Mexico produces 24% of tooling and strengthens integration with different sectors

Monterrey, NL. The tooling industry has made progress in import substitution. However, molds and dies are still imported from countries such as China, the United States, Canada, Germany, and Japan. The market size is $5 billion, and of that amount, $1.2 billion (24%) is already produced in Mexico, Alfonso Peña, general director of the Nuevo León Tooling Cluster, told El Economista.

"Approximately $5 billion is needed to produce annually. Of this figure, $1.2 billion in import substitution is already being implemented nationwide. The remaining $3.8 billion corresponds to imports of plastic molds, stamping dies, casting molds, and accessories," the executive explained.

In this context, he explained that because leading companies in various sectors, including the automotive and household appliance sectors, are seeking to comply with the USMCA rules of origin , it has been observed that in business meetings such as the Automotive Supplier and, more recently, ENCLELAC Connectivity, the number of large companies interested in complying with the integration has increased, especially those impacted by tariffs.

He emphasized that these business forums feature suppliers who can complement the supply chain of large companies. "Now more than ever, I would encourage suppliers to participate in these events, which bring together executives from the purchasing and supplier development departments to seek national integration."

How is supplier development carried out?

For the Tooling Cluster, the triple helix (groups, government, and academia) allows for strengthening the capacities of local industry . On the one hand, they connect small and medium-sized supplier companies with various support and financing programs offered by the state government through the Ministry of Economy, such as Impulso Nuevo León, Competitive SMEs, and/or Innovation.

"We seek to identify the next step in their development. If, for example, a company makes spare parts for dies, the next step is to see how they can produce the complete die. In turn, we train those who have already achieved this so they can manufacture more complex or larger dies," he explained.

It's worth mentioning that tooling is essential in manufacturing because it expands production capacity, enables high-precision parts manufacturing, automates repetitive tasks, speeds up processes, and reduces costs by minimizing failures.

"The Cluster has a direct connection with the Driven Center, an automotive engineering center that supports companies in the design and engineering department, and at the technical level, we have the Álvaro Obregón Industrial and Preparatory School of the UANL."

"We are convinced that education is what will contribute to the region's long-term economic development," he emphasized.

Strengthening production chains

The state Ministry of Economy has promoted the Productive Chain Strengthening Program to develop projects that contribute to increasing the integration of MSMEs into productive chains through import substitution.

Alfonso Peña stated that the cluster has participated in this program in its three editions. "In 2022, we will support it with 20 million pesos, the following year with 20 million pesos, and in 2024 with 30 million pesos."

For example, in the 2024 call for proposals, the Cluster was the winner with several projects , including: Heavy Duty EV Manufacturing of eight tool sets; strengthening the production chain for mechanical components with complex geometries and high-performance machining; and a Comprehensive Project for the Manufacturing of Galvanized Steel Industrial Racks with a High Structural Level and High Quality Standard.