Engineering Plastics Market in Mexico Grows with Increasing Investments in Key Automotive End-use Sector, Finds Frost & Sullivan
Production and sales of engineering plastics will continue to grow as new applications emerge
SAO PAULO, July 1, 2013 /PRNewswire/ -- The expansion of various industries owing to government incentives and favorable trade agreements, along with rising investments in the automotive sector have made Mexico an attractive market for engineering plastics. To be successful, engineering plastics manufacturers will need to overcome challenges such as low product differentiation and reduced domestic demand. While growth is certain, especially considering that the market recovered quickly from the global economic slowdown, the question is how fast it will grow over the next five years.
New analysis from Frost & Sullivan (http://www.chemicals.frost.com), Analysis of the Engineering Plastics Market in Mexico, finds that the market earned revenues of $1.24 billion in 2012 and estimates this to reach $1.67 billion in 2017. The research also covers topics such as industry challenges, market drivers, restraints, and emerging trends. Additionally, revenue forecasts are discussed for each resin: polyamide, acrylonitrile butadiene styrene, polycarbonate, polyoxymethylate and polybutylene terephthalate.
Engineering plastics are becoming popular as they are cost-effective, versatile and light, and are a suitable replacement for traditional materials such as metal, glass and wood. Engineering plastics also decrease cycle times, resulting in reduced costs as well as better design flexibility and aesthetics.
"The low cost of labor in Mexico, compared to traditional manufacturing countries like China, and the globally competitive cost structure of the country's automotive industry have both encouraged market expansion," said Frost & Sullivan Chemicals, Materials & Food Research Analyst Mariana Guercia. "Incentives and tax exemptions to promote the set up of local plants further encourage industrial development, in turn boosting the potential of the engineering plastics market. In fact, the installation of local facilities by six automakers, as well as according to the National Association of Plastics Manufacturers (ANIPAC) the establishment of 800 auto parts manufacturers from other countries in the next five years, is already on the cards."
However, transformed products from these plants are exported since domestic demand is low. At the same time, most of the resins for production are imported. This high dependence on imports and the limited local demand makes Mexico vulnerable to global downturns. Domestic demand of transformed products with a higher value needs to be developed to stimulate market growth.
Another market challenge is that products from various engineering plastics manufacturers all have similar quality, creating pricing pressures and curbing market revenues. Producers need to discover new applications, increase product lifecycles, change raw materials from oil to a renewable source, and improve the cost-benefit ratio to enhance product differentiation and appeal to potential end users.
"Engineering plastic suppliers also need to provide value-added solutions to broaden their consumer base," suggested Guercia. "Offering technical support from the development to the post-sales phase will ensure customer loyalty."
Finally, the fragmented nature of the market in Mexico makes it necessary for vendors to build an extensive distribution network and ensure accessibility to customers.
If you are interested in more information on this research, please send an e-mail to Francesca Valente, Corporate Communications, at email@example.com, with your full name, company name, job title, telephone number, company e-mail address, company website, city, state and country.
Other research services offered under the Frost & Sullivan Chemicals & Materials Growth Partnership Service program include: Engineering Polymers Market in Colombia, Mexican Industrial Water and Wastewater Treatment Chemical Market, Pulp and Paper Chemicals Market in Brazil, and Brazilian Municipal Water and Wastewater Treatment Chemicals Market, among others. All research services included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.
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SOURCE Frost & Sullivan
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