Canieti to award US$150k high tech contract before year end

Mexican electronics and IT association Canieti aims to hire a consultancy this year to study which high tech industries Mexico should try to attract to the country, Canieti chief executive Rogelio Garza told BNamericas. "We are working with the economy ministry which is going to give us funds to hire a consultancy to determine what technologies are out there and where we [Mexico] have to go," Garza said. Canieti is asking the ministry to fund 80% of the US$150,000 cost of hiring a consultancy, he said, adding the government should release the funds shortly. Among the bidders to date are the Tecnologico de Monterrey as well as other universities. Mexico has taken advantage of its proximity to the US to build up a significant manufacturing base along the border during the last 30 years in everything from electronics to auto parts. However, Mexico's factory belt risks becoming a rust belt as more and more businesses move to China where wages are lower. "High volume with a low mix will go to China: calculators, small TVs, cellphones, etc. Where Mexico is strong is in low volume and high mix like things that require a lot of supervision from the US. For example, medical electronics," he said. "Mexico has to go from made in Mexico, which is manufacturing, to created in Mexico which [means] designed here. We need more value added in Mexico," Garza said.