Airport and Ground Support Equipment 

From 1990 to 2006, Mexico ranked in the top 30 aerospace markets for U.S. exporters – a key, ever-advancing sector within aviation. During this period, export sales from the U.S. to Mexico grew by an annual average of 23.87%. Over the last few years there has been significant investment in manufacturing facilities by Bombardier, Honeywell, Ellison Surface Technologies, Hawker Beechcraft and Airpas Aviation, among others. Aerospace groups have announced that they will invest an additional $279M into the sector over the next few years. The Mexican government is working to attract more aerospace manufacturing investment - creating opportunities for U.S. suppliers.
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Automotive Parts and Supplies

Fifty eight percent of the automobiles sold in Mexico are imported, of which 75% come from the U.S.  Total production of vehicles in Mexico for 2007 was 2,101,317.  The Mexican Association of the Automotive Industry (AMIA) stated that exports were 1,627.000 units.  Of the total local assembly of units, only 474,217 were sold in Mexico.  The total number of units sold was 829,880, of which 355,663 were imported from the United States.

Parts, equipment and first and second tier components from the U.S. have experienced an increase in exports due to increased Mexican production of new models that have shifted from U.S. assembly plants.  Click here to learn more about this sector.

Education & Training Services

Mexico remains the seventh-leading place of origin for students coming to the United States, and is one of only four non-Asian countries among the top ten. Although enrollment in 2006 fell slightly by 0.8%, it has steadily increased since the mid-90s.
In the academic year 2006/07, there were 13,826 students from Mexico studying in the United States. The majority of Mexican students study at the undergraduate level (57.8%) with 31.2% in graduate studies and 4.9% other programs and 6.1% in optional practical training.  Click here to learn more about this sector.

Energy Sector

The demand for imported equipment and services for the energy sector increased by eight percent from 2006 to 2007.  U.S. exports to Mexico also have grown at an average of 8.5 percent during the same period.  The total market grew at an average of 5.0 percent annually from 2006 to 2007.  The competition will continue to come from Japanese, French, Chinese, Taiwanese, German, and Canadian companies.
Mexico’s Energy sector will continue to be a priority during the period 2007-2012, therefore, large budgets are expected to be assigned to each of the three major government agencies responsible for the maintenance and investment of energy infrastructure. Government Owned-Petroleum Company (PEMEX), the Federal Electricity Commission (CFE) and Luz y Fuerza del Centro (the federally owned Mexico City power company) have been authorized by the Mexican Congress a total budget of over USD35 billion during 2008.  Click here to learn more about this sector.

Electronic Components

In 2006, about 32 percent of all electronic components imported to Mexico were from the United States, representing a 3.73 percent increase from the previous year.  Nevertheless, China continues to gain market share and had an increase of 58 percent, while Japan and Korea had increases of 11 percent and 75 percent respectively.  Nevertheless, there are competitive advantages for Mexican electronic firms to import components from U.S. suppliers under NAFTA, including short lead times in transportation, virtually 100 percent duty-free electronic components, and streamlined customs procedures.
In recent years, Mexico’s exports of electronic products have considerably increased by almost 20 percent.  In 2006, electronics exports reached US$ 54.7 billion, almost a 19.3 percent increase from 2005.  The main manufacturing sub-sectors continued to be information technologies (33%) and audio and video (30%).  Mexico has two main centers for the electronic industry:  Tijuana, Baja California and Guadalajara, Jalisco.

Environmental Sector

This sector includes the sub-sectors of Pollution Control Equipment (POL) and water resources (WRE) equipment and services.  The National Infrastructure Program 2007- 2012, identifies several important water projects to be implemented in various major cities of in Mexico, therefore, the market is expected to continue growing. The total market reached an annual average growth of 3.7% during 2006-2007.  Major competitors in this market are French, German, Spanish, Canadian, Great Britain and Japanese companies.  Click here to learn more about this sector.

Franchising

Since 1998, franchising has been a stable and growing industry in Mexico generating over 800 thousand jobs and now represents 6% of GDP. Mexico has also become a mature market in the franchise sector and has also expansion of franchise concepts to other countries in Latin America, the United States and Asia.
In 2007, franchises generated sales over 8 billion USD of revenue. The sector has been proving that the franchise business is an important source of job creation, self-employment and wealth. The sector has strengthened considerably in the past few years, positioning Mexico as the 8th leading nation worldwide in franchise development. Conservative estimates indicate that this sector will grow between 14-16 percent in 2008. Click here to learn more about this sector.

Hotel and Restaurant

The Mexican restaurant industry is constantly evolving and in need of new technology. The industry reported annual sales of about USD$16 billion, although this figure probably understates actual sales. The lack of technology (especially in cold chain equipment) in Mexico and the increasing sophistication of the Mexican consumer generate business opportunities for U.S. exporters of equipment for the restaurant industry.
In 2006, the total market for this segment surpassed USD 1.7 billion. The imports from the United States during 2007 increased almost two percent compared to 2006. The industry is spread out from the northeastern to the central part of the country and almost 45 percent of the industry is concentrated in Monterrey, Guadalajara and Mexico City. Click here to learn more about this sector.

Housing & Construction

The last decade has seen some improvements in Mexico’s infrastructure network, especially improved access to water and sanitation, electricity and telecommunications. However, Mexico’s infrastructure investment has continually declined since 1988 share from a 7% of GDP to 3%. This has directly corresponded to a drop in Mexico’s competitiveness with respect to other counties and regions of the world. Highly competitive countries are typically investing over 10% of their GDP in infrastructure projects and also allowing more foreign direct investment in major projects. Mexico has much ground to make up in infrastructure development if it wants to increase its competitiveness and attractiveness to foreign investors. Click here to learn more about this sector.

Internet and Telecom

The fixed and mobile markets in Mexico have enjoyed constant growth over the years, more than doubling GDP growth. Fixed lines have reached over 20 million users, and mobile communications today have over 56.5 million subscribers. Telecommunications services are becoming more readily available due to the increased penetration of fixed lines, lower rates and an explosive growth in the wireless subscriber base. Cable TV and wireless industries will be more aggressive and will show strong innovations in the near future. Technologies such as PLC, WiMAX, WiFi, and cable will be the tools for increasing penetration and offering newer services. The industry sees the coming of more mobility in the country along with smarter devices. Click here to learn more about this sector. Travel and Tourism

The United States is the most important destination for Mexican travelers. In 2005, more than 12.8 million Mexicans traveled to the United States, representing 26% of the total foreign arrivals to the country. Mexico is the second source of international travelers to the United States just after Canada. Additionally, travel to the U.S. interior grew by 15% to register 4,605,268 arrivals. The solid growth ranked Mexican travel to the U.S. interior larger than the number one overseas visitor market - the United Kingdom (4,344,957 arrivals).
This is good news for U.S. destinations and tourism services. U.S. companies need to market themselves aggressively in Mexico to tap into this lucrative market. Click here to learn more about this sector.

Packaging Equipment

According to reports from the Packaging Machinery Manufacturers Institute (PMMI), Mexico is the second largest buyer of equipment from the US in the packaging industry, only preceded by Canada. In 2007 alone, the market reached an average of US$ 460 million. Spare parts contributed another US$ 65 million, making the total value of the industry over a half billion dollars. In 2006 the Mexican economy grew over 4.5%, boosted by external demand as well as the local market, and the industrial sector also kept growing. Last June, national industrial production increased 6.9%. Exports, manufacturing production, and construction made an important impact in the expansion of the industry as a whole.