Mexico and Brazil offer significant opportunities in Latin America in the Advanced Engineering sector.
Both countries have attracted significant Foreign Direct Investment from leading multinational companies and large manufacturing plants have been established with extensive supply chains. Brazilian and Mexican engineering companies also operate as part of these supply chains. With the UK industry’s reputation for innovation, quality and reliability, there are opportunities here for UK companies to become instrumental cogs in these supply chains too by providing UK technology and expertise.
Mexico has a strong network of free trade agreements with a variety of countries, making Mexico an ideal export base for UK advanced engineering companies.
Over 80% of machine tools and manufacturing equipment is imported from other markets and Industry 4, the digitisation of manufacturing, is growing in demand across sectors such as digitalisation of industrial processes, robotics, smart technologies, and clean tech.
The US-Mexico-Canada Agreement (USMCA) will also increase investment in North America’s automotive sector and the increasing shift to low carbon vehicles provides opportunities for UK companies to export machinery designed to produce zero emission vehicles.
Aerospace, food and drink, electronics, and domestic appliance manufacturing also have a strong presence in Mexico, and it is increasingly moving into new industries such as the manufacturing of electric vehicles.
Brazil has a large industrial base and a population of over 220 million, meaning that opportunities are extensive for UK advanced engineering companies looking to export to an area with high demand for new products and services.
Goldman Sachs has stated that Brazil will remain one of the world’s fastest growing economies up to 2050 and around 400 of the world’s largest companies operate there, including BP, Shell, JCB and Rolls Royce.
Brazil also has a growing medical device market and the largest in Latin America, with around 6500 hospitals and nearly 20,000 diagnostic laboratories, presenting opportunities for UK advanced engineering companies with expertise in these areas.
There is also opportunity in the renewable energy sector. Water is the country’s top source of energy, followed by energy produced in biomass plants which make energy through organic fuels like sugarcane, rice husk, bagasse, and wood waste.
How we can help your business make the most of opportunities
The Department for International Trade is hosting an event on Wednesday 22 September 2021 at 2:30 for South West based Advanced Engineering companies which will highlight the substantial opportunities for UK businesses in Mexico & Brazil.