For the 20th consecutive month, Baja California grew in manufacturing production, registering a growth of 14.5 percent in the last quarter.
The success follows on the heels of one of the best quarters in the history of the manufacturing sector. In the first quarter of 2016, Baja California achieved a growth of 18.5 percent in manufacturing production value. This was the highest performance in Mexico’s border region and the fourth highest increase nationwide, according to the Montlhy Survey of the Manufacturing Industry (EMIM), published by the National Institute of Statistics and Geography (INEGI).
The secretary of Economic Development (Sedeco) of Baja California, Carlo Bonfante Olache, said the April 2016 production is noteworthy in that ittied the industry’s own record of 20 consecutive months of manufacturing production growth.
The secretary explained that the sectors registering the highest growth in the first quarter of 2016 were machines and equipment fabrication, with 80.7 percent; the wood industry, with 29.6 percent; paper making, with 26.8 percent, and transportation equipment fabrication, with an increase of 26.3 percent.
Mexico´s strong manufacturing sector allows established manufacturing industry to take advantage of the strong dollar. Manufacturers price their products in the local currency, so if the peso weakens, Mexico’s products look a lot more attractive to foreign buyers, besides it favors the value of products manufactured by exporting firms.
From January to April this year, manufacturing jobs increased by 3.3 percent,. Production growth surpassing that of the personnel growth indicates that firms are investing in modernizing equipment, which in the near term is causing an improvement in income levels and hiring conditions.
Baja California will continue working on megaprojects to foster manufacturing competitiveness, such as the modernization of the Tecate-Tijuana rail road, the desalination plants of San Quintin and Rosarito as well as the Port of Ensenada expansion, and Ojos Negros Airport, these megaprojects will give greater assurance to manufacturing firms looking to invest in Baja California and, with the construction of land and air communication technology, will give them the opportunity to reduce costs in the transportation of goods.