ELECTRIC MOTORS,
GENERATORS AND
TRANSFORMERS IN MEXICO:
ISIC 311
Euromonitor International
May 2013
ELECTRIC MOTORS, GENERATORS AND TRANSFORMERS IN MEXICO: ISIC 311
LIST OF CONTENTS AND TABLES
Headlines ..................................................................................................................................... 1
Market Trends .............................................................................................................................. 1
Production Trends ........................................................................................................................ 2
Competitive Environment ............................................................................................................. 2
Prospects ..................................................................................................................................... 3
Industry Overview ......................................................................................................................... 3
Table 1
Table 2
Chart 1
Chart 2
Key Industry Indicators 2007–2012 .............................................................. 3
Key Industry Indicators: Annual Growth 2008–2012 .................................... 3
Production vs Nominal GDP 1997–2018 ...................................................... 4
Producer Volume Index vs Producer Price Index 1997–2012 ...................... 4
Industry Sectors ........................................................................................................................... 5
Table 3
Table 4
Table 5
Chart 3
Production by Sector: Value 2007–2012 ...................................................... 5
Production by Sector: Annual Growth 2008–2012 ....................................... 5
Production by Sector: Share of Total 2007–2012 ......................................... 5
Industry Sectors’ Growth Indices 1997–2018 ............................................... 5
Firmographics............................................................................................................................... 6
Table 6
Table 7
Table 8
Table 9
Table 10
Table 11
Table 12
Number of Companies by Employment Size 2007–2012 ............................. 6
Number of Companies by Employment Size: Annual Growth 2008–
2012 ............................................................................................................. 6
Number of Companies by Employment Size: Share of Total 2007–
2012 ............................................................................................................. 6
Production by Employment Size 2007–2012................................................ 7
Production by Employment Size: Annual Growth 2008–2012 ...................... 7
Production by Employment Size: Share of Total 2007–2012 ....................... 7
Industry Leaders: Company Production Shares in 2010 .............................. 7
Import and Export ......................................................................................................................... 8
Table 13
Table 14
Table 15
Chart 4
Import and Export 2007–2012 ...................................................................... 8
Export Destinations 2007–2012 ................................................................... 8
Importing Countries 2007–2012 ................................................................... 8
Import vs Export Growth 1997-2012............................................................. 9
Market and Buyers ....................................................................................................................... 9
Table 16
Table 17
Key Market Indicators 2007–2012 ................................................................ 9
Key Market Indicators: Annual Growth 2008–2012 ...................................... 9
Suppliers .................................................................................................................................... 10
Table 18
Table 19
Table 20
Supply Structure 2007–2012 ...................................................................... 10
Supply Structure: Annual Growth 2008–2012 ............................................ 10
Supply Structure:Share of Total 2007–2012 .............................................. 10
Labour Costs .............................................................................................................................. 11
Table 21
Chart 5
Chart 6
Key Statistics 2007–2012 ........................................................................... 11
Number of Employees vs Average Salary 1997–2012 ............................... 11
Output per Employee vs Average Salary 1997–2012................................. 11
Industry Attractiveness Index ..................................................................................................... 12
Table 22
Chart 7
Attractiveness Index Composition .............................................................. 12
Attractiveness Index of Electric Motors, Generators and Transformers
Among Other Mexico Industries ................................................................. 12
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ELECTRIC MOTORS, GENERATORS AND TRANSFORMERS IN MEXICO: ISIC 311
Chart 8
Binary Diagram of Attractiveness Index ..................................................... 12
Attractiveness Index: Explanation .............................................................................................. 13
Future Outlook............................................................................................................................ 15
Table 23
Forecasts 2013–2018................................................................................. 15
Definitions................................................................................................................................... 15
Electric Motors, Generators and Transformers ....................................................................... 15
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ELECTRIC MOTORS, GENERATORS AND TRANSFORMERS IN MEXICO: ISIC 311
ELECTRIC MOTORS, GENERATORS
AND TRANSFORMERS IN MEXICO:
ISIC 311
HEADLINES
 Mexican market for electric motors, generators and transformers outperforms overall Mexican
economy and nearly doubles in value over review period of 2006-2012
 Business demand represents 78% of market value in 2012
 Imports constitute 26% of Mexican market in 2012, down from 35% in 2006, representing
greater competitiveness of local producers
 Turnover of local producers increases 91% from beginning of review period to Mx$122.5
billion in 2012
 Total number of companies increases 35% over 2006-2012, dominated by micro-size
establishments
 Industry turnover projected to surge at 9% annual rate over forecast period to reach Mx$207
billion in 2018
MARKET TRENDS
 Over 2006-2012 Mexican demand for electric motors, generators and transformers increased
by an average annual rate of 12% to reach a value in excess of Mx$126 billion by the end of
the review period.
