What's driving the woodworking industry in Mexico and what are some trends and statistics? Check out the infographics for details, plus find more market data in the December 2019 FDMC Wood Industry Almanac.
Although third in size and scope when compared to its North American counterparts, the importance of the Mexican market cannot be overstated. Mexico has the second most important consumer market in Latin America after Brazil, and the country’s economy is expected to continue growing, due in part to its open border, NAFTA/ United States–Mexico–Canada Agreement (USMCA), and other foreign direct investments.
According to a report by IHS Markit, operating conditions in the Mexican manufacturing industry improved in October, largely due to rising sales, stocks of purchases and employment. And although business confidence strengthened to a five-month high, production contracted for the fifth consecutive month. On the price front, lower energy and raw material costs coupled with supplier discounts helped drag down input price inflation to a survey-record low, the research firm noted.
An increase in new order flows helped the seasonally adjusted IHS Markit Mexico Manufacturing PMITM to register 50.4 in October, although some respondents noted a weak demand for their goods, the agency noted. Business confidence seemed to improve based on predictions of sales growth, better economic conditions and the launch of new product lines.
With that backdrop, Mexico’s residential furniture and cabinetry market should remain relatively steady, according to information available from AFAMJAL, a major furniture manufacturers association based in Jalisco.
Click on the image to enlarge. for a snapshot of some industry segments, including the furniture and cabinetry markets. Additional statistics on the Mexican wood products market can be found on the various industry segment pages in the December 2019 FDMC Wood Industry Almanac.
The Mexican furniture market has an approximate value of 40 billion pesos, with an annual growth of 3% on average, which represents a business opportunity for Mexican and foreign companies, according to information from Hannover Fairs México, a wholly-owned subsidiary of Deutsche Messe and organizer of the annual Magna Expo Mueblera (MEM Industrial) show. Mexico is the world’s fourth exporter of adjustable height swivel seats, sixth of chairs and metal seats, eighth of chairs and wooden seats and ninth of wooden parts and pieces for furniture. It is also an industry that employs around 100,000 Mexicans.
The average minimum daily wage (wage/hour) in 2018 for cabinetmakers involved in the manufacture and repair of furniture was $114.95 pesos. Carpenters earned $114.95 and an operator of “woodworking machines in general” earned $109.9 pesos per hour, according to research by Statista.
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