In the game
One theme among industrial leaders over the past year has been sustainability. Consumers are beginning to demand more transparency from supply chains, and companies are following suit by incorporating circular economy concepts within their processes and pushing for more ecologically friendly products.
Mexico exports almost 89% of what it produces to North and South America, Asia, and Europe, and trends in these countries will greatly impact production in the country, according to the Mexican Association for the Automotive Industry (AMIA). “I expect the US to promote more clean technologies, an issue that is already well developed in the auto industry,” said José Zozaya, President of AMIA. “We produce hybrid and electric cars in Mexico, and there could be growth in that area. We also expect the US to promote more clean fuels,” he added.
In this matter, The Business Year also spoke to the number-one brand in sales for EV in Mexico and how it plans to continue incorporating new vehicles into its portfolio through its strategic partnership with JAC, a Chinese company. “In 2019, we decided to bring a complete line of electric vehicles to JAC with a whole digital structure, and we launched five vehicle models in November 2019,” said Elias Massri, Director General at Giant Motors Latinoamérica. “JAC is a strategic partner of a Chinese company and Volkswagen in electric vehicles, so it already had experience in this sector and in the sale of electric vehicles in China, which forced us to look for a digital platform more robust than the competition.”
There are additional areas of opportunities in the country to promote the better handling of waste in the country in a way that helps companies save money. “We work on implementing turnkey solutions for multinationals in Mexico and helping them on zero waste to landfill programs,” shared Rafael Herrera Acevedo, co-founder and CEO of Innovative Group Reciclaje, in an interview.
The Mexican Foodbanking Network is also working closely with companies to reduce food waste, as the pandemic has seen more people coming to food banks in the country. “Since the pandemic, we have started working with companies in the energy sector, such as IEnova, Engie, and Shell,” explained María Teresa Garcia Plata, Director General of the Mexican Foodbanking Network (BAMX). “We have been innovating to create these new relationships where we work with companies on special projects to benefit particular communities. We work with almost 7,000 communities, so BAMX is an extremely experienced NGO for these companies to work with.”
This chapter highlights the opportunity to create more sustainable processes in industrial supply chains, as well as the countercyclical levels of growth the chemical industry has been experiencing around the world. “Globally, chemical data for 1Q2021 is the highest in probably 10 years, driven by improved expectations and demand,” said Martín Toscano, President & General Manager of Evonik, noting “in Mexico, we are showing consistently strong results in 2020 versus previous years volume-wise and achieving higher turnover due to organic growth, execution of ongoing projects with customers locally, and the further integration of acquisitions made by the group recently.”