Mexican Tool Manufacturers Show Optimism Amidst Automotive Slowdown

Web Editor

June 25, 2025

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Tool Industry Thrives Despite US Import Tariffs

At Tecma 2025, the machine tools expo, Mexican manufacturing executives expressed optimism about the future of their industry despite challenges posed by US import tariffs on automotive sectors.

Alfonso Peña, Cluster Director General of Nuevo León’s Tool Industry

“The manufacturing sector is heavily impacted by the automotive tariff, as reduced sales lead to decreased production demand for tooling. Additionally, steel and aluminum tariffs further diminish the activity of metallic and aluminum products,” Alfonso Peña, director general of the Cluster of Tool Industry in Nuevo León, told El Economista during Tecma in Mexico City.

Despite this, Peña offered a positive outlook for those in the tooling sector, which includes molds, dies, jigs, and assembly tools. “Established companies in Mexico with their supply chains previously in Asia or China are now seeking local providers to comply with origin rules,” he explained.

Cluster of Tool Industry in Nuevo León and Coahuila

The cluster, composed of 63 specialized tooling companies for sectors like automotive, plastics, and electronics located in Nuevo León and Coahuila, has seen increased demand and projects to localize Mexican suppliers in high-demand areas such as home appliances, medical devices, and toys. This compensates for the slowdown in the automotive sector.

“Overall, the tooling industry is performing well and in line with last year’s production,” Peña emphasized.

Importance of Tooling in Manufacturing

Tooling is crucial for ensuring manufacturing quality, as exemplified by Lego, a cluster member operating its largest global plant in Nuevo León. Here, high-precision molds are produced to ensure compatibility of pieces regardless of production year.

Although China dominates the mold market due to government incentives and low costs, there is a growing interest in developing Mexican suppliers. Lego’s case demonstrates Nuevo León’s technological capability to host high-value manufacturing.

Uncertainty and Resilience

Felipe Tobin, Commercial Director of Haitian Precision México

Felipe Tobin, commercial director of Haitian Precision México, acknowledged tariff-induced uncertainty but noted that the situation is temporary. With 70 projects on hold among clients, Tobin stated, “This situation is transient. When it resolves, progress will be rapid.”

Haitian Precision México, part of the Haitian Group, operates a 12,000 square-meter plant in Guadalajara since 2023, investing 475 million pesos. It is Mexico’s sole manufacturer of Computer Numerical Control (CNC) machines of its scale, producing 300-500 injection and roughing machines annually used for manufacturing pieces with specific geometries like transmissions or train axles.

The plant employs over 100 workers and supplies companies nationwide, focusing on the Bajío, Monterrey, and Puebla regions. Though primary clients are from the automotive sector, new opportunities are emerging in the aerospace sector.

“We move forward; the need for local manufacturing is stronger than obstacles,” Tobin affirmed.