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Are raw materials available in Mexico?

15 Jul 2014

Category:

Yes. The most common example of this is in the automotive. Automotive OEM’s operating in Mexico typically surround themselves with their primary tier 1 suppliers to provide raw materials for assembly operations.

Tier 2 suppliers to companies classified as tier 1, are doing the same with finished components made of metal, plastic, composites, or other materials. A growing number of lower tier suppliers are also emerging in Mexico which provide commodities such as metals, resins, and other raw materials.

However, the vast majority of raw materials and equipment used in maquila operations still originate outside of Mexico and are produced and shipped from the U.S., Canada, Europe, and the Far East.