InterviewChems, manufacturing firms return to a growing Mexico

01 December 2010 19:01  [Source: ICIS news]

By Ivan Lerner

LA QUINTA, California (ICIS)--Manufacturers and chemical suppliers are returning to Mexico after years of production being moved to Asia, a Mexican chemical distributor said on Wednesday.

“They see the quality of labour, and the supply chain is better and more efficient [in Mexico], with a quicker response time,” said Eugenio Manzano, executive director of Mexico-based chemical distributor Pochteca.

Manzano was speaking on the sidelines of the 39th annual meeting of the National Association of Chemical Distributors (NACD).

More importantly is that many of those companies returning to Mexico are chemical suppliers.

“More and more chemical companies are setting up in Mexico, [and] more chemical companies are showing interest in the Mexican market,” Manzano said.

This is because Mexico, with a population of 112m people, has “a growing middle class with a growing disposable income”, and these potential end-product consumers “will demand new and better goods”, Manzano said.

Additionally, the growing middle class, if it follows global trends, will demand more ecologically friendly products. Because of this “sustainable chemicals and green substitutes need to grow in Mexico”, Manzano said.

Manufacturers return or entry to Mexico will also have a probable impact on the US, since roughly 70% “of Mexico’s trade is with the US,” Manzano said.

“So much of the supply chain either starts or finishes in Mexico," he said.

The NACD's annual meeting lasts through Thursday

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By: Ivan Lerner
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