Updated: Jun 24, 2020
Over the past three months, AMT Latin America has scheduled webinar sessions with key stakeholders who represent the bulk of the consumption of manufacturing technology in Latin America–consumption worth $5billion in 2019. Regardless of how the economies are implementing post-COVID strategies, the general opinion is that consumption will surpass $5.5 billion by 2023, making the region one of the various key markets around the world worth paying attention to.
Below, find a recap of the comments from the more than 15 entities with whom AMT works and collaborates:
Consumption of manufacturing technology in the mold and die markets will help sustain the region and will ensure a resurgence of that industry. As an example, AMMMT and ABINFER, the mold and die manufacturers associations for Mexico and Brazil, report a total compounded consumption of product above $5 billion with documented initiatives by all the major players to increase local production. Presently, the vast majority of the technology is imported. One can also add the Colombian manufacturing base that is focused on strengthening the mold-making capabilities in-country to capitalize on the trade agreement recently signed with the United States and their participation in the APEC.
As in all the major economies, regional trade shows like Expomaq or FABTECH in Mexico, FEIMEC in Brazil, FIMAQH in Argentina or FIB (International Bogota Show) in Colombia were canceled for 2020 or postponed until 2021. The latter will create a significant opportunity for your company, a strong provider of manufacturing technology, to capitalize on the rebounding market in 2021 and beyond. Traditional suppliers of manufacturing technologies in all these countries will no longer be competition, or they will seek to expand their product line, offering a market-entry opportunity for your company. For more information on how to participate at the shows or join the Emerging Technologies Center showcase that AMT presents at the aforementioned shows, contact AMT Latin America.
Market fundamentals in all the major economies will expect a somewhat strong recovery, starting with Brazil, where the demand for goods and services is sustained through their 210 million citizens; to Mexico, where the kicking in of the new USMCA, plus the reshoring to the Americas activities, are proving to become key drivers for the increased demand of manufactured goods. Mexico reached the impressive sum of $380 billion in manufactured goods in 2019. The auto parts manufacturers association, responsible for a third of the revenue of manufactured parts, forecasts a reduction in the output of their members – around 30% – without taking into consideration initiatives associated with the increase of the NAFTA content or the reshoring projects. Colombia’s and Argentina’s economies of similar size, in regard to population and consumption, show different projections of a rebound. Colombia´s economy in Q1 2020 showed a strong 3.7% GDP growth, and Argentina is in the middle of a debt-restructuring initiative, but both countries have a bullish perception of 2021 and beyond.
The major infrastructure projects launched in the region are bound to trigger additional consumption and demand of manufactured goods in the next growth cycle starting in 2021: Argentina with shale oil and lithium; Brazil with petrochemicals and deregulation; Mexico with the Trans-Isthmian highway, airport, and railroad; and Colombia with the strengthening of their manufacturing industry.
The Latin American markets are sensitive and expect a new value proposition as it pertains to the sourcing of manufacturing technology and industrial solutions. Tomorrow, more than ever, the expectation of a strong or proven local presence will be a key attribute to securing access to projects, and the new service model is one that AMT members should take into consideration when seeking to act in the international markets of the Americas. AMT, through the local staff, has put in place services and support programs oriented to create a physical presence while limiting the travel exposure of our members during the pandemic and even beyond, as some of the sanitary practices adopted during the pandemic are here to stay. Please contact AMT for more on Field Service Support and Senior Executive Sales calls, a new product launched to allow current projects to continue moving forward without exposing U.S. personnel.
AMT has also established strong relationships through collaborations with technical schools and universities in Latin America, from Mexico, Colombia, Argentina, and Brazil. This allows our members to replicate demo sessions or conferences by capitalizing on the infrastructure of the universities, taking advantage of the talent pool established by AMT, and, with our facilitation, gaining access to domestic agents who can help members boost their market intel and access.
As you can see, the interactions between the end-user community and AMT is quite strong in the Americas; the opportunities to create stronger professional relationships as related to sourcing and becoming the primary source of advanced manufacturing technology solutions are well-perceived in the region. The industrial sectors are showing resilience, and their thirst to expand and grow while developing domestic markets makes the region a great opportunity for expanding and increasing your potential ROI by taking advantage of the resources deployed by AMT. For more information, contact Carlos Mortera at CMortera@amtonline.org.