Overview of the Tooling Market in Mexico
Monterrey, NL. The tooling industry in Mexico has made progress in replacing imports, but molds and dies are still being imported from countries like China, the United States, Canada, Germany, and Japan. The market size is valued at 5,000 million dollars, with Mexico already producing 1,200 million dollars (24%) nationally, according to Alfonso Peña, General Director of the Tooling Cluster of Nuevo León.
“Approximately 5,000 million dollars are needed annually. Of this figure, 1,200 million dollars have already been substituted through domestic production across the country. The remaining 3,800 million dollars correspond to imported molds for plastic parts, stamping dies, foundry molds, and accessories,” Peña explained to El Economista.
Impact of T-MEC Regulations on Tooling Industry
In this context, Peña noted that major companies in sectors such as automotive and home appliances are striving to comply with the T-MEC origin rules. This has led to an increase in large companies interested in integration, especially those affected by tariffs, during business meetings like Proveedor Automotriz and the recent ENCLELAC Connectivity.
He emphasized that these business events bring together suppliers who can complement the supply chains of large companies. “I would strongly encourage supplier women to participate in these events where senior executives from purchasing and supplier development attend to seek national integration.”
Developing Tooling Providers
According to the Tooling Cluster, the “triple helix” (groupings, government, and academia) help strengthen the local industry’s capabilities. The state government offers support and financing programs through the Secretariat of Economics for small and medium-sized enterprises, such as Impulso Nuevo León, Competitive Pymes, and Innovation.
“We aim to identify the next step for their development, for instance, if a company produces spare parts for dies, we then look into how they can produce the complete die; those who have achieved this are further trained to manufacture more complex or larger dies,” Peña added.
It’s important to note that tooling is crucial in manufacturing, as it enhances production capabilities, enables the fabrication of precise parts, automates repetitive tasks, accelerates processes, and reduces costs by minimizing failures.
“The Cluster has a direct link with the Driven Center, an automotive engineering center that supports companies in design and engineering. At a technical level, we collaborate with the Industrial School and Preparatoria Álvaro Obregón of UANL,” Peña stated.
“We are convinced that education is what will contribute to the long-term economic development of the region,” he highlighted.
Strengthening Production Chains
The state’s Secretariat of Economics has promoted the Program for Strengthening Production Chains to develop projects that increase the integration of micro, small, and medium-sized enterprises (Mipymes) in production chains through import substitution.
Alfonso Peña confirmed that the Cluster has participated in this program for its three editions. “We received support with 20 million pesos in 2022, 20 million pesos in 2023, and 30 million pesos in 2024.”
For example, in the 2024 call, the Cluster won several projects, including: Heavy Duty EV Fabrication of eight sets of tooling; strengthening the production chain of mechanical components with complex geometries and high-performance machined parts; and an Integral Project for the manufacturing of High-Level Structural and High-Quality Standard Steel Industrial Racks.
Key Questions and Answers
- What is the size of the tooling market in Mexico? The tooling market in Mexico is valued at 5,000 million dollars.
- What percentage of tooling is produced domestically in Mexico? Mexico produces 24% (1,200 million dollars) of the tooling needed.
- Why are companies focusing on T-MEC regulations? Companies aim to comply with T-MEC origin rules to ensure their products meet the required standards for various sectors.
- How does the Tooling Cluster support local businesses? The Cluster connects small and medium-sized enterprises with government programs and financing options to enhance their capabilities and promote domestic production.
- What is the significance of tooling in manufacturing? Tooling is essential for expanding production capabilities, ensuring precision, automating tasks, accelerating processes, and reducing costs through minimized failures.
- What is the Program for Strengthening Production Chains? This program, supported by the state’s Secretariat of Economics, aims to increase Mipymes’ integration in production chains through import substitution.
