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Automation in Mexico

Threat or Opportunity?

October 22, 2019

The decline in the labor force in countries with leading global economies such as Europe, China and Japan, is a phenomenon that has implications both in the capacity and organization of production and in the demand for products and services.

Our main market, the United States, has the lowest unemployment rate in 50 years. Companies are reporting difficulties filling vacancies in both specialized and unskilled jobs.

The response of companies is a determined investment in automation to control labor costs and improve productivity.

According to a study by Banco de México (Automation in Mexico from a Regional Perspective), two thirds of the employed population in the country are employed in occupations with a high probability of automation.

Among the activities with the greatest possibilities for automation, the primary activities stand out; accommodation and food preparation services; construction; manufacturing industries; and financial services.

The occupations with the greatest propensity to be automated correspond to those with the lowest educational level.

The most skilled workers can benefit from automation since they are an essential element to facilitate the adoption of new technologies (World Bank, 2016 and 2018).

The impact by region will be differentiated. The North seems to be better positioned to navigate the era of automation due to its export vocation and higher educational level. While the Southeast looks more vulnerable.

Without a doubt, automation will be one of the most disruptive trends in the global economy in the next decade.

It will be one of the key topics that we will analyze in the Planning and Budgeting in a Disruptive Scenario seminar that will be held in CDMX, November 7 and 8 and in Monterrey on November 13 and 14, 2019.

(Reports Here)

It will be a unique experience to shape your company towards success with lower levels of risk.

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