Mexico’s CI Market Can Benefit from More N. American Interplay
June 30, 2009
Invited to contribute our perspective, as a Mexico City-based
company, of what is happening in the electronics systems market is an
immense challenge, especially when all we read about is the imminent
crisis the global economy is facing. In fact, we are now feeling the
effects of this downturn, because many of our products are imported
overseas, and pricing is tied to a foreign currency.
cope with the international economic recession, the Mexican government
has adopted contra-cyclical measures meant to ensure the balance of
public finances and investment in infrastructure, which will total $600
billion pesos this year--funds that will be used for both public and
private investment, including extending credit to small and medium
firms through the Bank of Development.
|Manuel Suero is director of NTX, a custom integration firm based in Mexico City, Mexico. |
needs to be improved competitiveness in North America to not only speed
up economic recovery, but to ward off pressure to implement
protectionist policies in our commercial sphere. Threats come for all
corners and are difficult to identify, while opportunities are less
evident, especially those that will allow us to maintain growth in the
industry. Mexico and most of Latin America is still a prosperous market
for the electronic system market.
Mexico’s market share of
electronic systems has grown substantially. Last year Best Buy opened
its second-largest store worldwide in the suburbs of Mexico City, with
plans to expand its presence in Mexico with several more metro-area
stores, including Guadalajara, in 2009.
instability, constrained spending budgets, and the uncertainty about
what else is to come, imported goods and services are suffering. The
strength of the dollar, which has gone up approximately 40 percent in
value against the stable peso, has contributed significantly to this
Under this optic, Mexico and Latin America, in
general, offer a major opportunity for North American manufacturers who
can actively take advantage of the positive exchange rate, geographical
convenience, and reduced labor and transport costs. Just look at larger
companies like Sony, Sharp, Shure, Bose, LG, and Samsung, all of whom
are assembling their products near the Mexican border or in other
locations in the country where they have found competitive pricing and
have obtained business benefits from the local authorities.
Seeking Alternative Channels
all have read stories about Mexico’s violence and insecurity, which
lends credence to the potential grow market that security systems
present. Although they have been around for many years now, the pricing
of these systems has dramatically dropped and getting CCTV and remote
access to a security system is much more affordable these days.
area of opportunity is in the reduction of commuting costs. By using
last generation electronics systems such as video-conference systems,
for example, Mexico-based end users can reduce travel-related costs and
improve their carbon footprint at the same time.
The Money Gap
disparity of income in Mexico is so vast that our country now includes
some of the wealthiest people in North America. Even though the use of
custom integrated systems is new in Mexico, through education and
experience, architects and residential owners have started to
understand the value of adopting integrated systems into their lives.
Consumers embrace the experience that goes beyond the use of some
isolated electronic gadgets and demand more comfort and simplicity in
their day-to-day activities. Global influences and trends are rapidly
adopted in the Mexican market and also expand very quickly around the
We believe that even though there are multiple
challenges to be faced in the near future, there are as many
opportunities to be created by the electronics industry. Manufacturers
and distributors should take advantage of their CEDIA membership to get
into the Mexican and Latin American markets, by supporting education
and promotion of the technologies offered by local distributors and
Once again, forging strategic alliances will become
important, with each partner taking advantage of each other’s strength,
while minimizing liabilities. It is true that each country has a
different way of doing business, but our industry generally follows the
same trends. It is often only the timeline and scale that separates us.