U.S., Canadian Progressive Stampings Exports Primed to Pop

One of the major tooling suppliers in Canada is ramping up the impending demand for tooling of prog, or progressive dies construction as well as their stampings.

The driving market of this demand? It's apparently Mexico.

Closely related to the North American auto parts industry, the Mexican auto parts industry has approximately 1,000 auto parts manufacturers. Approximately 70% of these operations are subsidiaries of foreign corporations, including those from the United States and Canada. The export-oriented auto industry is Mexico’s largest single manufacturing sector. As a result of Mexico’s low labor costs and current technological developments in the auto industry, many automotive companies are investing in Mexico. Companies look to Mexico for lower manufacturing and export costs.

According to the Mexican Auto Association, the best export opportunities for North American firms are OEM parts and components, hybrid vehicle components, suspension systems, along with materials, pre-assembly components such as small and progressive stampings, electronic components, equipment and specialized tooling.

It is predicted that U.S. and Canadian automotive parts, component and equipment manufacturers will realize an increase in export sales as global assembly plants relocated to Mexico.