June 19, 2023
Festo is investing $100 million to build a plant in Monterrey, Mexico to reinforce supply chain resilience for key products used in the Americas. It highlights the company’s “Local for Local” philosophy to position it closer to specific markets with great growth potential.
Construction has begun, with initial production slated for 2025. Once in operation, the plant will provide automation products and solutions for sectors in the Western Hemisphere such as automotive, mining, pharmaceuticals and electronics.
The plant site is located in the renowned “Interpuerto Monterrey” industrial park, where other well-known international companies and customers also have manufacturing facilities. It’s located near the city’s airport as well as Festo Monterrey facilities, and is only 200 km from the US border.
Monterrey is one of the most important industrial locations in Latin America with international universities and well-trained professionals. Festo is well-connected there with important customers as well as relationships with the technical universities. It also maintains a Festo Didactic training centre and sales office in the city.
With Canadian manufacturing suffering from a growing labour shortage, the participation of industry in skills development is emerging as a vital component in hiring and retention. The needs are stark: The Canadian Exporters and Manufacturers Association says almost 40% of its members have jobs they can’t fill. Five years from now, 60% expect to be short-staffed, especially when it comes to skilled trades. Statistics Canada forecasts the country’s labour force growth rate will remain below 0.2% for the rest of the decade, below replacement levels.