The exchange rate is helping industries in Puebla
The exchange rate has begun to play a significant role for industries in Puebla, noted Carlos Sosa Spinola, the local president of the National Chamber of the Manufacturing Industry (Canacintra), who expects this trend to continue for the rest of the year.
The article notes that the peso's strength lowers the costs of machinery, components, and raw materials abroad; however, it also reduces the value of the peso in terms of the revenue that exporting companies earn.
In Puebla, the manufacturing industry remains strongly focused on international markets in sectors such as the automotive, auto parts, metalworking, and textile industries, leaving them exposed to fluctuations in the dollar, even though each sector faces different consequences. Similarly, companies that import machinery, technology, components, or raw materials price their goods in dollars, so a strong peso can provide some relief.
Given this situation, Puebla is putting pressure on part of the automotive supply chain, since the major automakers and their suppliers depend on exports, yet at the same time need to import certain components.
