According to the analysis of the Association for Manufacturing Technology (AMT), Latin American economies, including Argentina, Colombia, Brazil, Peru, Ecuador, Mexico and Chile, although to varying degrees they will experience a recovery in ‘V’, it is also projected for the United States.
“This Covid-19 crisis is a unique global opportunity for all major economies to re-evaluate the risk and competitiveness of their operations and supply chains, not only through cost-per-piece, but involving logistical cost, opportunity cost, and inventory cost,” said Carlos Mortera, AMT’s international Latin America director, and mentioned that this will bring opportunities for the region.
In the case of Mexico, Mortera anticipated that there will be opportunities with the entry into force of the Treaty between Mexico, the United States and Canada (T-MEC), with the trend towards reshoring and nearshoring to relocate production plants outside Asia and for the recoupling of global supply chains.
One thing that has left the pandemic, according to the association’s manager, is that the factories will have to reinvent themselves. In the video conference “Manufacturing and trade of capital goods in the new normal”, organized by the Mexican Association of Machinery Distributors (AMDM), the specialist assured that, although traditional manufacturing will not disappear, there will be changes in the way they produce.
He explained that augmented reality, additive manufacturing, synthetic biology, advanced robotics, cobots, metamaterials, artificial intelligence, machine learning, open-source, generative design and nanotechnology are some of those transformative technologies that will be trending in factories.
“These are some of those technologies that are changing a lot and that more and more year end users or customers are going to be requested in an incremental way to incorporate them into their processes,” he warned.
The manager said that 2019 was an excellent year for the industry in Latin America, when demand for machinery and equipment amounted to $5.7 billion, 53% of which corresponded to Mexico, 42% to Brazil, 3% to Argentina, 1% to Chile and 1% to Colombia, which was an excellent year for the industry.
Although demand is expected to decline this year, as sales of machinery and equipment could close at $2 billion in Mexico alone, Carlos Mortera commented that the Latin American capital goods consumer market is very important for AMT-associated manufacturers, so he was committed to a recovery in demand.