 Intermediate business spending in the market amounted to 78% of its value in 2012. At the
same time, purchases of market products as investment goods contributed an additional 21%
of total market sales. In value terms purchases for investment purposes soared by 130% over
the review period, albeit seeing a 2% decline in 2009.
 Electric motors are widely used for key compression, ventilation, pumping and conveyance
activities. According to World Bank, driven by surging energy-intensive manufacturing
activities and increasing population, Mexican electricity production increased from 249 billion
kWh in 2006 to 271 billion kWh in 2011, resulting in additional demand for power generation
apparatus.
 Demand for power generation equipment was generally shaped by natural gas-, coal- and oilfired power plants, which dominate the Mexican electricity production industry, accounting for
50%, 12% and 18% of energy produced in 2011, respectively. Mexico operated two nuclear
reactors at the Laguna Verde site in Veracruz, responsible for 4% of electricity production. In
February 2007 the Federal Electricity Commission signed contracts with Spain’s Iberdrola
Engineering and Alstom to install new turbines and generators in the Laguna Verde plant at a
cost of US$605 million. After the main modifications, both reactors’ operating life was
extended to 40 years, and operating power upgraded by 20% from approximately 1,300 MWe
at the beginning of review period to 1,600 MWe in 2011.
 Since 2006 the value of imported production sold on the market increased by 113%; however
imports’ share decreased by nine percentage points to 26% of total market value in 2012. The
top three import partners were the US, China and Germany, with their value shares of total
imports standing at 52%, 18% and 9%, respectively in 2012. Imports from China were gaining
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ELECTRIC MOTORS, GENERATORS AND TRANSFORMERS IN MEXICO: ISIC 311
momentum, increasing their share by seven percentage points over 2006-2012; this was
indicative of increasing competition from Asian production in the Mexican market.
PRODUCTION TRENDS
 The turnover of local producers grew at a slightly slower pace than the overall market, seeing
a 91% increase over 2006-2012.
 The largest category of the industry under review was the manufacture of electric motors and
generators, comprising 57% of total turnover in 2012. Miscellaneous industrial electrical
apparatus generated a further 29% of total income, while power distribution transformers
accounted for the remaining 14% of turnover.
 As electric motors use around 45% of global electricity, local producers are under more strict
efficiency standards, imposed by the government. New Mexican Minimum Energy
Performance Standards (MEPS) came into action in 2010, replacing those adopted in 2002.
According to regulations that adjust energy performance standards to manufactured goods,
the minimum efficiency level was set to IE2. All motors must be provided with a specific rating
plate according to the standard. Furthermore, production must be tested and approved by
accredited laboratories annually. Implementation of the new standard restricted sales of
manufactured goods, that are less energy efficient than the minimum criteria, and forced the
electric motors, generators and transformers industry to innovate.
 Over the period under review domestic producers were unable to strengthen their positions in
foreign markets, as the Mexican electric motors, generators and transformers industry’s
export share declined by seven percentage points from 2006 to 38% of total output in 2012.
Trade flows were directed mainly towards the US and Canada, which captured 82% and 8%
of the value of Mexican exports respectively in 2012.
 The industry’s cost structure changed slightly over the review period. Supplier expenses,
accounting for the major 93% share of total industry costs in 2012, doubled in value and
increased in importance by five percentage points from 2006. This was mainly due to
significant increases in the prices of principal materials, such as precious and non-ferrous
metals, basic iron and steel.
 Compared with business-related expenditures, labour costs changed to a lesser extent,
growing by only 13% over the period under review. As remuneration costs were increasing
faster than the number of people employed, the average annual wage rate went up from
Mx$140,380 in 2006 to Mx$157,406 in 2012. A sharp upward shift of 90% in total industry
costs was matched by a 56% increase in producer prices and growth in volume demand.
Consequently, over the review period the Mexican electric motors, generators and
transformers industry experienced stable profit margins of around 6% of turnover.
