Monterrey Leads the Way in Metal Fabrication: What This Means for the U.S.

Monterrey has emerged as a world leader in the steel and metal fabrication industry. This is specifically valuable for U.S. and other foreign manufacturers working in the construction, automotive, and engineering sectors. With many steel companies in Mexico introducing a reliable rotation of suppliers, this region is also gaining popularity due to its reduced costs, competitive labor, and accessible transportation.

On a global scale, metal fabrication services reported a projected growth from USD 20 billion in 2021 to well over USD 29.46 billion by 2029, per an analysis provided by Data Bridge Market Research. The increase in advancements, such as robotics and computerization, has caused this spike in the market, most notably in the automotive and aerospace industries.

To address the demand, many centrally-based U.S. manufacturers are turning to Monterrey for production opportunities to fulfill their metal fabrication needs. This includes automotive leaders like Tesla and Welded Tubes. And, as a way to create a seamless transition for those new to manufacturing in Mexico, many are choosing to benefit from shelter manufacturing services.

A shelter company can help U.S. and other foreign operators secure a viable industrial site and launch production in a timely and cost-effective manner. They can benefit from the advantages of nearshoring to Mexico without having to set up their own entity.

Why American Manufacturers Are Choosing Monterrey

Steel fabrication requires skilled technicians with experience in transforming raw materials and shaping them into their desired forms. This includes job roles like welding, burning, and machining.

As a leader in metal fabrication, Monterrey has also adopted technology, such as 3D printing and laser cutting, which has been valuable in creating distinctive solutions for complex manufacturing processes. Consequently, many U.S. manufacturers focused on steel production and metal fabrication services are realizing the best labor pool with these specialized skills may be found in Mexico.

Additionally, the focus on Monterrey gained renewed interest following the North American Leaders’ Summit in 2021 when the chairman of a 70-year-old Monterrey-based steel company urged leaders to “explore ways to foster and strengthen North American supply chains to face the challenges of China and other countries.” Since then, there have been other trade incentives among the three North American countries to keep supply chains localized and relocate production from China to Mexico.

How Shelter Services in Mexico Can Ease the Transition

As Monterrey continues its rise in global recognition for the superior quality and strength of its steel and metal products, competition among sectors will also increase. U.S. and other foreign manufacturers new to operating in Mexico have the advantage of working with a shelter company to get production up and running quickly.

Shelter manufacturing services start with a site selection analysis to narrow down options when choosing an industrial hub and facility that best fits a company’s needs. This is in addition to recruiting qualified workers in the area to fulfill the metal fabrication and other technically skilled roles.

Other notable benefits of shelter services in Mexico include minimized risk and liability, reduced costs, and an ability to maintain full production control.

To learn more about the full scope of shelter services in Mexico and if Monterrey is the best region for your company to start production, contact IVEMSA today.

Sources:

https://www.globenewswire.com/en/news-release/2022/12/22/2578882/0/en/Metal-Fabrication-Market-Size-to-Surpass-USD-29-46-Billion-by-2029-Share-Growth-Demand-Global-Trends-Challenges-and-Competitive-Outlook.html

https://www.prnewswire.com/news-releases/mexican-steel-maker-urges-north-american-leaders-to-meet-challenge-of-improper-economic-conduct-of-china-at-dc-summit-301428369.html