Maquiladora sector suffers as economic recession has "massive" impact

By Enrique Duarte
CNNExpansión.com

Despite efforts by President Felipe Calderón to retain jobs in the midst of the economic crisis, the maquiladora industry and export manufacturing operations will close 2009 with a loss of 70,838 jobs.

The Figure represents a slight recovery, said Cesar Castro, president of the National Council of the Maquiladora Industry (CNINME). From October 2008 to October 2009, the industry had lost some 125,838 jobs, but it recovered about 55,000 between November and December.

A total of 50 of the mainly foreign-owned factories out of the 5,268 operating in Mexico closed, while others were merged into existing operations.

"Unfortunately, the recession had a massive impact," Castro said in a meeting with the media.

The number of people employed in manufacturing fell 9.3 percent in the ninth month of this year on an annual rate, according to the National Institute of Statistics and Geography (Inegi).

In February, President Calderon launched a program of technical stoppages that allocated about $2 billion to allow firms to temporarily halt production without dismissing employees. Some 500 firms with half a million workers took advantage of the program.

According to Mexican government figures, slightly more than 450,000 workers had their work suspended temporarily under the program, which allowed the positions to be retained.

the program The latest figures from the Mexican authorities state that the program had benefited technical stoppages little more than 450,000 jobs.

Automakers and auto parts makers were the companies that benefitted the most as they saw demand for cars plummet in the United States, where nearly all of maquiladora products are sold.

Among the companies benefiting are the automakers, mainly from foreign investors, who resented the effect of lower U.S. demand.

The maquiladora and other export manufacturing operations expect to close the year with an overall decrease in exports of at least 20 percent.

Castro will leave the CNIMME presidency of the last day of this year. Mónica González, the first woman to lead the chamber, will replace him.

Gonzalez said that just as the manufacturing was among the first to reflect the impacts of  the economic crisis, it also will be among the first to show a recovery, as the sector is closely related to industrial activity in the United States.

Indeed, she said, it already is exhibiting positive signs.

www.cnnexpansion.com/negocios/2009/12/17/las-maquiladoras-pierden-70000-empleos