COMPETITIVE ENVIRONMENT
 Over the review period the number of companies active in the electric motors, generators and
transformers industry increased by 35% to almost 1,300 enterprises in 2012. The reviewed
industry is highly concentrated, as micro-sized companies employing fewer than 10 people
accounted for 82% of the total number of establishments, but the major share (85%) of
turnover was generated by the largest companies, employing more than 250 people.
 One of the largest players in the field is Xignux SA de CV, a Mexico-based company which
operates in such categories as cables, transformers, infrastructure and foods. The company
has 25 production facilities and 20,000 employees. Exports account for 58% of the company’s
revenue.
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ELECTRIC MOTORS, GENERATORS AND TRANSFORMERS IN MEXICO: ISIC 311
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 Mitsubishi Electric de Mexico SA de CV, owned by Mitsubishi Electric Corp, is a Mexicobased company which manufactures various machinery and equipment including: control
systems, transformers, motors, elevators, electronic controllers, and industry automation
solutions such as robots, software, chips, etc. The company has one manufacturing facility
and 500 employees in Mexico.
 Some notable manufacturers include Industrias Iem SA de CV, IGSA SA de CV, and
Cummins Generator Technologies Mexico S de RL de CV, among others.
PROSPECTS
 Over the forecast period of 2013-2018 the turnover of local producers is expected to rise by
69%. The positive outlook for energy generation and other manufacturing industries will
maintain a stable development in demand for electric motors, generators and transformers.
However, the increasing importance of Chinese production in the international arena might
result in corrections to the forecast long-term growth rates.
 To meet the country’s energy policy requirements, which aim to increase carbon-free power
generation to 35% of capacity by 2024 and lessen reliance on natural gas resources, the
Mexican Government actively supports further development of nuclear plants. In 2010 Mexico
Federal Electricity Commission (CFE) proposed four scenarios for new power generation
capacity, including major investments in nuclear and wind power.
 However, recent discoveries of trillions of cubic feet of gas, as well as the disaster in
Fukushima Dai-Ichi plant, delayed plans to build as many as 10 new nuclear reactors by
2028. Until renewable energy becomes less costly, Mexico’s Energy Ministry prepares to shift
the country’s long-term strategic plans to a greater dependence on natural gas-fired
thermoelectric power plants, and seeks private investment of around US$10 billion to expand
its pipeline network.
INDUSTRY OVERVIEW
Table 1
Key Industry Indicators 2007–2012
Production
(Turnover)(MX$ million)
Value Added (MX$ million)
Profit (MX$ million)
Profit Margin (%)
Producer Volume
Index(1997=100)
Producer Price
Index(1997=100)
Number of Enterprises
Number of Employees
Output per Employee(MX$
'000)
Average Salary (MX$ '000)
Source:
Table 2
2007
2008
2009
2010
2011
2012
73,653
72,943
72,101
90,564
100,006
122,485
11,952
3,890
5.3
135
11,872
3,997
5.5
121
11,499
3,877
5.4
111
12,999
4,923
5.4
133
13,583
5,546
5.5
143
15,379
6,861
5.6
165
233
258
278
291
299
318
1,037
52,887
1,393
1,037
53,235
1,370
1,064
53,437
1,349
1,178
55,054
1,645
1,241
52,898
1,891
1,293
52,657
2,326
150
145
140
144
148
157
Euromonitor International from official statistics, trade associations, trade press, company research.
Key Industry Indicators: Annual Growth 2008–2012
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ELECTRIC MOTORS, GENERATORS AND TRANSFORMERS IN MEXICO: ISIC 311
Production (Turnover) (%)
Value Added (%)
Profit (%)
Profit
Margin(Percentage points)
Producer Volume
Index(1997=100, %)
Producer Price
Index(1997=100, %)
Number of Enterprises (%)
Number of Employees (%)
Output per Employee (%)
Average Salary (%)
Source:
Chart 1
Source:
Chart 2
Source:
Passport
2008
2009
2010
2011
2012
-1.0
-0.7
2.8
0.2
-1.2
-3.1
-3.0
-0.1
25.6
13.0
27.0
0.1
10.4
4.5
12.7
0.1
22.5
13.2
23.7
0.1
-10.6
-8.2
19.7
7.7
15.1
10.8
7.6
4.9
2.5
6.4
0.0
0.7
-1.6
-3.5
2.6
0.4
-1.5
-3.3
10.7
3.0
21.9
2.7
5.3
-3.9
14.9
3.4
4.2
-0.5
23.0
6.0
Euromonitor International from official statistics, trade associations, trade press, company research.
