Mexican Momentum (for pyrotechnics)

By: Alejandro Mantecón

A truck loaded with fireworks travels along a modern highway from Zacatecas in Mexico to Laredo in Texas. This product shipment joins many others that are quality new products manufactured in Mexico for the market in the United States and Canada.

Mexico is emerging as a potential supplier of pyrotechnics. Today in the state of Zacatecas, a 6 six hour drive from Laredo Texas (USA),  companies such as TNT Fireworks, Sirius Pyrotechnics, PyroSpark Torero and MJG Technologies have been established, changing the face of New World, a community until recently mainly agricultural, transforming it into a cluster of reliable products with high added value.

This unique concentration of foreign companies in Mexico is due to several factors which facilitate their establishment in a country with attractive advantages in cost in terms of Mexican labor and fiscal stimulus. The strategic location of this particular Mexican state enables efficiencies in logistics and even a significant decrease in inventories for US companies with large orders compared to orders placed in Asia, many months in advance, resulting in high costs of inventories with a financial cost and opportunity.

There are significant weaknesses in the Mexican Momentum, such as a lack of product certification laboratories and a shortage of quality raw materials with reliable standard features. However these same weaknesses can lead to opportunities for laboratories such as TNO, UTEC Corp, LOM or BAM Federal Institute for Materials Research and Testing and national/international suppliers such as Quimica Bicentenario or Nitroparis, as well as Asian companies that can relocate manufacturing and warehouse distribution or provide raw materials to a new point of consumption which is Mexico.

There are plenty of opportunities in this extraordinary environment for exports. The Mexican market is in itself an opportunity: more than 122.3 million people can generate business in personal consumer fireworks, pyrotechnics for law enforcement and civil protection, industrial pyrotechnics and fireworks shows. These opportunities require knowledge to ensure quality, competitive costs and safety, which in turn open other opportunities for consultants and companies that can provide the knowledge or technology to for manufacturing through strategic alliances, joint ventures or technology transfer contracts.

This new scenario can be thwarted as a result of the logical reaction to expect protection of existing the Pyrotechnics Industry by the Mexican government and a similar reaction of domestic enterprises conditioned to look askance at the new arrival of foreign companies at home.

alejandromantecon@mac.com

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