Employee perspectives - Alejandro Silva

I'm an engineer to drive success in Mexico's manufacturing sector.

Here Alejandro Silva, President of Renishaw Mexico and Central America, explains why now is an exciting time for manufacturing in Mexico and how Renishaw plays a part.

Mexico has always been heavily embedded in the manufacturing industry — it has long been established as a hub for automotive engineering, the aerospace sector and heavy goods manufacturing. In the last few years, we've also seen growth in new sectors, such as medical devices and semiconductors. Automotive is our largest market for exports, with many leading automotive manufacturers, such as Ford, Audi and Toyota, operating in the area. The International Trade Association reports that Mexico produces 3.5 million vehicles annually, 88 per cent are exported, with the majority being sent to the US.

One of the things contributing to Mexico's success is the increasing adoption of advanced digital technologies such as robotics and additive manufacturing (AM) — though these are still in the early stages of adoption. Design for AM could be integral to developing more efficient parts for engines and components in aerospace and automotive, while digitalisation will be key to collecting actionable data that manufacturers can use to make more informed decisions.

Nearshoring operations

Interestingly, the pandemic triggered an industrial phenomenon in Mexico, with many American and European businesses looking at nearshoring. To speed up production times, many industry leaders, particularly in the United States, are looking to move production closer to the final consumer, in a bid to reduce costs and shorten lead times.

Automotive is definitely a sector that will benefit from nearshoring. In the next decade we'll see production volumes of internal combustion engines reduce and more companies producing components for electric vehicles, whether they are an OEM or tier one/tier two supplier. As a result, there has already been massive investment into our region. Tesla, for example, recently announced a ten billion US dollar investment to build its new electric vehicle manufacturing facility in Nuevo Leon, due to open in 2026/27, which will support over 300 local suppliers.

At Renishaw, we've seen the effects of nearshoring and the acceleration of electric vehicle production. We've just begun working with a global leader in automotive manufacturing to provide precision measurement equipment as it transitions to building new engines for electric vehicles. Our team will help OEMs to improve efficiency across operations with machine tool probing and co-ordinate measuring machines (CMMs). As investments from global industry leaders continue across the region, we'll see the development of a more skilled and active workforce, as well as a rise in wages to reflect the importance of the industry.

Expanding our footprint

Our subsidiary is always evolving, making my role as President really exciting. We're a relatively new part of the business, and our dedicated team has the energy and potential to work towards bigger milestones as we grow.

To expand the customer base at the subsidiary, as well as to help grow the industry in general, we want to make sure we're doing more than just selling products. It's about understanding market demands, as well listening to our customers and our team to understand everyone's needs.

Manufacturers, for example, typically come to us with a problem to solve. Often, they think a specific product or tool could fix it, but sometimes the underlying problem isn't actually what they were expecting. By listening, investigating and discovering the problem, we can provide real change. Sometimes it could be a quick fix that doesn't rely on us making a sale, but it builds trust. Once manufacturers can trust the advice of suppliers like Renishaw, it's a done deal.

Growth is integral to meeting the needs of our sector, and we require skilled and engaged people to deliver this. Creating a culture of trust means that we can cultivate skilled employees as the industry becomes more competitive. As nearshoring brings more opportunities to Mexico, the industry must consider how to continue building skilled employees, including looking at how we can give students the experience they need in the early stages of their career to bridge any potential skills gaps.

The next few years look exciting for Mexico and Central America. As well as the investment we'll see from the expansion of electric vehicle production, we'll see changes in technology that influence the industry. For example, as industrial robots become cheaper, we'll see more manufacturers in our area invest in automation, enabling the growing workforce to move away from repetitive tasks and into more creative roles.