Production vs Nominal GDP 1997–2018
Euromonitor International from official statistics, trade associations, trade press, company research.
Producer Volume Index vs Producer Price Index 1997–2012
Euromonitor International from official statistics, trade associations, trade press, company research.
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ELECTRIC MOTORS, GENERATORS AND TRANSFORMERS IN MEXICO: ISIC 311
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INDUSTRY SECTORS
Table 3
Production by Sector: Value 2007–2012
MX$ million
Electric Motors
andGenerators
Power and
DistributionTransformers
Miscellaneous
IndustrialElectrical
Apparatus
Total
Source:
Table 4
2007
2008
2009
2010
2011
2012
42,457
38,973
36,373
48,321
54,089
69,505
10,778
11,754
12,319
13,185
14,182
17,271
20,418
22,216
23,409
29,058
31,735
35,709
73,653
72,943
72,101
90,564
100,006
122,485
Euromonitor International from official statistics, trade associations, trade press, company research.
Production by Sector: Annual Growth 2008–2012
%
Electric Motors
andGenerators
Power and
DistributionTransformers
Miscellaneous
IndustrialElectrical
Apparatus
Total
Source:
Table 5
2008
2009
2010
2011
2012
-8.2
-6.7
32.8
11.9
28.5
9.1
4.8
7.0
7.6
21.8
8.8
5.4
24.1
9.2
12.5
-1.0
-1.2
25.6
10.4
22.5
Euromonitor International from official statistics, trade associations, trade press, company research.
Production by Sector: Share of Total 2007–2012
%
2007
2008
2009
2010
2011
2012
Electric Motors
andGenerators
Power and
DistributionTransformers
Miscellaneous
IndustrialElectrical
Apparatus
Total
57.6
53.4
50.4
53.4
54.1
56.7
14.6
16.1
17.1
14.6
14.2
14.1
27.7
30.5
32.5
32.1
31.7
29.2
100
100
100
100
100
100
Source:
Chart 3
Euromonitor International from official statistics, trade associations, trade press, company research.
Industry Sectors’ Growth Indices 1997–2018
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ELECTRIC MOTORS, GENERATORS AND TRANSFORMERS IN MEXICO: ISIC 311
Source:
Passport
Euromonitor International from official statistics, trade associations, trade press, company research.
FIRMOGRAPHICS
Table 6
Number of Companies by Employment Size 2007–2012
Number of companies
2007
2008
2009
2010
2011
2012
micro (1-9 employees)
extra small(10-19
employees)
small (20-49 employees)
medium (50-249 employees)
large (250+ employees)
Total
842
68.0
847
63.0
874
68.0
970
68.0
1,020
73.0
1,065
74.0
42.0
51.0
34.0
1,037
42.0
51.0
34.0
1,037
42.0
46.0
34.0
1,064
47.0
56.0
37.0
1,178
47.0
60.0
41.0
1,241
48.0
63.0
43.0
1,293
Source:
Table 7
Euromonitor International from official statistics, trade associations, trade press, company research.
Number of Companies by Employment Size: Annual Growth 2008–2012
%
micro (1-9 employees)
extra small(10-19
employees)
small (20-49 employees)
medium (50-249 employees)
large (250+ employees)
Total
Source:
Table 8
2008
2009
2010
2011
2012
0.6
-7.4
3.2
7.9
11.0
0.0
5.2
7.4
4.4
1.4
0.0
0.0
0.0
0.0
0.0
-9.8
0.0
2.6
11.9
21.7
8.8
10.7
0.0
7.1
10.8
5.3
2.1
5.0
4.9
4.2
Euromonitor International from official statistics, trade associations, trade press, company research.
