Relocation of appliance companies in Nuevo León will trigger $3 billion in purchases: CLELAC

Monterrey, NL. The Business Meeting, to be held within the framework of ENCLELAC on August 20th at Cintermex, is expected to trigger investment from more than 30 leading companies in the home appliance sector interested in relocating operations currently located in other regions of the world.

Baldwin Britton, president of the Nuevo León Home Appliance Cluster (CLELAC), highlighted that these companies could generate purchase orders for around $3 billion, double the amount reached in 2024, when agreements totaling $1.5 billion were finalized.

“This event will bring together industry, academia, and government. More than 30 key companies are looking to move operations to Nuevo León, and that's great news. All of this is driven by the tariffs imposed by the United States, which opens up an opportunity for Mexico to grow through this event,” Britton emphasized.

1,500 business meetings are expected between major buyers and 250 suppliers, in addition to the participation of approximately 500 attendees. Britton announced that participation will also be open to suppliers from other industries, such as the automotive industry, the CEO of Plastiexports said.

The cluster's goal is to strengthen the triple helix—business, academia, and government—through training and certifications that enable more suppliers to integrate into the value chains.

He explained that the home appliance sector requires quality and excellence from its suppliers because:

• Mexico is the second-largest manufacturer of refrigerators with freezers in the world, exporting more than $4.4 billion annually.
• It is the world's third-largest stove manufacturer, with exports exceeding $735 million.
• $750 million worth of washing machines are exported.
• It is estimated that the Mexican home appliance industry exports more than $16 billion.
• More than 100 million units are manufactured each year, and 80% of production is for export. The production target is 120 million units by 2029.

How to avoid tariffs?

Steel, aluminum, and copper are essential for the manufacture of household appliances due to their physical, mechanical, and electrical conduction properties. Without these metals, the industry could not operate efficiently, as steel provides structure and durability; aluminum provides lightness and thermal capacity; and copper is essential for electrical conduction and motors.

Baldwin Britton explained to El Economista that it is through the relocation of suppliers, and bringing them closer to the sources of use, that what helps the industry mitigate the costs of tariffs.

"Tariffs clearly have an impact. Prior to the event, we conducted an analysis of risk mitigation strategies for companies. It's clear that a nearly 25% increase in steel and aluminum prices translates into a 5% increase in the price of household appliances. Some companies are subsidizing this, while others have eventually passed it on to end consumers," he explained.

However, it should be noted that while 80% of Mexico's home appliance production is for export, the domestic market is growing, with households with greater purchasing power, allowing manufacturers to sell their products in the country. Furthermore, the USMCA will open the door to regionalization.