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Automating intralogistics (within industrial facilities) processes is crucial for maintaining business competitiveness and optimizing operational efficiency. In Mexico, automation has grown since the pandemic, with many companies reducing their workforce focused on routine tasks and reallocating personnel to more specialized roles. However, this advancement faces challenges that limit profitability and the degree of investment in autonomous technological solutions. These challenges include initial implementation costs, a need for more trained personnel to manage and maintain these systems, and resistance to organizational change.
According to Jose Manuel Setien, Kivnon's Country Manager Mexico and Central America, the integration of automated systems and advanced technologies into intralogistics processes is not just a necessity, but a gateway to global competitiveness and industrial growth opportunities. This is particularly significant for Mexican companies, given the rise of nearshoring and Mexico's strategic position in manufacturing and supply chains for the North American market.
"The demand for automation is growing, although companies seek cost-effective solutions due to the global financial situation. The trend is towards profitable automation, and Mexico is an attractive hub for low-cost, high-quality manufacturing, especially in key sectors such as automotive [...], which generates high demand for automation in the logistics sector," explained the executive of the company that designs, manufactures, and implements Automated Guided Vehicles (AGVs) or Autonomous Mobile Robots (AMRs).
According to a report by the renowned market research and business intelligence firm Expert Market Research (EMR), the industrial automation market, including programmable logic controllers, robots, conveyor systems, and digital technologies, is expected to reach $266.4 billion by 2032, a 56% increase from 2023. In Latin America alone, EMR estimates an annual compound growth rate of 5.9% during 2024-2032, exceeding the expected global rate of 5.1%.
Despite these projections, in countries like Mexico, the adoption of robotic technology faces significant challenges related to global macroeconomic fluctuations limiting investments, the low cost of Mexican labor reducing the urgency to adopt automated solutions, and the need for greater technical specialization in the workforce requiring specific training and education programs.
However, as competitiveness increases and the benefits of automation become more evident, more companies are beginning to invest in these technologies. In this regard, data from CEPAL indicates that job automation has been on the rise over the last decade in Mexico. Currently, over 40% of jobs are prone to automation.
Setien explained that the role of automation technologies is not to eliminate jobs, but to transform and specialize human resources. As automation raises the level of specialization required, it drives improvements in technical and professional education, ensuring a more skilled and adaptable workforce for the future.
Therefore, Setien emphasized that the responsibility of companies like Kivnon extends beyond developing cutting-edge technology to optimize intralogistical industrial processes. He asserts that it is also crucial to assist companies in reallocating employees to more strategic roles, such as logistics management and the use of computerized systems, to increase the value contributed by each worker. Additionally, these new technologies are comprehensive in enhancing and expediting processes, allowing employees to focus on tasks requiring unique human skills. Technology, in this sense, serves as a tool that complements and strengthens human work, ensuring balanced and sustainable progress in industries.
According to SiiLA, Mexico's industrial real estate market encompasses over 100 million square meters of gross leasable area, predominantly high-quality (Class A) properties that can more readily adapt to technological changes. These industrial facilities are designed with the flexibility needed to integrate new technologies and automated systems, enabling companies to update operations without significant infrastructure investments.
However, "the main challenge and opportunity for the automated vehicle and robot sector in Mexico is to meet the growing demand for automation," explained Jose Manuel Setien.
For the Kivnon executive, AGVs and AMRs are automated systems that execute transport, storage, and material handling tasks in intralogistics processes and production lines. They reduce human errors, lower labor costs, optimize storage space, increase processing speed, and enable continuous 24/7 operations, enhancing efficiency and productivity in inventory management and material flow.
According to data from the Spanish-origin company, which operates over 120 units in Mexico, autonomous vehicles and robots significantly enhance intralogistics operation flows, with potential efficiency improvements ranging from 20% to 27%, depending on the case. This includes highly customized load and transport machines with capacities ranging from 200 to 2,000 kilograms, transporting materials in one or multiple directions, towing heavy loads, and stacking pallets with complex maneuvers in confined spaces, using magnetic navigation or mapping to guide and operate effectively.
For Mexico to continue advancing in industrial automation, it is imperative for the public and private sectors to join forces. This collaboration is not just about creating a favorable environment for technological innovation, but about securing Mexico's position in the global market. It involves investing in technical education, specialized training programs, fiscal incentives, and policies that promote the adoption of advanced technologies. Only through this collective effort can companies fully capitalize on the competitive advantages of automation, ensuring sustainable growth and greater integration into global supply chains.
For more information on this and other Mexican commercial real estate market trends, explore SiiLA REsource or contact us at contacto@siila.com.mx.











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