Number of Companies by Employment Size: Share of Total 2007–2012
%
2007
2008
2009
2010
2011
2012
micro (1-9 employees)
extra small(10-19
81.2
6.6
81.7
6.1
82.1
6.4
82.3
5.8
82.2
5.9
82.4
5.7
© Euromonitor International
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ELECTRIC MOTORS, GENERATORS AND TRANSFORMERS IN MEXICO: ISIC 311
employees)
small (20-49 employees)
medium (50-249 employees)
large (250+ employees)
Total
Source:
4.1
4.9
3.3
100
4.1
4.9
3.3
100
Passport
3.9
4.3
3.2
100
4.0
4.8
3.1
100
3.8
4.8
3.3
100
3.7
4.9
3.3
100
Euromonitor International from official statistics, trade associations, trade press, company research.
Table 9
Production by Employment Size 2007–2012
MX$ million
2007
2008
2009
2010
2011
2012
micro (1-9 employees)
extra small(10-19
employees)
small (20-49 employees)
medium (50-249 employees)
large (250+ employees)
Total
1,637
746
1,656
707
1,678
707
2,106
849
2,272
911
2,790
1,086
1,385
7,796
62,090
73,653
1,353
7,794
61,432
72,943
1,324
7,466
60,926
72,101
1,661
9,688
76,259
90,564
1,748
10,456
84,619
100,006
2,100
12,810
103,698
122,485
Source:
Table 10
Euromonitor International from official statistics, trade associations, trade press, company research.
Production by Employment Size: Annual Growth 2008–2012
%
micro (1-9 employees)
extra small(10-19
employees)
small (20-49 employees)
medium (50-249 employees)
large (250+ employees)
Total
Source:
Table 11
2010
2011
2012
1.2
-5.2
1.3
0.0
25.5
20.2
7.9
7.2
22.8
19.3
-2.3
0.0
-1.1
-1.0
-2.1
-4.2
-0.8
-1.2
25.4
29.8
25.2
25.6
5.2
7.9
11.0
10.4
20.1
22.5
22.5
22.5
Production by Employment Size: Share of Total 2007–2012
micro (1-9 employees)
extra small(10-19
employees)
small (20-49 employees)
medium (50-249 employees)
large (250+ employees)
Total
Table 12
2009
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%
Source:
2008
2007
2008
2009
2010
2011
2012
2.2
1.0
2.3
1.0
2.3
1.0
2.3
0.9
2.3
0.9
2.3
0.9
1.9
10.6
84.3
100
1.9
10.7
84.2
100
1.8
10.4
84.5
100
1.8
10.7
84.2
100
1.7
10.5
84.6
100
1.7
10.5
84.7
100
Euromonitor International from official statistics, trade associations, trade press, company research.
Industry Leaders: Company Production Shares in 2010
Production share
(%, 2010)
Xignux SA De CV
Cummins Generator Technologies Mexico S de RL de CV
© Euromonitor International
12.7
2.5
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ELECTRIC MOTORS, GENERATORS AND TRANSFORMERS IN MEXICO: ISIC 311
Passport
Industrias Iem SA de CV
IGSA SA de CV
Mitsubishi Electric de México SA de CV
Other
Source:
1.8
1.4
1.3
80.2
Euromonitor International from official statistics, trade associations, trade press, company research.
IMPORT AND EXPORT
Table 13
Import and Export 2007–2012
Trade Balance(MX$
million)
Trade Balance (%)
Imports CIF (MX$ million)
Imports CIF (%)
Imported Products
inTotal Market (%)
Exports FOB (MX$ million)
Exports FOB (%)
Exported Products
inTotal Products Output
(%)
Source:
Note:
2007
2008
2009
2010
2011
2012
15,628
13,914
10,931
15,670
15,818
20,342
49.5
58,633
4.5
29.8
-11.0
61,523
4.9
32.0
-21.4
64,158
4.3
34.9
43.4
78,748
22.7
26.0
0.9
92,721
17.7
29.6
28.6
119,286
28.6
25.9
74,261
11.6
43.6
75,437
1.6
44.4
75,088
-0.5
44.5
94,418
25.7
37.6
108,540
15.0
40.2
139,628
28.6
37.6
Euromonitor International from official statistics, trade associations, trade press, company research.
Imports CIF (Costs, Insurance and Freight) is imports value with freight, insurance and other costs
incurred during transportation of goods from the port of origin. Exports FOB (Free on Board) is exports
value including freight cost up to the port of origin but excluding all other costs.
