The importance of strengthening automotive industr...

The importance of strengthening automotive industry suppliers

The automotive industry is and will be for long time the base of the economy of Aguascalientes; recent indicators show great advance since 1999, the year our state´s industrial vocation was consolidated.

Data from the department for Ecoomic Development (SEDEC) show that Foreign Direct investment (FDI) has accounted for 6.1 million dollars since that year. In 2017, the automotive sector contributed 18.7 percent to the state’s GDP. In 2018, the state exported 7,927 million dollars

Nowadays, there are 155 companies in this industry, three of which are Original Equipment Manufacturers (OEMs), 35 are tier 1 suppliers, and 117 fall in the tier 2 category. They gene- rate a total of 40 thousand jobs (1 of every 3 in OEMs).

In view of a complex economic outlook, the national automotive industry aims at nding new opportunities to develop hybrid, electric, and autonomous cars, three areas for which
an important boom is expected over the next years. This will bene t the markets of electronic components, information technologies, and advanced materials.

“One of the priorities has been to strengthen the collaboration that exists in companies so that they can join the value chain of big car makers.”

SEDEC considers that the future of this industry needs to be built upon two stages, and the state of Aguascalientes will be playing an important role in this transformation:

1. Rede nition of vocation
2. Strengthening of tier suppliers’ value chain

Under these premises, SEDEC has engaged in diagnosing the industry, analyzing global tenden- cies, and identifying areas for improvement through a series of coordinated activities such as discussion panels where academia, businessowners, associa- tions and government join efforts to create action plans to meet the goals established in the 2045 State Development Plan.

One of the priorities has been aligning all the efforts to save resources and energy. It is to say, strengthening the collaboration that exists in com- panies with limited capacities so that they can join the value chain of big car makers.

The challenge is working together so that these small companies can participate in the programs suggested by SEDEC to increase their capacity. This way they will be able to join the value chains.

Thanks to SEDEC’s administration, several actions have been taken to respond to the challenge, like programs to automate Small and Medium-sized Enterprises (SMEs), programs to strengthen the su- pply chain through research centers, agreements to execute a dual education system with state universi- ties, the German Agency for International Coopera- tion, and the Network of Bajío Companies to foster mobility and ow of talent in the region.

By executing plans and strategies set in discussion panels, it is expected that by 2045 more patents will be granted, that local talent will be internationally required, that clusters will become better coordi- nated, that the supply chain will grow and become stronger, that design and innovation centers will

be opened, that the dual education system will be promoted in higher education institutions, and that sustainability will receive a major boost.