Mexico, a country with a rich industrial heritage and strategic geographic location, has emerged as a significant player in the global appliances industry. Mexico exports appliances and other machines like refrigerators, washing machines, microwaves, small kitchen appliances, lighting, pumps, heating systems and more. Most of the products manufactured in the appliance industry in Mexico are sent to the U.S. market.
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Nearshoring in the Appliance Industry
In 2022, a new investment record was set in Mexico with more than $1 billion dollars in new or expanding manufacturing plants. Home appliance manufacturers benefit from the proximity to final markets. The size of some of the major household appliances simply demand efficient transportation. Combined with pandemic-driven supply chain shifts and a growing supply base of components and innovative electronics, Mexico is again seeing a boost of appliance manufacturing growth.
Demand for energy-efficient appliances is not new, but consumers are also more aware of the sustainability of their purchases. Many appliance manufacturers are looking to source, produce and distribute sustainably to curb carbon emissions. As this trend grows and more parts and components of appliances are sourced in the region, the industry will continue to strengthen in part through nearshoring.
Overview of the Appliance Industry in Mexico
The Mexican appliance industry has witnessed significant growth over the past few decades, driven by factors such as favorable trade agreements, skilled labor, and proximity to major markets like the U.S. and Canada. Mexico's manufacturing footprint is vast and varied, from white goods like refrigerators and washing machines to consumer electronics like televisions and air conditioners.
Major Appliance Manufacturers in Mexico
The home appliance industry in Mexico is broken down by types of appliances produced:
Several global giants have established manufacturing facilities in Mexico to capitalize on its advantages. Some of the major players include:
Electrolux
Known for its innovative home appliances, Electrolux has manufacturing units in Mexico that cater to both domestic and international markets. Electrolux has one main manufacturing facility complex in Ciudad Juarez, Mexico. Currently they employ over 3,000 employees, and the campus houses multiple plants that produce a different range of appliances:
- Refrigerator-Freezers : with their newest facility in 2015, they produce over 1 million refrigerators annually. They are mainly exported to the U.S. and Canada, but also to retailers in Latin America. The Juarez facility is state-of-the-art and designed to produce no harmful emissions to the air or water supply.
- Washers & Dryers : varying brands are produced at the Juarez campus, including Frigidaire, Kelvinator, Westinghouse and Electrolux. Each caters to a different market segment and region.
Whirlpool Corporation
With multiple facilities across Mexico, Whirlpool produces various appliances including refrigerators, ovens, and washing machines. Among the facilities include:
- Apodaca, Nuevo Leon : the largest and most important produces refrigerators, washing machines and components.
- Celaya, Guanajuato : produces stoves, compact refrigerators, and semi-automatic washing machines.
- Ramos Arizpe, Coahuila : produces duplex refrigerators.
Mabe
A Mexican multinational that has grown exponentially, Mabe manufactures a diverse range of appliances including stoves and refrigerators, for both local consumption and export. They have many facilities across Mexico. Arguably the most important is located in Celaya, Guanajuato, and produces:
- Refrigerators : various models for domestic and commercial use, from side-by-sides to top freezers.
- Washing Machines : produce top and front-loading washing machines under various brands.
- Cooktops and Ovens : manufactures cooktops and ovens for various brands.
Mabe's facility in Durango, Durango specializes in:
- Gas Cooking Appliances : produce stoves, range hoods, and other gas-powered cooking equipment.
- Small Appliances : including blenders, coffee makers, toasters, and other small appliances.
Mabe also has locations in Guadalajara, Jalisco; Monterrey, Nuevo Leon; and Puebla, Puebla. These facilities manufacture refrigerators and freezers, components for refrigerators, washing machines, stoves, water heaters, and gas boilers.
Samsung
Samsung has an extensive footprint for manufacturing a variety of products in Mexico. Their home appliance portfolio include refrigerators, washing machines, vacuum cleaners, air conditioners, and kitchen appliances. In 2022, Samsung Electronics Mexico expanded their home appliance manufacturing capabilities, with increased capacity in plants located in Tijuana and Queretaro.
BHS Bosch
The Bosch Siemens Home Appliances plant in Monterrey employs 1,500 people and its production capacity reaches 600,000 refrigerators annually.
Other notable players operating in the Mexican home appliance industry include LG Electronics, Carrier, Daikin, Hamilton Beach Brands, and Panasonic, among others.