Table 14
Export Destinations 2007–2012
% share of exports
2007
2008
2009
2010
2011
2012
USA
Canada
United Kingdom
Brazil
Australia
Other
Total
88.3
3.8
1.4
0.6
0.8
5.2
100
88.0
3.3
1.4
0.6
0.8
5.9
100
85.3
6.6
1.2
0.4
0.7
5.9
100
85.0
7.5
1.1
0.9
0.9
4.8
100
83.4
8.5
1.0
0.8
0.9
5.4
100
81.7
8.1
1.1
0.8
0.8
7.5
100
Source:
Euromonitor International from official statistics, trade associations, trade press, company research.
Table 15
Importing Countries 2007–2012
% share of imports
2007
2008
2009
2010
2011
2012
USA
China
Germany
Japan
Brazil
Other
Total
54.2
14.0
8.0
4.3
3.1
16.4
100
50.3
13.6
11.8
5.3
3.3
15.7
100
47.0
16.8
12.0
3.7
3.8
16.8
100
51.2
16.0
9.3
4.3
3.9
15.5
100
49.4
16.4
8.9
4.1
3.9
17.3
100
52.0
17.8
8.9
4.3
4.2
12.8
100
© Euromonitor International
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ELECTRIC MOTORS, GENERATORS AND TRANSFORMERS IN MEXICO: ISIC 311
Source:
Chart 4
Source:
Passport
Euromonitor International from official statistics, trade associations, trade press, company research.
Import vs Export Growth 1997-2012
Euromonitor International from official statistics, trade associations, trade press, company research.
MARKET AND BUYERS
Table 16
Key Market Indicators 2007–2012
Market Size (MX$ million)
Imported Products
inTotal Market (%)
Share of
LocallyProduced
Products (%)
Trade Margins(MX$
million)
Trade Margins(% of
Market Size)
B2B Sales (MX$ million)
Households
Expenditureon Electric
Motors,Generators
andTransformers(MX$
million)
GFCF (MX$ million)
Change in Stock(MX$
million)
Source:
Table 17
2007
2008
2009
2010
2011
2012
70,821
29.8
71,587
32.0
74,446
34.9
92,946
26.0
103,233
29.6
126,033
25.9
70.2
68.0
65.1
74.0
70.4
74.1
9,197
9,459
9,482
13,172
14,259
18,428
13.0
13.2
12.7
14.2
13.8
14.6
56,806
38.9
56,516
40.0
59,761
34.5
74,458
41.1
82,244
44.6
98,812
55.5
13,589
386
14,702
329
14,460
191
18,260
188
20,422
523
26,997
169
Euromonitor International from official statistics, trade associations, trade press, company research.
Key Market Indicators: Annual Growth 2008–2012
Market Size (%)
Imported Products
© Euromonitor International
2008
2009
2010
2011
2012
1.1
2.2
4.0
2.9
24.8
-8.9
11.1
3.6
22.1
-3.6
9
ELECTRIC MOTORS, GENERATORS AND TRANSFORMERS IN MEXICO: ISIC 311
inTotal
Market(Percentage points)
Share of
LocallyProduced
Products(Percentage
points)
Trade Margins (%)
Trade
Margins(Percentage
points)
B2B Sales (%)
Households
Expenditureon Electric
Motors,Generators
andTransformers (%)
GFCF (%)
Change in Stock (%)
Source:
Passport
-2.2
-2.9
8.9
-3.6
3.6
2.9
0.2
0.2
-0.5
38.9
1.4
8.3
-0.4
29.2
0.8
-0.5
2.8
5.7
-13.8
24.6
19.3
10.5
8.5
20.1
24.5
8.2
-14.7
-1.6
-42.0
26.3
-1.7
11.8
178
32.2
-67.7
Euromonitor International from official statistics, trade associations, trade press, company research.
SUPPLIERS
Table 18
Supply Structure 2007–2012
MX$ million
B2B Purchases
Labour Costs
Taxes Less Subsidies
Costs
Source:
Table 19
2007
2008
2009
2010
2011
2012
61,701
7,927
135
69,763
61,071
7,698
177
68,946
60,603
7,471
150
68,224
77,565
7,902
175
85,641
86,424
7,852
185
94,460
107,106
8,289
229
115,623
Euromonitor International from official statistics, trade associations, trade press, company research.
