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SMI - GERAL Q1 2026
+0.64 % 291.76
=
INCOME RETURN
+2.21 % +
APPRECIATION RETURN
-1.57 %
USD / MXN
0.00 % 17.21
GDP (Quarterly, Millions)
-1.24 % 29,325,765.23 PTS
CPI
0.00 % 3.94 PTS
Reference Rate
0.00 % 6.50 PTS
Closing IPC
0.00 % 67,954.55 PTS
UDIs
0.00 % 8.83 PTS

Automation Increases Intralogistics Efficiency in Industrial Facilities by 20% or More

  • Automation in intralogistics processes is key to the competitiveness of the Mexican industrial market. Despite significant challenges such as a lack of investment and limited urgency to adopt advanced technological solutions, automation improves productive and logistical efficiency by 20% or more, driving sustainable growth and better integrating Mexico's industrial sector into global supply chains.

Jose Manuel Setien is Kivnon's Country Manager Mexico and Central America. Photo: SiiLA.
Jose Manuel Setien is Kivnon's Country Manager Mexico and Central America. Photo: SiiLA.
By: SiiLA News
07/04/2024

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.

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ABOUT SiiLA

Founded in 2015, SiiLA is the industry leading REsource for comprehensive commercial real estate market insights, news and events across Latin America. The SiiLA suite of innovative products drive greater accuracy, efficiency, and strategic advantages for top players in the commercial real estate industry.

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Transactions


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