The Most Relevant Issues for Four Key Productive Sectors in 2023

Organizations in all industries in 2023 are more aware that the economic, political, and social environment does not remain static, and that the conditions under which they operate can change frequently. They have learned to be resilient and pay attention to what is happening, making decisions in near real time to prevent circumstances from negatively impacting their business.

Once companies accelerated their digital transformation, they were concerned with protecting the health of customers and employees, and sought alternatives to keep operating and establish new alliances with partners and suppliers. Today, they are focused on aspects that are critical and characteristic of their industries.  

In this regard, I believe that it is especially important to address the issues that four key industries in Mexico will be focusing on in 2023, and how they are addressing them to maintain their competitiveness and profitability today and in the future.

Financial Services: Focus on Risk

This sector is preparing for a complicated environment in 2023 and in subsequent years because of the economic uncertainty caused by the pandemic and the socio-political phenomena that dominate the global agenda.

For this reason, players in the financial sector will focus their business plans on evaluating risks, such as market, credit, liquidity, legal, and operational risks, to which they will be exposed. They will create more aggressive strategies to capture more markets in areas such as credit and placement, such as savings.  

Although in the last two years there has been a greater focus on providing more personalized services and campaigns to reach customers with the right messages and thus achieve greater conversion, there is still much to be done. The investment that has been made in analytics and technology, which today are a commodity, will begin to pay off to achieve it more effectively.   

Telecommunication: 5G optimization

The transition from 4G to 5G technologies promises great potential, but also significant challenges. In fact, 5G technology is being used successfully in corporate environments and is making great strides forward in the telecommunications industry.

Companies in the telecom sector (telcos) will focus this year on a fundamental topic: optimizing 5G and effectively managing bandwidths and the deployment of the necessary infrastructure. Although these organizations have allocated resources to hardware, they must still implement the software tools that allow them to balance the road that the data travels through.  

Currently, mobile phones are used less for making calls and more for accessing data-based services, such as video, audio, messaging, social networks, and shopping. Hence, bandwidth becomes a key issue for 5G networks to perform optimally.  

On the other hand, in 2023, telcos will continue to pay attention to the customer journey by customizing campaigns and being more creative when it comes to attracting new subscribers.

Retail: Reducing Shrinkage

The pandemic led the retail sector to pay greater attention to consumer needs, how to meet them, and to perceive the most subtle changes in their purchasing behaviors. In 2023, this will continue to be on its agenda, although now it will also direct its efforts to reduce its shrinkages.

Accurately managing shrinkage becomes critical to avoid economic losses and optimize inventory control for companies, particularly when handling perishable products.  

It should be remembered that the pandemic changed consumption patterns a lot and boosted the growth of some types of products over others. Now, faced with a new reality, the balance is tilted toward others that lost traction.  

In 2023, retailers, especially in Mexico, could be seen to focus on optimizing their in-store products. Few have bothered to make a mix of products that allow them to maximize sales and reduce their inventories, an area that will represent exceptional opportunity for them. 

Government: Fundraising Objective

In 2023, the government sector, at its federal and state levels, will focus on raising tax collection. In fact, the current administration has been implementing a strategy for a couple of years to increase collection efficiency and reduce tax evasion and avoidance.

According to the Tax Administration System (SAT), throughout 2022, the general tax collection, federal tax auditing and foreign trade auditing administrations received MX$374.48 billion (US$20 billion) through audits; an increase of 10% compared to the previous year.  

2023 will be a complex year, in which many industries will be impacted by the adjustments in the economy, the intensification of the war between Russia and Ukraine, and the flow of goods and services between countries and the rearrangement of supply chains.  

In Mexico, the outlook is no different. The 2023 elections in the State of Mexico and Coahuila, and the start of the presidential campaigns heading toward 2024, inflation that cannot be controlled despite government programs, an increase in violence, and the tense relations with the countries to the north within the framework of the USMCA, among many other forces, will play a decisive role in the direction taken by the country and the companies that operate in it.