July 18, 2023
Sodick announced on June 30 the establishment of a new local subsidiary, “SODICK TECNOLOGIA MEXICO”, in Mexico City, Mexico, and the start of full business development in July this year.
In the automotive industry, the company’s main customer segment, both sales and production peaked in 2016-2017 and have remained sluggish since then, partly due to the impact of the pandemic. However, since the year before last, in 2021, both sales and production have been on a steady recovery trend.
At the same time, due to the impact of recent inflation in the U.S. (rising labor, material, and outsourcing costs), an increasing number of companies, especially automotive suppliers, are shifting production to Mexico as a supply base for the U.S.
In the latest figures for May 2023, automobile production in Mexico reached 340,000 units per month, up 25% from the same month last year. In addition to automobiles, an increasing number of parts suppliers in the aircraft, electronics and consumer electronics industries have shifted production of parts destined for the U.S. from Greater China to Mexico in recent years, and Mexico’s position as a production base for parts destined for the U.S. is becoming increasingly important, especially for manufacturing industries.
With the establishment of a new local subsidiary, Sodick also aims to develop its business and expand sales in Mexico as well as other countries in Central and South America.
As for future plans, in the first two years, the company is setting up a local warehouse and inventory, focusing on EDM machines, and establishing an immediate delivery structure. After that, the company will work to strengthen local service engineers and other personnel to expand product sales and services.