are relocating to Honduras, Nicaragua, and El Salvador. These are large companies,” Duarte declared.
Rising Labor Costs Drive Relocation
According to the entrepreneur, rising labor costs have prompted harness industry companies to seek new locations for establishment, as harness manufacturing is labor-intensive.
“Chihuahua has always been known as the global harness hub, not just nationally; unfortunately, due to salary increases, vacation time extensions, and reduced working hours, it has become less profitable for large companies to maintain these processes. Harness manufacturing is traditionally artisanal, so profit margins are low. Large companies rely on capacity for their profits, but they’re looking to cut costs, making the Bajío an attractive area for them,” Acevedo Toledo explained.
Bajío’s Attractiveness for Harness Industry
The Bajío’s significant presence of original equipment manufacturers (OEMs) makes it appealing for the harness industry, Amiqro and Expo Wiretech’s alliance head noted.
“Remember that 10% of harness manufacturing stays for national use, while 90% goes to the US, Canada, and other countries. These large companies are always looking for better production costs,” he emphasized.
Key Questions and Answers
- Q: Why is the Bajío region attractive for harness manufacturing? A: The Bajío has a significant presence of original equipment manufacturers (OEMs), offering better production costs for large companies seeking to reduce labor expenses.
- Q: What are Querétaro’s SMEs’ motivations for entering the harness manufacturing sector? A: Querétaro’s SMEs aim to boost productivity, obtain certifications, and increase competitiveness to meet industry demands.
- Q: Why are harness manufacturing companies relocating to the Bajío? A: Rising labor costs in Chihuahua have prompted companies to seek more cost-effective locations, with the Bajío offering such opportunities.
