Electronics: Repair Service

Market Information

The Electronic industry provides 25% of total Mexican exports and 4.7% of that, is computers of some sort. Production of electronics rose to 53,900 million and will grow, according to experts, to 6.11% in the next four years. Mexico has 728 establishments, 67 of them are manufacturers or related to computer and their peripherals, 147 are manufacturers of telecommunications equipment, and similar quantities belong to establishments devoted to audio and video, components, measuring, etc.

Electronic repair services in Mexico are not fully developed despite the large number of professionals that graduate in engineering. However, there are a few companies providing high level service, the demand overpasses their capacities. A good range of opportunities are currently present based on the amount of electronic related businesses in the country.

OEMs, Tier 2 and Tier 1 companies have sophisticated maintenance teams and equipment. Their levels of expertise include maintaining high tech machinery or test and measurement equipment from renowned brands. Although, this is not a practice in 100% of the manufacturers for their suppliers may have offered service and repair contracts that may include parts replacement and annual or bi-annual site visits.

Domestic firms have taken advantage of these and are servicing the export industry successfully. Some U. S. high tech part suppliers have even decided to open a Mexican branch to supply the domestic demand; such is the case of Alternative Parts and Service from New York servicing Amada machinery and their controls. The electronic industry has settled at Jalisco but companies needing repair services are everywhere.

 Entry Strategy

Partnering with domestic repair businesses may be a good start for a US company wanting to explore the Mexican market. However, this may not be a good idea if they have the same expertise or compete for the same customers. The US firm will have to bring new abilities and added competitive advantages (perhaps in the form of newer high tech repair technologies) and shoot for the automotive, aerospace or aeronautics sectors which are in rapid development these days. Choosing the right market segment to approach will also define where in Mexico makes more sense to partnering with a Mexican firm.

The US exporter must define and share a market strategy to enter the market based on the above. Define your best partner profile, select the city or cities of your interest and schedule your trip to meet with them.

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