Household Appliances in Mexico

Summary

History

Location

GDP contribution

Mexican business and foreign business representation

Commercial partners

Work force

Competitive strategies

Inputs and Outputs

Conclusion

History

Mabe was the pioneer in the Mexican household appliance industry, it was incorporated in 1946 in Mexico City, being initially dedicated to manufacture kitchen furniture. In the 1950s, Mabe began manufacturing appliances such as gas stoves and refrigerators. Rapid growth, because of the lack of serious competition allowed Mabe to become the leading exporter of home appliances in Mexico as early as 1960.

In 1986, Mabe entered into an important strategic alliance with GE to produce appliances for the US market. While GE hoped to gain access to Mexico’s low cost work force, Mabe was given access to the world’s largest consumer market through GE’s American distribution network. By the mid '90s, more than two-thirds of all gas stoves and refrigerators imported into the United States were designed and manufactured by Mabe in Mexico, while 95% of those sold under the General Electric brand were designed in Mabe's San Luis Potosi plant, the biggest plant dedicated in producing kitchens in the world.

After the NAFTA was signed by the United States and Mexico, various international firms established production facilities in Mexico considering:

• The geographical location of our country to the United States

• The manufacturing costs, which are nearly 25% lower than in the United States

• And the various gubernamental programs, such as the Maquila program, that fomented the attraction and capitation of FDI

Location

GDP contribution

The industry has had a steady growth in the past years, having a production of approximately 7.863 billion dollars in the last year, which is nearly a 0.7% of the national GDP.

In addition it has been estimated that between the years of 2011 and 2020, a 7.3% steady growth will be achieved

Mexican or...