In October, we (Conard) exhibited at Baja Mak 2010 in Tijuana, Mexico. What an education!
The first part of the education is about a resource that–I would venture– very few American manufacturers know much about…including me. The United States Commercial Service is part of the Department of Commerce. The mission of USCS is to assist American companies develop business in other countries!
Our visit to Mexico was coordinated by Dennis Simmons, Commercial Officer for the Connecticut District Office. (860-638-6950; dennis.simmons@trade.gov) Outside of Connecticut, visit trade.gov to find your nearest USCS contact. When these folks say “we’re from the government, and we’re here to help you”…they really mean it!
Dennis recruited 9 small manufacturing companies from CT and western MA to exhibit at the show. More than that, he and his colleagues coordinated all of the details, including the show itself, lodging, local transportation, escort through customs and immigration in both directions, as well as being our translators and social guides.
I can’t say enough about Dennis Simmons and the trade mission staff in Tijuana: Monica Rosas, Alejandro Delgado, Larisa Escobar and Ruth Reyes. These great folks made what could easily have been a bewildering and –at least linguistically– daunting experience, easy, enjoyable and productive.
We particularly appreciate the welcome from Consul General Steven Kashkett who hosted a networking breakfast at his home where we were able to meet and have quality conversations with 20 or so business leaders from Tijuana. The senior US trade official responsible for all of Mexico, Minister Counselor for Commercial Affairs Ann Bacher also made time in her schedule to meet us.
The second part of the education is about the business opportunities for American manufacturers in Mexico. Over the course of several days, and many conversations with senior managers from Mexican manufacturing facilities, we were told repeatedly how pleased they were that American manufacturers would visit them and seek to do business. With aerospace and medical as the fastest growing segments of the Mexican manufacturing sector, the need for a wide range of parts and services that can meet the most demanding standards is growing.
The emerging trend is called, variously, “on-shoring,” “re-shoring,” or “near-shoring”…all essentially describing another migration of manufacturing activity, this time into the Western hemisphere.  The supply lines from Asia can be long and unwieldy. The quality of raw materials and workmanship may not satisfy the increasingly demanding requirements. And, the Asian economies’ increasing home consumption of their industrial output reduces the available export capacity.
All of these factors are contributing to a growing need for new sources of precision components for the 6500-plus assembly facilities in Mexico.
Quite without realizing it, we have already experienced the difference that Mexico makes. A long-time customer opened an assembly operation in Mexico about a year or so ago. It didn’t really register with us as a big change, just a ship-to address. What did get our attention is a six-fold increase in sales over historic levels. Another customer has moved an assembly operation from India to Mexico and is forecasting 3 times the level of business they used to do.
Mexico has our attention now.