Manufacture

Manufacturing remains crucial, offering new opportunities and challenges.

Industries

Competitiveness in Volatile Times

The manufacturing sector in Latin America and the Caribbean is facing a recent period of volatility, characterized by high inflation, rising interest rates, and armed and geopolitical conflicts that have disrupted its supply chains.

However, despite these challenges, the IDB points out that this sector is the second largest contributor to the regional Gross Domestic Product (GDP), representing 15.7%, second only to the services sector, which contributes 57.5%. Furthermore, it accounts for 13% of the workforce and 45% of total exports, with Mexico and Brazil as the main contributors.

Over the past decade, the manufacturing sector in Latin America has seen a slight increase in its contribution to GDP, driven by Mexico thanks to its integration with the United States. However, in Brazil and most of the region, this sector has declined, influenced by the commodities boom and Asian competition.

Mexico excels in the manufacture of vehicles, machinery and electronics, while Brazil stands out in electronic components, vehicle manufacturing, machinery and finished products.

In this context, the challenge for companies is to improve competitiveness in order to maintain and increase market share.

Growth and Demand towards 2030

60 %

Manufacturers use data to understand and optimize projects.

1.09 %

It is the expected compound annual growth rate in manufacturing market output between 2024-2029.

754.1 M

This is the size of the global smart manufacturing market for 2030.

10 Strategic Challenges 2026

1

The Hyper

The trend toward “hyper” in manufacturing, including hyperautomation, hyperconnectivity, and hyperpersonalization, offers a crucial opportunity for industry leaders. Driven by technologies such as artificial intelligence (AI), these practices enable more transparent and efficient operations, improve workflows, automate processes, and foster innovation. In addition, the integration of devices, systems, and people promotes greater collaboration and synchronization across the value chain.

2

Servitization

There is a growing trend toward selling products under the service model. A clear example is software, which is no longer acquired through a one-time purchase but is paid for through subscriptions. This same dynamic is being applied to physical products. For example, some car manufacturers are beginning to offer additional features, such as seat heating, as a subscription service.

3

Sustainability

Manufacturing accounts for 17% of Latin America's GDP and 15.5% of global GDP, with a significant environmental impact, such as 26% of greenhouse gas emissions in Mexico. A shift towards sustainable engineering and renewable energy is expected, especially in markets with strict regulations. In Latin America, companies are adopting sustainable practices to reduce their environmental impact and remain competitive internationally.

4

Holistic approach to Smart factories

Manufacturers are investing in key technologies such as cloud connectivity, edge computing, and 5G to lay the foundation for smart factories. They are also adopting disruptive technologies such as augmented reality, artificial intelligence, the Internet of Things, additive manufacturing, blockchain, and advanced analytics once the digital core is established. This comprehensive approach improves efficiency, productivity, and agility across the entire value chain.

5

Robotics

Advances in sensors and software are facilitating the development of more versatile and collaborative industrial robots. These robots are expected to play a crucial role in the automation of manufacturing processes. ABI Research projects that by 2030 there will be more than 4 million collaborative robots in factories, contributing significantly to the global economy. These technological advances will increase efficiency and productivity in industrial operations, fundamentally transforming manufacturing and the supply chain.

6

Cobots and AI in Flexible Manufacturing

The vision of ‘customized production’ is becoming a reality with Industry 4.0. The production lines of the future will be flexible, composed of reconfigurable mechatronic modules, with collaborative robots (cobots) and AI that optimize machines for individualized manufacturing. This will enable production without lengthy configuration changes, increasing efficiency and customization.

7

Edge Computing and Predictive Maintenance

The increase in computing power of industrial controllers and edge computing devices, together with the use of cloud systems, is revolutionizing the functionality of programs in production systems. AI algorithms will dynamically optimize the performance of production lines, minimizing energy and resource consumption. Predictive maintenance will evolve, considering data from multiple factories and equipment, improving operational efficiency and reducing downtime.

8

Digitization of the supply chain

To address challenges in the supply chain, manufacturers are adopting digital solutions that improve visibility, strengthen resilience, and drive innovation. Technologies such as blockchain and smart contracts automate contract execution, ensuring that transactions are secure and verifiable. This allows for automatic assessment of transaction status and actions such as shipment and payment verification.

9

After-sales services as a potential differentiator

In recent years, manufacturers have accelerated the use of advanced technologies, such as IoT sensors, onboard computers, machine learning, RFID, augmented reality, and energy-efficient components, to improve their products. These innovations have highlighted the importance of comprehensive after-sales support, offering a significant opportunity to generate revenue, demonstrate commitment to product reliability, and increase customer satisfaction.

10

3D printing

3D printing technology has advanced significantly in recent years and has become much more accurate, flexible, and cost-effective. This not only enables rapid prototyping and greater product customization, but also has the potential to make maintenance and repairs much faster and easier. Technicians can print a replacement part in a fraction of the time it would take to obtain parts from a warehouse, reducing downtime to a minimum.

Our experts

José Luis Gorriti

MBA from ESAN, postgraduate degree in quality management from Osaka, Japan. Consultant specializing in strategic planning and balanced scorecards for business groups in Mexico, Peru, Brazil, Argentina, and Colombia. Former Executive and Board Member at Bayer Industrial Peru.

Jaime Alonso Gómez

Ph.D. in Administrative Sciences and Applied Economics from The Wharton School, University of Pennsylvania, USA. Consultant in Asia, the Americas, and Europe. Former Distinguished Visiting Professor at the following business schools: MIT, Harvard, California, and Austin, Texas.

Luis Cantú González

Bachelor's degree in Business Administration from CEU, Monterrey. Former Executive Director, Director of Administration and Finance, and Director of Control and Information Technologies at Grupo Protexa.

Eduardo Flores Montes

Industrial Engineer with a postgraduate degree in Operations Management from the University of Cologne, Germany. Former General Manager of Sudamericana de Fibras in Brazil; General Manager of Bayer Industrial in Peru; General Manager of Metalúrgica Peruana.

Victor Carrera Torres

M.Sc. in International Business from Georgia State University. M.Sc. in Industrial Engineering from the Georgia Institute of Technology. Former executive at Coca-Cola, USA.

Héctor Díaz Saénz

Specialist in Leadership and Organizational Culture, accredited by Human Synergistics International. Performance Coach for Entrepreneurs. Ph.D. in Organizational Communication (with a specialization in Leadership and Organizational Culture), from the University of Texas at Austin.

Boris Dimitrijevic

Marketing consultant specializing in various business groups in Latin America. Former Marketing Manager at Coca-Cola Peru. Ph.D. in International Business and Marketing from the Polytechnic University of Catalonia.

Roberto Martínez Elizondo

Former executive in Organizational Development and Human Resources at companies such as Grupo Protexa, Aceromex, and Grupo Multimedios, among others. Holds a Bachelor's degree in Psychology, a Master's degree in Organizational Development, and a specialization in Family Business Management from the University of Monterrey (UDEM).

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