Mexico Aims For NAFTA-Style Growth Boost From Energy Reform
August 22, 2013
Manufacturing in Mexico set to show growth due to profitable sector reform; government looking to significantly improve its ranking amongst competitors.
Mexico manufacturing has become involved in discussions regarding the country’s state-run energy sector, specifically as it pertains to growth during a recent energy reform. Under President Enrique Pena Nieto and his established reform, the Mexican government has hoped to significantly improve its ranking amongst competitors while seeking improvement in its energy output and development to investors. Recently, Mexico manufacturing has been a viable option for companies looking to reduce their production costs – and transportation costs – from doing business in such locations as China. Because of its close proximity to the United States, Mexico represents a strategic alternative for lower-cost manufacturing. Now, with the government’s interest in energy and its reform underway, the country is looking forward to sharing its unique industry with private energy firms.
Interesting to note is how Mexico’s energy sector has been closed to foreign governments for the last 80 years, allowing for neighboring countries such as the U.S. and Canada to now participate in this “progressive movement” spearheaded by President Nieto. A new relationship in this way could allow the United States, potentially, to utilize their progressive technologies while Mexico manages its deep-water oil deposits. Mexico, home to an educated, highly-skilled and motivated workforce, represents a global competitiveness platform that other countries can become part of by manufacturing in the country – this energy reform is poised to take this to the next level, according to government officials.
In further Mexico renewable energy news, the country has announced it is at the forefront in solar and wind project concept mapping, citing its “huge manufacturing presence” as it pertains to pursuing power sources other than fossil fuels. Recent U.S. and United Nations investigations have indicated Mexico is “leading the way” in the development of additional “green” energy programs, especially in the manufacturing sector. Moreover, during a period of booming Mexican manufacturing, the UN Environment Program (UNEP) has been reported praising the country on its creation of more low-carbon green energies designed to focus the nation on green energy manufacturing – both today and in the future. A UNEP representative has been quoted as saying, “Mexico is jumping on the global trend bandwagon to go ‘green’ with the development of more solar and wind manufacturing and technology performance.’”
The U.S. and other foreign countries understand the importance of emerging economies in the realm of cost-competitiveness for wind and solar manufacturing, thus explaining the outpouring of investments from such nations as surges in green energy spending steadily grows. A U.S. Department of Energy report has noted how “investments in environmentally-friendly energy sources are shifting to developing nations such as Mexico with its energy and grid construction” that is also providing “huge investment openings for U.S. and other foreign company investment.”
Indeed, manufacturing in Mexico is more viable than ever.