The home appliance sector is growing.

The home appliance sector in Mexico has been affected by the tariffs imposed by the United States, specifically on steel and aluminum imports; however, the industry has managed to mitigate the impact by substituting imports and strengthening the regional supply chain, according to Baldwin Britton, president of the Home Appliance Cluster Council (Clelac).

Britton also explained that although tariffs inevitably pose a challenge for domestic manufacturers, large companies have sought strategies to address and adapt to the situation.

“Our partners have been affected by the tariffs—that’s undeniable—and it’s having an impact on steel and aluminum. However, companies are bringing in more local producers. We’re talking about a process of import substitution: although there are plants with up to 85 percent domestic content, there’s still 15 percent left to incorporate. This opens the door for new investments in Nuevo León,” he said.

The executive also explained that trends in the cooling subsector have led to growing demand, which has been affected by climate change as well as electricity consumption. It is stated that the air conditioning sector is growing and that the manufacturing of these products has undergone a major transformation. The goal is to compete through innovation and the creation of well-paying jobs.

Emmanuel Loo, Undersecretary for Investment and Innovation at the Nuevo León Ministry of Economy, has stated that the local integration plan has not only helped companies circumvent tariffs but also enabled them to comply with the rules of origin imposed by the USMCA.

Loo also said that tariffs on steel and aluminum affect a large part of the market in Mexico, but ways have been found to adapt and get used to those tariffs. Similarly, he notes that the cooling segment in North America could grow from US$50 billion to US$75 billion in the coming years, with a growth rate of approximately 6%, driven by demand for cooling systems for data centers and artificial intelligence infrastructure.

There are currently 345 companies in this sector in Nuevo León, which has created more than 35,000 jobs and accounts for 40% of the country’s household appliance exports, with a value exceeding US$4 billion.

So it came as no surprise that Britton pointed out that Mexico is the world's fifth-largest manufacturer of household appliances.