In the wake of Trump’s fees, Mexico’s economy requires a review: our CEO’s perspective

The quick trends in Trump’s fees and Robotics and AI should be an awakened call to Mexico.

Part 1: How did we come here?

Part 2: Why is it necessary to review the Mexican economy?

Part 3: How would it be to review the Mexican economy?

The aim of this three -part series is to reflect the growing trends of trade security (fees), AI and Robotics, considering the potential impacts on Mexico, and developing a debate on potential solutions. Please share your thoughts in the comments section, and we will get a further inspiring and impressive discussion and discussion.

Part 2: Why is it necessary to review the Mexican economy?

Mexico’s economy is heavily dependent on the manufacturing sector, and its manufacturing sector is very relying on the United States.

How much reliability? Almost 80% of all of Mexico is exported to the United States… 80% !!! More than 80% of vehicles produced in Mexico are traveling to the United States… 87% Auto Parts….

Now, imagine a moment that the United States can produce more of its own products. Imagine that the advances of artificial intelligence and robotics make it more possible to produce products with lesser people.

It may seem impossible in the last 30 years, but what if it doesn’t go ahead? What is the impact on Mexico and its employees? Due to this risk, what to do Mexico? What can Mexico do?

About 25%of the Mexican people who work properly work, nearly 14 million people work in the manufacturing sector. On average, 50% of foreign direct investment in Mexico in a particular year is in the manufacturing sector. Imagine the impact on the economy and society for a moment if there is even a minor changes in those numbers.

What kind of review do you need for Mexico’s economy?

In the wake of Trump’s fee chaos, Mexico’s economy needs a review: a perspective from our CEO, Part 1

To start answering those questions, let’s back first and remember the key elements of the Mexican economy. I will make the analysis easier to keep the explanation easier.

About 30% of the GDP of Mexico is associated with manufacturing and industry. Travel is 9%; Sending money 4%; 3%of agriculture; 2%of the oil. The other half of the economy is linked to the other components of the service sector.

As mentioned earlier, almost 80% of the products produced by Mexican are exported to the United States. Mexico has more than 70% of international audiences every year. About 78% of Mexico’s agricultural exports go to the United States. All the money sending is from the United States.

Mexico is a country that depends on another country in the world. A common manifestation of former President Porpirio Thiaz is, “Poor Mexico, is far from God to and to the United States.”

They recommend that many people I speak that Mexico start to try to reduce the pro -US state of the United States, and look south of the markets in Mexico Central and South America. Or develop close relationships with Europe. Or develop a deep relationship with China. I think this thought is defective for many reasons:

1. No country is consumed like America. No one else in the neighborhood of the United States does not even buy the United States.
2. Many countries, especially South America and Europe, have a population problem. Their birth rates are declining, their people are older. In a nutshell, it will be a long time to return to the “high consumption” economies that can be sold for products made from Mexico.
3. China has a high production problem and has trade deficits with almost everyone. It is not very possible that Mexico can develop its economy by selling to Chinese consumers.
4. Securityism is on the rise. As the population is declining, I have not seen any other significant opportunity to sell its manufactured products by Mexico by reducing the growth of GDP, increasing the distribution chain worries and increasing nationalism.

As a result, I think that Mexico is undoubtedly accepted that its fate is tied up with the United States, the best or bad, and in the coming future.

The country must also recognize that its growth model can be increasingly in danger as the low -cost supplier of products manufactured to the United States. Although the “United States First” fare threats are silent, the rapid rising tendencies of Robotics and AI in the production may indicate the lowest employment in this field – many experts to be believed to be believed.

Mexico must begin to reassess urgently what its main economic drivers are going forward. This is not in any way to say that production is no longer important.

The value chain in Mexico must continue to move to maintain and grow investment and employment in this sector. But it is unlikely that production will be the development and employment creation for the economy in the past.

The country must start by improving many of its strengths in this world of uncertainty. Name a few:

1. Geographic proximity to the United States
2. Low life cost
3. Cost of low labor
4. The best weather
5. Service
6. Deep culinary traditions and history
7. Deep cultural traditions and history

Taking into account those strengths and others, and in the risk that the manufacturing sector is not past employment and economic machinery, Mexico must start investing in different (non -manufactured) sectors to further divert its economy and provide employment and economic growth to its people.

In each of these areas, we need a step change from what we have historically seen in public and private sectors. The evolution of the less relying on the production of economic growth and employment is less time, and success in each of these areas does not guarantee success. But I am sure that Mexico can better control its own destiny by expeditious and promoting, prioritizing the investment to the following areas.

They are as follows:

1. Tour
2. The distribution of health care
3. Senior maintenance
4. Housing/Living for Foreigners
5. Eating
6. Health
7. Infrastructure to support all of the above

In part of this series, I will examine each of these parts, and I think each one is important, and how can Mexico thrive in each of them. The third and final part of the series are MND.

Travis Pembenk Chief executive Mexico News Daily ANT has been living in Mexico for almost 30 years, working or playing.