Home appliance industry will maintain growth in 2021

Baldwin Britton, VP of the Board of Directors of the Nuevo Leon Home Appliances Cluster and CEO of Plastiexports, said that the second half of last year the home appliance industry, even with the pandemic, had record months of growth.

He said that the industry expects a growth of 15% during 2021, compared to 2020, data that have been reflected in the first months of this year.

"Starting the second half of 2020, we have seen sustained growth of approximately 25% in certain home appliance manufacturers. So, our estimate, based on what we have heard from our OEMs, is that we will have growth of 15%, which in real terms will be 5% above the data we had before the pandemic”, said Britton.

Britton added that since last year, very important investments have been made in the industry by companies such as Whirlpool, Hisense and Dometic, which have been installed in Nuevo León, generating new jobs and new opportunities for suppliers.

Long term suppliers

Enrique Buchanan, leader of the OEM supplies committee of the Nuevo Leon Home Appliances Cluster and VP Global Supply Chain of Criotec, said that Mexico has challenges and opportunities to be able to substitute imports, create a dynamic economy and be able to retain suppliers in the short, medium and long term.

Enrique Buchanan, leader of the OEM supplies committee of the Nuevo Leon Home Appliances Cluster and VP Global Supply Chain of Criotec, said that Mexico has challenges and opportunities to be able to substitute imports, create a dynamic economy and be able to retain suppliers in the short, medium and long term.

In this regard, Daniel Córdova, president of the Nuevo Leon Home Appliances Cluster and director of Trane Technologies, said that the mexican home appliance industry is in an unbeatable position.

“As a result of the pandemic, the way in which businesses are being oriented is changing and many companies that 20 years ago went to Asia for a lower cost, are beginning to analyze returning here to the region, in Canada, Mexico or United States”, said Córdova.

Córdova explained that historically the home appliance industry brought materials and components from other countries and regions because it was profitable, but this aspect is beginning to be questioned today.

“So that gives us the opportunity to be able to compete. We see two possible options: the first is that suppliers come from Asia or other regions, settle here and they are our source of supply. The second option is that we develop our suppliers so that we can grow here in the region”, said Córdova.

The arrival of new investments

According to Baldwin Britton Nearshoring and Reshoring have generated great opportunities for the mexican home appliance industry.

“Many home appliances were being manufactured in Asia, but now the opportunity is opening for mexican companies to increase their production lines to export to the main market: United States”, said Britton.

Américo García, undersecretary of Industry, Commerce and Services of the Ministry of Economy and Labor of Nuevo León, said that there is considerable interest from companies from other countries to establish themselves in the region.

“At least in Nuevo León last year, even with the pandemic, we received more than 3,300 million dollars of foreign investment, of which 9% corresponds to the investment of the home appliance industry. This year foreign investment has continued to grow. Some of the new companies that have arrived, such as Hisense, are companies in this sector, which will be requiring local suppliers”, said García.

García added that during the first two months of 2021, 24 foreign investment projects were announced, of which two are from the home appliance industry (Hisense and Whirlpool). Currently, CLELAC and SEDET are working together to promote the arrival of 17 companies in the sector to Nuevo León.