Manufacturing activity in the country shows a recovery, with 16 of 21 industries that make up the sector with levels above the crisis caused by the Covid-19 pandemic in 2020, driven by progress in the vaccination process that has sustained the reopening of the economy, said consulting firm CIAL Dun & Bradstreet.

Even with ups and downs, the manufacturing sector has managed to recover, in July, manufacturing production grew 1.41% in relation to June, with which the July production level, based on an index of 100 points, is exactly at the same level as the one reported in February last year.

According to a report by the consultancy, the transport equipment, a sector that represents more than 20% of the manufacturing GDP, stopped its progress due to the lack of chips that has affected several industries.

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This sector is preparing for a new expansion process, although it is expected that this will be slow due to the shortage of chips that could be resolved in the first half of next year.

With this rebound in the level of manufacturing production, the consulting firm estimates that Mexico is close to leaving the crisis behind and, in a few months, this sector would be ready to restart its expansion process, which would be based not only on the good performance of its export segment, but also the domestic market.

CIAL Dun & Bradstreet estimates that the manufacturing sector will grow 10.23% this year, after falling 9.9% in 2020, while in 2022 it could grow more than 5% with the expectation of attracting new investment.

The consulting firm considers that investment is still 4.4% below February last year, prior to the pandemic, but it is still almost 18% below its historical maximum of mid-2018.

Check here: Industrial activity in Saltillo above the national average

On the other hand, the used plant capacity of 70% is right now almost at the level of the pre-pandemic and is three points from its peak in the second quarter of 2018 of 81.5 percent.

The expectation of economic and manufacturing growth will depend on several factors, the first will be the vaccination process against the pandemic, where progress is shown, and the second, on the possibilities for the private sector to make investments to meet the growing demand.

In Solili you can consult industrial warehouses in Saltillo, Monterrey and Ciudad Juárez

Original note