Nuevo León’s Efforts to Leverage T-MEC Advantages for Home Appliance Suppliers
The state government of Nuevo León, Mexico, sees opportunities amidst the current tariff climate. Only 51% of suppliers are taking advantage of the T-MEC for exporting their shipments, while others export directly without the benefits offered by trade agreements. This situation was highlighted by Betsabé Rocha, the state’s Secretary of Economy, during the announcement of the 12th National Business Encounter (Enclelac) on August 20 at Cintermex.
Enclelac as a Platform for Industry Growth
Rocha expressed her enthusiasm for Enclelac, stating that it’s more than just an event; it’s a platform to boost the local industry. She emphasized that, despite any trade policies, they see opportunities for growth. Currently, the penetration of commerce and the number of companies ready to export are still low. This presents a significant chance for those interested in entering the relevant electrodomésticos industry, which accounts for over 15% of Nuevo León’s exports and contributes more than 17% to the state’s GDP.
Nuevo León’s Role in Mexico’s Electrodomésticos Industry
Mexico remains the sixth-largest global producer of home appliances, with Nuevo León serving as its industrial hub. The state accounts for over 45% of national production, thanks to its robust supply chain network. The sector is projected to grow by more than 6% in value this year, driven by innovation, artificial intelligence, and the integration of smart technologies into key products, according to Euromonitor and Statista data.
- Global companies like Whirlpool, LG Electronics, Samsung, Mabe, and Hisense have manufacturing plants in Nuevo León and other states, capitalizing on their proximity to the United States.
Why Exporting from Nuevo León Offers an Advantage
Emmanuel Loo, the subsecretary of Investment and Innovation at the state’s Economy department, highlighted a strategic position for Nuevo León. With tariffs rising from 2.5% to 25% due to non-compliance with T-MEC rules, companies providing home appliances are now opting to source materials in Mexico instead of Asia, thus avoiding the 25% tariffs and adhering to origin rules.
Loo emphasized that the electrodomésticos cluster in Nuevo León is capitalizing on rapidly growing sectors like artificial intelligence, data centers, and technology component manufacturing.
He pointed out that Nuevo León plays a crucial role in the production of cooling systems—such as chillers and water-cooling systems—essential for the operation of data centers in the United States. Companies like Trane, Carrier, Gonher, and Vertiv are expanding, developing advanced cooling, server, and critical component technologies.
Loo mentioned that companies like Vertiv are already developing server racks and specialized cooling solutions for data centers, along with a strong supplier base in the region. He concluded that Nuevo León has significant potential to establish itself as a strategic supplier for one of the fastest-growing global sectors.
Following record-breaking investments in the automotive industry—totaling $5.1 billion—Nuevo León aims to achieve a similar milestone in the home appliances sector during Enclelac.
Key Questions and Answers
- What is the main focus of Nuevo León’s efforts? Nuevo León aims to encourage more home appliance suppliers to take advantage of the benefits provided by the T-MEC, export to the United States, and avoid tariffs.
- Why is Enclelac significant for the local industry? Enclelac serves as a platform to boost the local industry by providing opportunities for growth amidst current tariff policies.
- What is Nuevo León’s role in Mexico’s electrodomésticos industry? Nuevo León is a crucial industrial hub for Mexico, accounting for over 45% of national production and driving growth in the sector.
- Why is exporting from Nuevo León advantageous? With tariffs rising due to non-compliance with T-MEC rules, companies are now choosing to source materials in Mexico instead of Asia, thus avoiding tariffs and adhering to origin rules.
- What rapidly growing sectors is Nuevo León’s electrodomésticos cluster capitalizing on? The cluster is focusing on artificial intelligence, data centers, and technology component manufacturing.
