Adopting Best Practices Spurs Competitiveness

Nowadays, there is a great deal of reference to the implementation of good practices in companies, especially regarding production, without fully understanding their implications and benefits. Implementing best practices is not a matter of faithfully copying the actions carried out in other countries; it is necessary to have a broad understanding of the local situation and of the company in order to make the necessary adjustments to ensure a successful implementation. 

Anyone who is directly or indirectly related to the paint industry, whether liquid or powder, is well aware that paint is designed and formulated as an engineering product based on chemistry, due to all the situations and inclemencies that it must withstand to fulfill its function. Hence, the implementation of best formulation and manufacturing practices are essential to ensure its functionality and quality. Globally, there are regulations and restrictions for such formulations to comply with increasingly stringent ecological standards that force products to be sustainable and increasingly environmentally friendly. Unfortunately, these rules and regulations are not implemented in all countries.  

The new treaty between Mexico, the US and Canada (USMCA) introduced some significant changes to transform the dynamics of trade between the three countries, including a sunset clause. Unlike the previous agreement, this one lasts 16 years, with the option to meet, negotiate and review the document after six years, as well as the possibility of renewing the agreement once the 16 years have elapsed.

Specifically in the case of the automotive sector, the agreement revises the percentage of regional value content (RVC) the automotive industry must adhere to. Seventy-five percent of a car’s parts must be from the three countries. r The goal is to strengthen the manufacturing capacity in these countries and increase the workforce in the automotive industry. This provision is generating enormous opportunities for companies established in the country, but it is accompanied by enormous challenges to have the necessary certifications to serve the original automotive market. Hence, the implementation of best practices and detailed knowledge of the regulations that apply in other countries is essential.

The new trade rules of origin also aim t0 drive higher wages by mandating that 40-45% of automobile manufacturing be performed by workers earning at least US$16 per hour on average by 2023; that is, three times the pay normally received by a Mexican worker. The three-country pact also includes a chapter on labor, which anchors labor obligations at the core of the agreement, making enforcement more demanding. 

Skilled labor is increasingly scarce and fixed costs are becoming very high, so once again, best manufacturing practices and automation are essential to optimize costs, and increase quality and consistency.

There is also a chapter in the treaty on intellectual property rights, which seeks to address U. concerns about boosting innovation, generating economic growth and supporting jobs, as well as a new chapter on digital trade, which contains stricter controls than any other international agreement. Last but not least is the environment chapter, which addresses environmental issues, such as air quality and marine debris. 

In this regard, we at the National Association of Paint and Ink Manufacturers (Anafapyt) continue to interact with the relevant authorities to proactively define and implement new Mexican standards to accompany these requirements. Anafapyt continuously keeps its associates up to date with all the information relevant to these issues and seeks to generate training to support them in their evolution toward total adherence to aspects of technological innovation in the development of products that meet the new requirements and standards, growth in sustainability and sustainability as companies.  

We also promote communication among our guild by encouraging the exchange of ideas with key industry players, which contribute to the solution of the common problems faced by our associates. We even have the Technical Committee of National Standardization of Paints, Varnishes, Coatings and Inks for Printing (COTENNAREC), which has been recognized by the General Directorate of Standards of the Ministry of Economy since 2018.

In addition to all this, we work closely with the World Coatings Council (WCC), formerly called the International Paint and Printing Ink Council (IPPIC), which is recognized for its convening power in Latin America regarding different global issues and in the participation of presentations, in addition to collaborating on environmental, economic and social issues. 

As a representative of the coating companies that interact in Mexico, we will promote at all times the strict adherence to the existing laws and regulations and those that are about to be developed. Our commitment is also with end users so that they always receive the functionality and quality they expect from our products.