The apparel industry in Mexico represents one of the largest manufacturing sectors in the Mexican economy. Employing nearly 460,000 workers, Mexican apparel industry employment has more than doubled since 1993.
Garment manufacturing has been one of Mexico's traditional
activities. The quality of production has improved notably and
today Mexico enjoys a worldwide reputation for the quality of its
textile products and punctuality in filling commercial orders.
The most lucrative foreign markets for Mexico besides the U.S.
and Canada are: Great Britain, Japan, Spain, Chile, and Brazil.
NAFTA's Positive Effect
Growth of the textile sector is primarily attributable to NAFTA,
as more and more garments are assembled in Mexico for the U.S.
market. Also contributing to import growth is additional foreign
investment prompted by confidence in Mexican trade policy, the
general growth of the Mexican economy.
Imports of machinery and equipment for the textile and apparel
industry have increased dramatically since NAFTA went into
effect--65% per month from an average of $49 million USD in 1994
to $81 million USD in 1998 during the period of January to July.
The vast majority are sewing machines which accounted for 24% of
all textile machinery imports in 1998.
Continued investment in equipment and improved production
techniques have led to strong apparel exports. The "maquila" of apparel increased $1.1 billion USD from 1995 to
1996, resulting in 40% growth in one year. Between January and
July 1998, exports increased by 59% compared to the same period
in 1997.
Opportunities In Mexican Import Business
The Mexican market for imported textile fabrics has grown
considerably. The import of textiles for domestic consumption
was USD $429,851 million in 1998 with an estimated increase to
USD $468,538 million in 1999. Total imports (including maquila
and temporary imports) were USD 1.9 billion in 1998 and are
expected to increase in 1999 to USD $ 2.4 billion.
Mexico imports textile fabrics from a number of countries besides
the U.S., primarily from Taiwan, Korea, and China. The principal
importers of textile fabrics are garment manufacturers and fabric
stores. They use local press and the local yellow pages to
advertise their products; wholesalers distribute their products
to small fabric stores.
End users of textile products in Mexico are garment
manufacturers, seamstresses, and tailors. There are 12,859
garment companies registered with the CANAINVE (Mexico's National
Apparel Industry Chamber) as of September 1999, and some 87,000
independent seamstresses and tailors. Large garment
manufacturers, maquiladoras, and seamstresses /tailors primarily
use imported fabrics.
Seamstress and tailor shops exist everywhere in Mexico. Due to
their large number, these shops consume considerable quantities
of fabrics. They buy most of their imported fabrics from
distributors in the principal cities of Mexico: Mexico City,
Guadalajara, and Monterrey.
China: The Lurking Giant
China is lurking once again as a major competitor poised to dominate the U.S. market. It is possible that as China and other Far Eastern suppliers make inroads into the U.S. market, many U.S. firms, which have already invested heavily in Mexico, will be forced, for competitive reasons, to move their investments out of Mexico in favor of other more competitive regional producers.
Do you need a licensed Mexican import export business partner who understands the textile industry?
JACI can help you!
Contact us for more information by emailing sales@jaci-sa.com for assistance.
