The first aeronautical manufacturing plant in the country will be installed in Celaya, Guanajuato, where Horizontec will be manufacturing the Halcyon 2 (H2) aircraft as the main project. Giovanni Angelucci, CEO of Horizontec, said the company emerged in 2013 as an innovative startup in the Mexican aerospace sector. It was consolidated after creating a prototype sports plane made of carbon fiber and the concern to commercially produce models of this type. Horizontec is one of the few companies in Mexico that designs its own aircraft. He said that it is important to explore this aspect of the aeronautical industry in Mexico, as it has great potential for the future. (Source: Mexico Industry)
Texas Manufacturing Growth Picks Up
Mike Willis, executive director of the South Texas Manufacturers Association (STMA), explained that, in his view, there was a slight increase in activity in December 2022. Demand continued to weaken but at a slower pace than in the past. Expectations were for a continued weakening of the economy, and concerns about a recession were a worry. Rising interest rates and the cost of credit are becoming a bigger concern, but some relief is being seen in labor hiring. Wage rate increases may be moderating slightly.
Willis explained that, on a macro level, he has been reading that shipments of manufactured goods are down more than 40 percent from China, and it has gone from a glut of loaded container ships, waiting to land in U.S. ports, to a glut of empty containers around the world and a drastic reduction in demand for product. (Source: Mexico Industry)
Why Is the Dollar Low in Mexico?
In recent weeks, the dollar has fallen in its price to the Mexican peso. But why is this happening?
The strengthening of the peso is due to factors such as the arrival of remittances from Mexicans from abroad, the increase in exports of raw materials, the increase in foreign direct investment, and the increase in tourism—Mexico is one of the best countries in Latin America to visit—and from the demand of foreigners who want to live their retirement in a different country.
According to Bloomberg, the Mexican peso reached 18.952 per dollar, the lowest in almost three years. So far in 2023, the exchange rate accumulated an appreciation of 3.42% and is positioned as the third best-performing currency in a basket of 23 emerging currencies. In addition, the attractive rate differential between Mexico and the United States, which currently stands at 600 basis points, is another element that plays in its favor. (Source: Mexico Industry)
