Yucatan Suppliers in Mexico Forecasting 20% Export Climb Post Beryl

Hurricane Beryl swept through Mexico’s Yucatan Peninsula in early July but suppliers there are quickly getting back in business.

When the early-season hurricane Beryl hit the Yucatan Peninsula after creating havoc in several Caribbean nations, manufacturers in the region were prepared for the worst. Yet only a few days later most companies in the region were back up and running, minimalizing the interruption of goods from the region bound for the U.S.

In fact, according to a report in The Sourcing Journal, producers in the area are now forecasting a 20% boost in exports this year specifically from the Yucatan but also from Mexico in general. The region is a key apparel manufacturing center, producing around 2 million garments a month, primarily destined for the U.S. and the Caribbean. Large maquiladora plants (usually owned by U.S, companies producing specifically for the United States) make goods for brands such as Nike, Levi’s and La Perla, among others.

The Yucatan region is also a key supplier of tropical Mexican shirts, or guayaberas, exporting as many as 110,000 monthly.  

Fernando Munoz, who owns uniform maker Unifer and is a board member of the big trade lobby group Canaive’s Yucatan state branch, told Sourcing Journal “The exchange rate is making it much cheaper for brands to buy in Mexico.” While exchange rates gave an advantage to other Latin American nations for a while, he said that situation has stabilized and the election of Claudia Sheinbum last month as the new president of Mexico should be an additional positive for Mexican suppliers. “We are happy with Sheinbum who we think is very prepared to lead this country,” said Munoz, adding “There are new tax incentives coming for Puerto Progreso, a huge port town. Manufacturers investing there won’t have to pay taxes for three years.”