MT Magazine September/October 2025

THE INTERNATIONAL ISSUE

FEATURE STORY

30

The Lay of the Land(s) What’s driving demand for MT around the world? Our AMT Tech Center directors break down the top five industries in their regions, reveal key tech trends, and share insights on the government spending, foreign direct investment, manufacturing policies, and geopolitical forces shaping the landscape. Plus, they’ll spotlight what’s ahead – and what to watch.

SOUTHEAST ASIA

Southeast Asia For more information, contact Mike Lauer, director, Southeast Asia, at mlauer@AMTonline.org. Top Industries • Automotive: The Association of Southeast Asian Nations (ASEAN) is comprised of 10 countries from the region, including some of the world’s fastest-growing economies, and promotes economic and security cooperation. Thailand leads auto production among ASEAN nations, while Vietnam’s VinFast drives EV demand. • Electronics and electrical: This sector sees tremendous FDI, with investments from Samsung, Intel, and Apple, especially in Vietnam and Malaysia. • General manufacturing and machinery: Growth is supported by large investments like Lego’s $1 billion factory in Vietnam. • Aerospace: Maintenance, repair, and overhaul centers have been established in Singapore and Thailand. Malaysia’s aerospace manufacturing sector is growing. Manufacturing Technology Trends • Southeast Asia (SEA) is seeing strong adoption of smart manufacturing, 5-axis milling, automation, and digital twin technologies. • Demand is rising for high-precision CNC machines, laser cutting, and automated assembly systems. Market, Policy, and Geopolitical Drivers • Large amounts of FDI are coming into SEA, particularly Vietnam (up 48.6% in early 2025), Malaysia ($19 billion in the first half of 2024), and Thailand (up 38% in 2024). • Some SEA governments may increase U.S. technology purchases to balance trade surpluses. • Tariff uncertainty from the United States could impact export-oriented manufacturing. In August, tariffs on several SEA countries were reduced, including Malaysia (24% to 19%), Thailand (36% to 19%), and Vietnam (46% to 20%).

MEXICO

Mexico For more information, contact Carlos Mortera, senior director, Latin America, at cmortera@AMTonline.org. Top Industries • Automotive: The strongest consumer of MT is projected to reach $150 million in production value for parts and assembly in 2025 – even as supply chains are realigned. • Off-highway, industrial machinery, and electronics: Major companies like Foxconn, Flextronics, Caterpillar Inc., John Deere, Polaris, and Freightliner contribute billions in output. • Medical devices and mold and die: These industries boast positive projections as supply chains continue to reshape. Manufacturing Technology Trends • Demand for cutting tools, fixturing, and automation is increasing as companies realign supply chains. • Interest in U.S. technologies is strong due to Mexico’s proximity and relationship-building potential. Market, Policy, and Geopolitical Drivers • Mexico President Claudia Sheinbaum’s Plan Mexico strategy promotes SME development and value-added processes. • The United States-Mexico-Canada Agreement, a key trigger of supply chain integration and value-added initiatives, will be reassessed in 2026, offering opportunities for reshoring and regional integration. • In 2024, $2.7 billion in MT consumption was recorded, pointing to strong opportunities for suppliers looking to localize.