In 2022, a new investment record was set in Mexico with more than $1 billion dollars in new or expanding manufacturing plants. Among them were Samsung in Queretaro and Tijuana, Bosch and Hisense in Nuevo Leon, Whirlpool in Coahuila, Nuevo Leon & Guanajuato (CLELAC).
Mexico's Role in the Global Market
At the global level, Mexico produces about 2.5% of home appliances (CLELAC). The global home appliances industry is valued at about $33 billion dollars. The supply chain in Mexico is intertwined with automotive and electronic manufacturing that utilize the same kinds of smart chips.
As home appliances become more intelligent, there are some global trends that are showing up through the home appliances produced in Mexico, including:
- Decrease in the wear and tear of clothes during wash cycles, as well as new solutions to combat bacteria and microorganisms
- Creation of segmented temperature regulation that works to prevent food spoilage of different products
- Minimization of water consumption and energy usage
- Smart home connectivity and even AI capabilities
- Minimalistic and modern designs, buying online, and even some consumer customization
Mexico's Home Appliances Exports
Mexico's growing appliance manufacturers must rely on local providers. The USMCA (United States-Mexico-Canada Agreement) states that 60% of a product has to be produced with components originating from Canada, the United States or Mexico. This paves the way for both domestic suppliers and small companies to grow, and international companies to establish themselves in the local supply chain as well.
Mexico's appliance exports have been a cornerstone of its economic growth. The country benefits from trade agreements, facilitating seamless trade with its northern neighbors. In 2023, the country exported about $15 billion dollars in home appliances (Mordor Intelligence).
Home Appliance Manufacturing Hubs
In Mexico there are about 3,500 companies that pertain to the home appliance industry. Today, the industry is increasingly more aligned with electronic components, so certainly the number of suppliers to the industry will increase. The strategic location of appliance and other industry manufacturing facilities across Mexico provides insights into the industry's spatial dynamics:
Northern Mexico
The northern region of Mexico has recently benefited from a nearshoring boom, and longer been a popular destination to set up manufacturing-for-export facilities called maquilas (or IMMEX).
- Tamaulipas
- Nuevo Leon
- Coahuila
- Chihuahua
- Baja California Norte
Download the free appliances e-book for additional detail by Mexican state.
Central Mexico
Central Mexico, also an important manufacturing hub, is home to important operations for the country's home appliance sector.
Queretaro- San Luis Potosi
- Guanajuato
- Jalisco
Download the free appliances e-book for additional detail by Mexican state.
Mexico City Metro Area
Both Mexico City and Mexico State are important producers of home appliances. The metro area is home to commercial operations of many companies with domestic sales, as well as home appliance companies of Mexican capital.
Mexico City- Mexico State
Mexico's Consumer Market
The domestic consumer market for household appliances in Mexico is growing at a rapid rate. Over 80% of Mexico's population lives in urban environments (CLELAC), and nearly 50,000 appliances are expected to be purchased annually in Mexico by 2026 (Euromonitor) which represents a 20% increase over 2016. Between 2017 and 2021, online home appliance purchases increased by 16% and shows no signs of changing in trend.
By 2025 the e-commerce market share of home appliance purchases in Mexico will reach 43%, up from 23% in 2021 (Statista).
Mexico's private consumption indicator (IMCPMI) measure the evolution of expenses made by the Mexican household in goods and services in the country. Despite inflation in 2022, consumption grew 6.5% with imported goods experiencing a 13% growth from the previous year (trade.gov).
Resources
Home appliance manufacturing is a strategic sector in Mexico. As such, there are local organisms that support the industry in different ways.
- CLELAC - Cluster Electrodomésticos de Nuevo Leon is an organization aiming to increase the competitiveness of the appliance industry through synergy with companies, government and education institutions as well as contribute to sustainable development of the region.
- ANFAD - Asociación Nacional de Fabricantes de Aparatos Domésticos is an organization whose objective is to represent the national home appliance industry in Mexico. They are structured around 7 sectors, and their members represent about 80% of the home appliance producers and distributors in Mexico.
Conclusion
The appliance industry in Mexico stands as a testament to the country's manufacturing prowess and strategic advantages. With a strong presence of global manufacturers, diverse product offerings, and a skilled workforce, Mexico is well-positioned to remain a key player in the worldwide appliance landscape. Mexico's continued focus on innovation, quality and adaptability as the industry evolves will undoubtedly drive its future success.
If you are thinking about manufacturing appliances in Mexico, check out The Mexico Journey, our approach for launching operations in Mexico for foreign companies.
