MEXICO CITY.- The ghost of tariffs torments the general directors of companies in Mexico. And is that 84% of these executives are worriedin a moderate or extreme way, due to the impact that the imposition of taxes on the commercial goods that are marketed could bring, which forces them to innovate in their companies, according to the new edition of the Ey-Parthenon CEO Outlook Survey report.
“Geopolitical uncertainty has transformed the way the CEOs in Mexico address their strategies. With an approach to operational efficiency and diversification, they are adapting to a changing panorama that will continue to characterize the following months and in the long term. The decisions of today, in terms of investment, strategy and technology, will be fundamental to ensure the growth and competitiveness of organizations in the coming years,” he tells Forbes Mexico Olivier Hache, leading partner of Ey-Parthenon in Latin America.
Lee: Let’s see if we pass the test: Ebrard on tariffs
Executives are adjusting their strategies to mitigate the risks that threaten their organizations to new commercial rules, tariffs and geopolitical conflictssays the study that includes the perspectives of CEO in Mexico from sectors and industries such as consumption, health, financial services, energy, infrastructure, telecommunications and technology.
Among the conflicts that would have the greatest impact for companies, the commercial tensions between the United States and various countries like Mexico (31%), Canada (14%) and China (10%), according to the report.
“We are seeing a turn towards more defensive strategies, where the diversification of suppliers and operational efficiency become criticism. Geopolitical uncertainty has ceased to be an abstract risk to become a determining factor in decision making,” said Olivier Hache.
Lee: Trump warns tariffs from 15 to 20% for members who do not negotiate
Among the main measures that the CEO are taking in front of the current environment, are the following:
- 50% have decided to accelerate innovation in products and materials to reduce losses related to raw materials affected by tariffs.
- 40% have chosen to internally absorb additional costs through operational efficiencies.
- 26% have transferred the increase in customers costs through strategic prices adjustments.
- Another 26% are exploring national supply alternatives and reconstructing supply networks locally.
- While 24% have diversified its supply chain by transferring production or supply to regions not subject to tariffs.
More technology
On the other hand, technology also allows companies to move towards their objectives. 44% of companies are accelerating their investments in artificial intelligence (AI) for the positive results obtained, another significant part; while 26% prefer to move cautiously due to regulatory complexity and uncertain environment.
It is important to note that a 100% of the CEOs surveyed by ey-parthenon plan to perform Transactions In next year, either by mergers and acquisitions (M&A), Disinversionssplits or outputs (10%) or joint ventures and strategic alliances (82%).
50% of those who are considering them to acquire similar companies With the aim of expanding its main operations, while 33% seek to expand towards new markets or business lines.
“Entrepreneurs are at a turning point: the optimism they reflect is accompanied by a realistic conscience about external challenges. The decisions that are being made today-in the matter of investment, technology and risk management-will be determinants for the competitive positioning of organizations in the coming years,” says Olivier Hache, leading partner of Ey-Parthenon in Latin America.
Inspy, discover and share. Follow us and find what you are looking for on our Instagram!
