FITMA 2021 in Mexico City, Mexico is less than a week away and the latest manufacturing data from the National Institute of Statistics, Geography and Informatics (INEGI) suggests that it should be a busy event. According to the data release which includes data through March 2021, the Mexican manufacturing market made an impressive rebound from its 2020 nadir. The number of manufacturing employees as of March 2021 was the second-highest on record at 2.743M; just shy of the 2.746M recorded in mid-2019. Comparing March of 2021 to the same month a year ago, employment counts are up 2.7%, remunerations are up 15%, and personnel payments have increased 6.4%. 

Mexico’s manufacturing labor force as of March 2021, was only slightly smaller than the pre-pandemic peak reached in mid-2019.

Total manufacturing income ending March was up 5.9% led by national income which reported 6.2% growth while foreign income growth was reported at 5.7%[1]. Foreign income represented nearly 64% of total Mexican manufacturing income in March of 2021; and was well above the 4-year average of 61.5%. In current pesos, March’s foreign income of 335.6B pesos ($16.3B dollars), marked the highest level of foreign income since at least 2017 and is 160% higher than April 2020’s pandemic low.

Foreign and national income levels have strongly rebounded during the last 12-months. Foreign income as of March 2021 was at its highest since at least 2017.

Trade flow data provided by the U.S. Census Bureau confirms the robust numbers reported by the INEGI. Total U.S. imports of Mexican goods as of April 2021 reach USD $32.44B; a figure that is nearly USD $2B above pre-pandemic levels. Similarly, rail traffic at nearly 37,700 carloads is 12.8% above year-ago levels and 44% above pandemic lows. Overall, the snapback in Mexico’s manufacturing sector serves as a testament to the quality of its workforce, diversity of the end-markets served by its manufacturing sector and its international appeal as a trading partner.