Borderlands is a weekly rundown of developments on the planet of United States-Mexico cross-border trucking and commerce. This week: Mexico’s automotive manufacturing hits 9-year low; Amazon begins hiring for El Paso success middle; Port Houston appoints first chief enterprise fairness officer; and new Arizona distribution middle to assist e-commerce development.
Mexico’s automotive manufacturing hits 9-year low
Mexico’s month-to-month auto manufacturing and exports for passenger and business autos proceed to be pummelled by the consequences of each the COVID-19 pandemic and semiconductor chip shortages.
The nation’s passenger car manufacturing sector produced 257,813 vehicles and lightweight vans in October, a 25.9% decline from the identical interval a 12 months earlier, in keeping with Mexico’s Nationwide Institute of Statistics and Geography.
It was the bottom degree for October since 2012. Exports of passenger autos dropped 19.9%, to 224,535 models throughout the identical interval.
Manufacturing of business autos declined 4.5%, to 13,660 autos, whereas exports declined 40.3%, to five,571 models.
“One of many largest difficulties we now have confronted in current months is the scarcity of semiconductors chips,” stated José Zozaya Délano, govt president of the Mexican Automotive Business Affiliation (AMIA), stated in Vanguardia-Industrial.
“This downside is the results of the over-demand of those elements for the manufacture of apparatus akin to online game consoles, cell telephones, computer systems, whose demand elevated unexpectedly as a result of COVID-19.”
Mexico’s automotive manufacturing trade — which incorporates car meeting and elements manufacturing — is the No. 1 overseas funding attractor to Mexico, in keeping with AMIA.
There are 26 meeting vegetation throughout Mexico, using virtually 1 million individuals.
Greater than 80% of Mexico’s auto manufacturing is for export. The USA continues to be the principle vacation spot nation for exports of passenger autos and tractor vans at 94% of complete gross sales in October, adopted by Canada at 2.4% and Colombia with 1.7%.
The ports of entry in Laredo, Texas, and Otay Mesa, California, simply south of San Diego, are the 2 busiest U.S.-Mexico border crossings for imports of assembled autos and auto elements.
In accordance with FreightWaves’ SONAR platform, freight volumes in Laredo (OTVI.LRD) are up week-over-week as of Thursday however down barely year-over-year. San Diego’s outbound tender volumes (OTVI.SAN) are up in comparison with final 12 months however down week-over-week.
The passenger car automakers in Mexico with the largest year-over-year decreases in manufacturing throughout October have been:
- Basic Motors (NYSE: GM), -68.6%.
- Kia (KRX: 000270), -38.4%.
- Volkswagen (OTCMKTS: VWAGY), -37.6%.
- Audi (OTCMKTS: AUDVF), -32.3%.
- BMW (OTCMKTS: BMWYY), -31.3%.
Throughout October, GM, Ford Motor Co. (NYSE: F) and Nissan (OTCMKTS: NSANY) halted plant operations in Mexico as a result of a scarcity of semiconductor chips.
“The scheduling adjustment is because of a short lived provide constraint attributable to the worldwide scarcity of semiconductors,” GM stated in a press release. “Nonetheless, this era will present us with the chance to finish unfinished autos on the plant and ship these models to sellers to assist meet the robust buyer demand for our light-duty pickup vans.”
Mexico-based truck maker Dina (Diesel Nacional) confirmed zero manufacturing throughout October, in comparison with 16 models it manufactured throughout the identical month final 12 months, in keeping with information from Mexico’s Administrative Register of the Automotive Business of Heavy Autos.
Different truck makers in Mexico displaying declining year-over-year manufacturing throughout October have been:
- Isuzu (OTCMKTS: ISUZY), -63.6%, 24 vans produced
- Freightliner (OTCMKTS: DMLRY), -13.7%, 7,329
- Kenworth (NASDAQ: PCAR), -8.5%, 1,269
Japanese truck maker Hino (OTCMKTS: HINOF) produced 87 vans at its plant in Silao, Mexico, throughout October, a 295% improve in comparison with the identical interval final 12 months. Worldwide Vehicles noticed manufacturing improve 14% through the month, manufacturing 4,643 vans.
Amazon hiring 500 individuals for El Paso success middle
Amazon (NASDAQ: AMZN) introduced Wednesday it has begun hiring employees for greater than 500 full-time positions forward of the launch of its success middle in El Paso, Texas.
The 625,000-square-foot success middle is scheduled to open by the tip of November. Workers will work alongside Amazon robots to choose, pack and ship small gadgets akin to books, electronics and toys to prospects, in keeping with a launch.
Amazon’s minimal beginning wage is $15 an hour. The power was introduced by Amazon in July 2020 and will finally create a complete of 700 full-time jobs.
Port Houston hires first chief enterprise fairness officer
Maxine Buckles has been named Port Houston’s chief enterprise fairness officer, the place she can be liable for implementing and administering range, fairness and coaching applications.
Within the newly created place, Buckles will function a member of the manager management group, which is concentrated on range, fairness and inclusion on the port.
Buckles beforehand served as Port Houston’s chief audit officer, liable for planning and executing operational, monetary and compliance insurance policies. She has additionally held the place of company controller on the port.
Buckles holds a bachelor of science diploma in accounting from Xavier College and an MBA from Tulane College.
New Arizona distribution middle to assist e-commerce development
Chicago-based actual property developer CA Industrial not too long ago held the groundbreaking for the primary part of the Luke Logistics Heart in Glendale, Arizona.
The 1.5 million-square-foot industrial growth will embrace 4 buildings on 90 acres geared toward supporting the e‑commerce sector in Arizona, in keeping with a release.
“The speedy development of e‑commerce has created an unprecedented want for logistics-oriented areas, and this momentum is just not anticipated to decelerate anytime quickly,” stated Michael Podboy, president of CA Industrial, in a press release.
Every constructing will characteristic 32-to-40-foot clearance for tractor trailers, together with cross dock and rear loading capabilities, a gated truck courtroom, trailer storage, and 60-foot velocity bays (an area adjoining to the loading areas used to maneuver items shortly).
Glendale is within the Phoenix metro space.
Extra articles by Noi Mahoney