MEXICO CITY - The metal-mechanic industry includes everything from screw manufacturers to equipment producers, and the National Chamber of the Transformation Industry (Canacintra) is seeking to boost this sector through certifications, greater linkage and technification of production plants, explained Pablo Alberto Briseño Alonso, liaison president of the metal-mechanic branch of the business organization.

The metal-mechanic industry is made up of 18 branches and the lack of an industrial policy aimed at promoting this sector has limited the growth of some of them. For example, according to data from the Ministry of Economy, Mexico currently imports about 90% of the machinery and molds used by the industry from the United States, Europe and Asia.

To boost the metal-mechanic industry, Briseño Alonso considered it necessary for companies in the sector to link up with research centers or academic institutions in order to make progress in the production of high-tech products, such as equipment or molds.

There is also a lack of communication between companies in the sector, as they often do not know each other and this limits the creation of alliances or production chains. Briseño Alonso considered that if small companies could add productive capacities they could insert themselves in chains -such as the automotive or aerospace industries- that demand volume, on-time deliveries and quality and service guarantees, said Briseño Alonso.

Finally, there is an urgent need to formalize processes and practices through certifications, since currently the modus operandi of companies -especially SMEs- depends on the owner in turn and not on fixed standards. Briseño Alonso reminded that companies can turn to the Ministry of Economy to finance part of the cost of certification.

In Mexico, there are close to 2,800 companies dedicated to the manufacture of machinery and equipment, 541 manufacturers of forged and stamped metal products, almost 10,000 manufacturers of metal parts and screws, as well as 675 manufacturers of metal coatings and finishes, according to data from Inegi's National Statistical Directory of Economic Units (DENUE).

Automotive: opportunity for metal mechanics

The metal-mechanic sector can take advantage of the boom in the automotive sector to insert itself into this productive chain, for example, with the manufacture and repair of molds and tooling, said Briseño Alonso.

Molds and tooling are practically not produced in Mexico due to the cost of technology, the limited supply of special steels and the lack of specialized labor, so the automotive industry established in Mexico buys and repairs them abroad, mainly in Europe or the United States, said Arturo Rangel, president of the Foreign Trade Committee of the National Auto Parts Industry (INA).

All these difficulties make the production of molds in the country more expensive, however, Rangel considered it important for Mexico to start producing them, as it would trigger technological development and economic spillover. "A specialized mold costs an average of 100,000 euros. Of course it is good business," he said.

Rangel said that in order to detonate the production of automotive molds and tooling in Mexico, tax incentives are required to stimulate the development of this industry, greater availability of raw materials (special steels) and training programs to train specialized technicians.

Source: http://www.manufactura.mx/industria/2013/04/02/canacintra-busca-impulsar-sector-metalmecanico