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Best location for a foundry trade fair in 2024

What makes Mexico so attractive to potential visitors right now

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go Mexico

By launching GIFA Mexico, Messe Düsseldorf is taking THE BRIGHT WORLD OF METALS to Latin America. The first edition of GIFA Mexico will be staged at Centro Citibanamex in Mexico City from 16 to 18 October 2024, as a pavilion within FUNDIEXPO. Leading players from the foundry technology world will be showing latest innovations in NF-metals, iron and steel casting – along the entire value chains of foundries, and the downstream processing and metal-working sectors.

the place to be

Mexico’s up-and-coming economy makes the country a key booming region between the USA and South America and an important business hub for Latin America. As a new international spin-off of GIFA - the world’s leading foundry technology trade fair -, GIFA Mexico will provide growth-oriented businesses a stepping stone into Latin America’s emerging markets. Especially, the automotive industry in Mexico is an international success story. The country is the world’s fourth largest supplier to the automotive industry and a successful location for the international foundry industry. Mexico is home to the most innovative foundry and casting businesses, not only in the automotive sector.

best partners

FUNDIEXPO has a long tradition as Mexico’s leading trade fair and forum for the foundry industry. It is organized by the Mexican Foundry Society Sociedad Mexicana de Fundidores, A.C., with whom Messe Düsseldorf has now partnered. In 2022, 350 exhibitors from 15 countries attracted about 6,400 visitors to

Mexico Facts:

  • Population (2023): 129 million
  • GDP (2023): 1,811 billion USD
  • GDP per capita (2023): 13,803 USD

Economic Outlook:

Despite record investments, Mexico’s economy is growing at a slower pace. One key driver is the nearshoring trend, which has benefited Mexico due to its proximity to the U.S. market and the USMCA trade agreement. Many international companies are expanding or relocating to Mexico. Foreign direct investment (FDI) reached a record $36 billion in 2023. German companies, in particular, are investing in the automotive industry. Mexico became the U.S.'s top trading partner in 2023, surpassing Canada and China.

However, political uncertainty surrounding Claudia Sheinbaum, who will assume the Mexican presidency in October 2024, could cause some investors to hesitate. The IMF projects that GDP growth will slow to 1.6% in 2025.

Growth Sectors:

  • Automotive Industry:
    The Mexican automotive industry is expanding, with investments in electric mobility expected to boost production in the medium term. Local sales and production of cars in Mexico, driven by double-digit growth rates in 2023, have returned to pre-pandemic levels, a trend expected to continue in 2024. Original Equipment Manufacturers (OEMs) and suppliers are increasing production capacity due to nearshoring and investing in electric vehicle manufacturing. Mexico could produce over 4 million vehicles by 2024.

Volkswagen, after Nissan and General Motors, is the third most popular car brand in Mexico. However, Chinese manufacturers have rapidly increased their market share to 10%, a trend that is expected to rise.


Trade and Production Conditions:

  • USMCA Agreement:
    The USMCA trade agreement, effective since July 2020, has boosted foreign investment in the automotive sector. The agreement requires a vehicle’s local content value to increase from 62.5% to 75% (as of 2023) for it to be traded tariff-free within the region. This has led automakers to rely more on locally produced parts. Some OEMs, however, opt out of these tariff benefits to avoid the stringent local content requirements, citing Mexico’s lower labor costs and well-qualified workforce as advantages.

Industry Structure:

A significant portion of machinery used in Mexico is imported, with Germany being the third-largest supplier. Many European companies have local production or sales subsidiaries in Mexico, though few Mexican companies are among the top machinery manufacturers.

Political Climate:

Mexico's political landscape could pose some risks. In June 2024, Claudia Sheinbaum was elected Mexico’s first female president. Although pragmatic and less populist than her predecessor, López Obrador, Sheinbaum is expected to continue his social movement while boosting renewable energy. Her party, Morena, won 59% of the vote, allowing it to control 23 of 32 Mexican states and hold a two-thirds majority in the Mexican Congress, raising concerns about the potential for constitutional changes that could weaken the country’s system of checks and balances.

Economic Forecast:

Despite political uncertainties and upcoming U.S. elections, Mexico is expected to benefit from nearshoring, with GDP growth forecasted at an average of 2.2% per year from 2024 to 2028. However, challenges like water shortages and security issues could hamper growth, as could a potential revision of the USMCA agreement in 2026.

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