Supply Structure: Annual Growth 2008–2012
%
2008
2009
2010
2011
2012
B2B Purchases
Labour Costs
Taxes Less Subsidies
Costs
-1.0
-2.9
31.0
-1.2
-0.8
-2.9
-15.0
-1.0
28.0
5.8
16.0
25.5
11.4
-0.6
5.9
10.3
23.9
5.6
23.9
22.4
Source:
Table 20
Euromonitor International from official statistics, trade associations, trade press, company research.
Supply Structure:Share of Total 2007–2012
%
2007
2008
2009
2010
2011
2012
B2B Purchases
Labour Costs
Taxes Less Subsidies
Costs
88.4
11.4
0.2
100
88.6
11.2
0.3
100
88.8
11.0
0.2
100
90.6
9.2
0.2
100
91.5
8.3
0.2
100
92.6
7.2
0.2
100
Source:
Euromonitor International from official statistics, trade associations, trade press, company research.
© Euromonitor International
10
ELECTRIC MOTORS, GENERATORS AND TRANSFORMERS IN MEXICO: ISIC 311
Passport
LABOUR COSTS
Table 21
Key Statistics 2007–2012
Labour Costs(MX$ million)
Number of Employees
Output per Employee(MX$
'000)
Average Salary (MX$ '000)
Source:
Chart 5
Source:
Chart 6
Source:
2007
2008
2009
2010
2011
2012
7,927
52,887
1,393
7,698
53,235
1,370
7,471
53,437
1,349
7,902
55,054
1,645
7,852
52,898
1,891
8,289
52,657
2,326
150
145
140
144
148
157
Euromonitor International from official statistics, trade associations, trade press, company research.
Number of Employees vs Average Salary 1997–2012
Euromonitor International from official statistics, trade associations, trade press, company research.
Output per Employee vs Average Salary 1997–2012
Euromonitor International from official statistics, trade associations, trade press, company research.
© Euromonitor International
11
ELECTRIC MOTORS, GENERATORS AND TRANSFORMERS IN MEXICO: ISIC 311
Passport
INDUSTRY ATTRACTIVENESS INDEX
Table 22
Attractiveness Index Composition
Weight (%)
Attractiveness in Stable Economic
Environment
- Industry Growth
- Demand Stability
- Profitability
- Bargaining Power over Suppliers
- Bargaining Power over Buyers
- Entry Barriers
- Foreign Competition
- Foreign Opportunities
Attractiveness in Turbulent Economic
Environment
- Industry Growth
- Industry's Cyclicality
- Industry's Dependence on Households
- Durability of the Products/services
- Resistance to Drop in GDP
- Dependence on Other Industries
- Influence on Other Industries
Overall Attractiveness Index
Source:
Chart 7
Source:
Chart 8
Rating
21
10
5
10
5
5
5
5
5
88
14
4
66
45
17
4
96
22
5
5
5
5
12.5
12.5
5
94
17
14
21
97
16
5
43
Euromonitor International from official statistics, trade associations, trade press, company research.
Attractiveness Index of Electric Motors, Generators and Transformers Among
Other Mexico Industries
Euromonitor International from official statistics, trade associations, trade press, company research.
Binary Diagram of Attractiveness Index
© Euromonitor International
12
ELECTRIC MOTORS, GENERATORS AND TRANSFORMERS IN MEXICO: ISIC 311
Source:
Euromonitor International from official statistics, trade associations, trade press, company research.
ATTRACTIVENESS INDEX: EXPLANATION
The Industry Attractiveness Index has two parts, evaluating:
 the industry’s performance in a stable economic environment;
 the industry’s performance in a turbulent economic environment and the industry’s resistance
to economic downturn.
The first part of the index represents the industry’s performance in a stable economic
environment in the period of 2004–2007. It covers several criteria of the industry’s performance:
 Industry’s growth: the compound annual growth rate of the industry’s production (turnover).
 Demand stability: coefficient of variation of year-on-year growth indexes of demand.
Coefficient of variation is a ratio between the standard deviation and sample mean. It
complements the measure of average growth rates by giving the growth stability
characteristic.
 Industry’s profitability: average Profit share of production (turnover) over five years of stable
economic environment.
 Bargaining power over suppliers: the measure is calculated as the industry’s average
percentage share in its three major suppliers’ sales. It shows the industry’s potential power to
negotiate the prices and other supply conditions of its major intermediate purchases.
