Boosting Tooling Through Talent Development, Local Investment

Q: What is the Tooling Cluster’s mission, and who are the key stakeholders involved in its structure?

A: We are a civil association established in March 2018 with the core objective of strengthening the tooling value chain to enhance its competitiveness. We focus on tooling for plastic molding, dies, die casting, jigs & fixtures, and machinery manufacturing. Tooling is a transversal sector, supporting manufacturing across industries such as automotive, home appliances, medical, aerospace, toys, among others. We have 63 members, including large corporations, SMEs, educational institutions, and a research center. Key members include companies such as LEGO, Nemak, Cuprum, Metalsa, and Caterpillar, along with SMEs that manufacture tooling components or provide technical support. 

We collaborate with industry associations like the Automotive and Appliance Clusters, the Mexican Association of Mold and Die Manufacturers (AMMMT), and the Plastics Institute. Our academic and R&D partners include Tec de Monterrey, Universidad Autónoma de Nuevo León (UANL), technical schools, and CIDESI, among others. Government agencies also participate in the cluster.

Q: What actions is the cluster taking to address the shortage of specialized talent in the industry?

A: From the beginning, talent development has been one of our biggest challenges. That is why we teamed up with UANL to create a technical training center. The university built a 725m² facility, and we equipped it with pressing, turning, welding, and CNC simulators. We launched dual training programs in machining and tooling, following the German model, with small groups of 16 students. Most instructors are technicians from our member companies, which keeps the training hands-on and aligned with real industry needs.

We also developed specialized programs in areas like die and mold maintenance, jig manufacturing, and tool design. These programs were built by bringing companies and experts together to shape the syllabus and train instructors, usually technicians with field experience. This process takes time, but it is delivering results.

Q: What opportunities and challenges are arising as a result of Plan México’s industrial policy?

A: Having a national strategy is a step in the right direction, but execution remains the key challenge. Public technical schools frequently operate with outdated equipment and overcrowded classrooms, which limits the effectiveness of training efforts. One of the main goals of Plan México is to train 200,000 technicians, but this objective will have limited value if the training is not aligned with industry demands and if quality is not prioritized.

The plan to develop regional industrial hubs and shift investment to less developed states is strategically sound. However, in Mexico, the real issue often lies in how policies are implemented. Strong intentions must be supported by concrete, well-executed plans in order to generate long-term impact.

Q: How have US tariffs impacted Mexican companies, particularly in manufacturing?

A: Tariffs on steel, aluminum, and other materials have impacted the automotive sector directly. However, the need to meet USMCA regional content requirements has driven many companies to seek local suppliers. This shift from Asian to North American sourcing creates new opportunities for Mexican manufacturers.

The challenge is scale. Aside from Brazil and Argentina, Mexico is larger than most economies in the region. Many Latin American countries see Mexico as a big market. Given the country’s proximity to the United States, the world’s biggest market, it makes economic sense to prioritize trade there.

Q: How are protectionist trade policies impacting global supply chains?

A: These policies may be temporary, but they are already influencing investment decisions. Some projects planned for Mexico may move to the United States under political pressure. To avoid becoming a backdoor into the US market, Mexico should consider aligning tariffs on Asian imports. Some Chinese firms offer limited local value, importing fully assembled products with no local sourcing. In contrast, US manufacturers rely on domestic suppliers, strengthening the value chain. Mexico should support local companies and adopt policies that encourage foreign-local partnerships, similar to China’s model, which could drive long-term industrial development.

Mexico has prioritized foreign investment over domestic entrepreneurship. While international companies receive tax incentives, land, and infrastructure, local businesses do not receive the same support. Equal support for Mexican firms could revive local manufacturing capacity.

Q: How is the cluster enhancing collaboration among SMEs?

A: There is a strong potential for collaboration. For example, shared use of underutilized equipment — such as high-cost machines needed only a few weeks per year — could significantly reduce costs across multiple SMEs. The main barrier is cultural, as building trust between companies remains a challenge. The cluster plays a key role as a neutral facilitator between firms, academia, and research institutions.

Q: What are your expectations for the upcoming USMCA review?

A: The review will likely strengthen rules of origin, requiring materials and components, not just final assembly, to be sourced within North America. This will increase compliance costs but ensure a level playing field. Other areas that will likely be addressed include environmental standards, competition rules, and legal certainty. For Mexico, preserving the agreement, even with tighter rules, is far better than losing preferential access to the US market.