Issue link: http://palletcentral.uberflip.com/i/1436421
PalletCentral • November-December 2021 21 • Key sectors served are manufactured goods, industrial goods, food & beverage, consumer goods and pharmaceuticals n Supply Chain Benefits: Under the USMCA agreement and COVID-19 realities, multinational corporations are choosing to nearshore (from Asia) or establish a plus-one facility in Mexico. is allows these companies to maintain preferred (no tariff ) access to the North American market and to secure supply chains that were disrupted during the pandemic. n Workforce and Product Dynamics: Mexico has a young, skilled workforce. e Mexican economy has undergone a dynamic transformation as a manufacturing powerhouse: • It is the United States' second largest trading partner and ranks 1st in flat-screen TV production; 4th in light vehicles; 5th in auto parts; 6th in electronics producer; 12th in serving the aerospace industry. • IMMEX is a tax incentive program for manufacturing, maquiladora & export services that drives business in Mexico. • ere are five aerospace clusters in Mexico in Baja California, Chihuahua, Nuevo León, Queretaro and Sonora. • Mexico is known as an automotive giant, with 14 Mexican states having an automotive presence that accounts for 29 million direct and indirect jobs. Research has shown this is the most palletized industrial sector in the country. • ere are strategic, transformative state-led initiatives in Baja California, Jalisco, Nuevo Leon, Queretaro to attract industry 4.0. n Large Retailer Initiatives: Online retailers, direct-to-consumer, and logistics operations such as Amazon, MercadoLibre, Sigma, DHL have built and opened state-of-the-art distribution and warehouse centers across the Republic. is accounts for a massive year-over-year e-commerce growth in Mexico of 81%, also serves as a gateway for these companies to Latin America. Making Pallets a Priority in Mexico e NWPCA has several longstanding members, close to 30 years, located in Mexico, and also has gained new members since the launch of this initiative. is reflects the efforts thus far, yet there is more to do. "We are working to create a council that will reflect the needs of the Mexican wooden pallet industry," says Carr. "As an internationally recognized pallet association, this effort provides further credibility to what NWPCA is doing." "is project has allowed me to begin building relationships with our Mexican members on behalf of NWPCA and to learn their stories," says Carr. "We're talking about medium and large-sized family- owned businesses – located in the Bajio, Central and Northern Mexico – that form the backbone of their communities. ey embody can-do attitudes and an entrepreneurial spirit which reflects the values and drive of the Mexican wooden pallet industry. iStockphoto.com/AlexLMX Mexican wooden pallet market is dynamic and growing. The research shows that the pallet industry underwent a period of consolidation because of the COVID-19 pandemic, yet growth projections for the industry remain strong.