© Euromonitor International
Passport
13
ELECTRIC MOTORS, GENERATORS AND TRANSFORMERS IN MEXICO: ISIC 311
 Bargaining power over buyers: the measure is calculated as the industry’s average
percentage share in its three major buyers’ costs. It evaluates the potential power of the
industry to negotiate the price of its production and set other sales conditions.
 Barriers of entry: a share of large companies in the total number of companies within the
industry. The share of big companies is a proxy for entry barriers and concentration measure
within the industry.
 Foreign competition: average annual import share in market size, average of five years. It
shows how strong local companies are in comparison with foreign competitors.
 Global opportunities: export share of industry’s production (turnover), the average of five
years. It shows the external industry’s possibilities to supply the foreign markets and implicitly
demonstrates the competitiveness of the industry’s products/services abroad.
The second part of the index reflects the industry’s vulnerability in economic downturn. It is
calculated during recessionary years (2008–2011) and based on several criteria:
 Industry’s growth: the compound annual growth rate of production (turnover).
 Dependence on capital purchases: ratio of non-investment (B2B) purchases of industry’s
products/services to investment purchases of industry’s products/services. Usually, goods
and services that are treated as capital by companies are pro-cyclical, their reaction to
changes in economic conditions is more sensitive in comparison with B2B purchases.
 Dependence on household consumption: the average ratio of household consumption
expenditure to business purchases of the product is used to evaluate the sensitivity of the
specific production category. Usually B2B goods and services experience amplified
fluctuations in their demand compared to final consumption spending categories, which
exhibit lower levels of volatility and are less sensitive to economic downturn.
 Durability of the industry’s product: time between the purchase and the complete wearing out
of a product/service. The longer the time the more durable the good is. Demand for durable or
semi-durable goods usually has greater sensitivity to economic slowdowns as time of service
can be prolonged for these goods.
 Industry’s resistance to changes in a country’s GDP: measured as the elasticity coefficient of
how sensitively the industry reacts to changes in a country’s GDP.
 Industry’s dependency on other industries (forward linkage): the variable, measured as the
horizontal sum of all coefficients of Leontief’s matrix inverse. It measures the cumulative
output decrease in the sector, if the final demand for the production of all sectors were to
decrease by one unit. In a period of economic downturn, it is a measure representing the
power of other industries to affect the industry of interest.
 Industry’s ability to affect other industries in the economy (backward linkage): measured as
the vertical sum of the coefficients of Leontief’s matrix inverse. It shows how much influence
the industry has on other industries and how strong these links are. It measures the extent to
which a unit change in the demand for the product causes production increases in all the
industries of the economy. Being one of the key industries in the economy gives additional
strength and resistance to economic shocks.
Each measure of the industry’s performance is compared across all industries in the country
and is then attributed to a corresponding percentile judged on its performance (scale from 1 to
100). The better the value of criteria the higher percentile the industry reaches. The percentiles
are then weighted by their relative importance and the final score is calculated as the weighted
average.
© Euromonitor International
Passport
14
ELECTRIC MOTORS, GENERATORS AND TRANSFORMERS IN MEXICO: ISIC 311
Passport
FUTURE OUTLOOK
Table 23
Forecasts 2013–2018
Turnover by category
(MX$ million)
Electric Motors
andGenerators
Power and
DistributionTransformers
Miscellaneous
IndustrialElectrical
Apparatus
Total
Source:
2013
2014
2015
2016
2017
2018
78,483
85,833
93,663
101,744
110,758
119,507
18,745
20,565
22,706
24,879
27,198
29,558
39,501
42,862
46,525
50,225
54,265
58,163
136,729
149,261
162,894
176,848
192,221
207,227
Euromonitor International from official statistics, trade associations, trade press, company research.
DEFINITIONS
Electric Motors, Generators and Transformers
Electric motors, generators and transformers is an aggregation of Electric motors and
generators, Power and distribution transformers and Miscellaneous industrial electrical
apparatus.
Electric Motors and Generators
This category includes manufacture of DC motors and generators, universal AC/DC motors,
AC motors and generators (alternators), generating sets with compression-ignition internal
combustion piston engines, generating sets with spark-ignition engines, other generating sets,
electric rotary converters.
Power and Distribution Transformers
This category includes manufacture of liquid dielectric transformers and other transformers.
Miscellaneous Industrial Electrical Apparatus
This category includes manufacture of ballasts for discharge lamps or tubes, static converters,
other inductors.
© Euromonitor International
15