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Aerospace Industry and MRO in Mexico Seek to Leverage the USMCA and Lead the Region

Aerospace Industry and MRO in Mexico Seek to Leverage the USMCA and Lead the Region

Mexico’s aerospace industry faces a new reality defined by geopolitical conflicts and nearshoring. MRO and Sustainable Aviation Fuel (SAF) may be central.

The aerospace sector is currently going through its largest period of change since the introduction of composite materials in aircraft structures during the 1990s and the integration of digital technologies into avionics systems. Industry players must now adapt to new geopolitical rivalries, the realignment of supply chains, inflationary pressures, technological disruption, and volatile energy markets.

In addition, uncertainty over logistics derived from conflicts between nations and stricter trade policies is forcing companies to look for regional partners closer to home.

“Never before has there been such pressure for the industry to change its competitiveness model,” states the Keys to Positioning the Aerospace Industry in Mexico analysis prepared by KPMG partners.

Mexico aims to consolidate itself as a center for advanced aerospace manufacturing, but also seeks to climb up the value chain by capitalizing on four key pillars:

  • The integration of aerospace supply chains throughout North America
  • Stabilization of OEM manufacturers
  • Boosting the country’s MRO ecosystem

Transitioning to sustainable aviation

Through these strategies, Mexico hopes to become more than just a low-cost manufacturing destination but instead play a leading role in aerospace design, engineering, certification, and specialized services with higher levels of added value.

Attracting and Integrating North America’s Aerospace Supply Chain

Experts Eliseo Llamazares, KPMG’s Aviation and Tourism Lead Partner, and Mario Hernández, KPMG’s IMMEX Segment Lead Partner, pointed out that one of Mexico’s biggest objectives is going to be stabilizing and restructuring North America’s aerospace supply chain under the recently renegotiated United States–Mexico–Canada Agreement (USMCA).

“Aerospace was one of the sectors most impacted by the pandemic due to shortages in the supply of critical components and interruptions to international transportation,” they explained. “This was the result of having a fragile supply chain overly concentrated in Asia.”

Other challenges that impacted aerospace manufacturers globally included inflation, strong demand for commercial and cargo aircraft, nearshoring, and trade restrictions and tensions surrounding tariff policies.

In spite of these issues, Mexico remains “one of the countries that strategically allies itself most with the United States and Canada due to its geographic location, cost-competitive labor market, network of free trade agreements, and consolidated industrial base,” the report stated.

“The current geopolitical scenario in which we find ourselves can be an opportunity for Mexico to strengthen and integrate production processes throughout North America,” they added. “Decreasing dependencies with nonregional countries could accelerate the aerospace manufacturing regionalization process.”

Addressing OEM Volatility

The analysis also indicated that OEMs are struggling with worldwide delivery delays on new aircraft produced due to:

  • Shortages of a qualified workforce
  • Limited availability of certified suppliers
  • Bottlenecks in Tier 1 and Tier 2 parts, especially engines, electronics, and advanced composites

Restrictions caused by international trade agreements and new regulatory requirements

These are compounded by tighter sustainability regulations and increasing requirements to adopt new technologies such as AI, advanced robotics, and additive manufacturing.

“Mexico has the opportunity to position itself as a strategic hub due to our country’s extensive pool of talent and capabilities in high-precision manufacturing,” says the report. Mexico’s abundance of suppliers, both Tier 1 and Tier 2, also makes it attractive as a platform to deploy new technologies while scaling design and engineering capabilities.

Growing MRO in Mexico

The MRO segment is quickly gaining importance as commercial aviation continues to grow globally and new aircraft deliveries continue to be delayed. A lack of components, especially engines and parts needed for repairs, has driven up TAT times, which has forced more aircraft to remain grounded and harmed airlines’ bottom lines.

A lack of skilled maintenance technicians has also created a bottleneck for MRO growth. Ironically, while new planes are being delayed production-wise, the planes that are flying are flying more cycles and hours, which is resulting in greater demand for MRO services in Mexico such as inspections, repairs, and overhauls.

Mexico is no stranger to the MRO industry, but by increasing investment in the sector, obtaining international certifications, and adopting new technologies MRO in Mexico could begin serving not just national demand but international customers as well.

Opportunities for MRO services in Mexico include:

  • Engine overhauls and component repair services
  • Line maintenance and heavy maintenance services for commercial fleets
  • Digital solutions for predictive maintenance and AI-based diagnostics
  • Regional MRO hub for North American and Latin American airlines

Mexico has the potential to be one of the most competitive MRO service providers in the Western Hemisphere if it continues to invest in policy reforms and training programs to develop a skilled workforce.

Transitioning to Sustainable Aviation

Transitioning toward sustainable aviation and lowering carbon emissions across all areas of aviation will be one of the biggest changes the industry will have to undergo in the coming years. Some key areas include:

  • Adoption of sustainable aviation fuel (SAF) as a pillar of decarbonization
  • Technological innovations in engines and advanced materials
  • Improving the aerodynamics of aircraft
  • Reducing emissions during manufacturing and industrial processes

Promoting circular economy strategies, such as repairing and reusing components rather than disposing of them.

Mexico, along with other Latin American countries, has the raw materials needed to produce Bio- Sustainable Aviation Fuel. Agricultural waste, biomass, and used oils can be utilized for domestic SAF production. Mexico and other countries in the region also have high potential for clean power generation through solar and wind energy.

As a result, a new era of aerospace manufacturing could arise in which Mexico doesn’t just produce parts but designs, innovates, repairs, integrates, and certifies sustainable aircraft and aerospace components in partnership with the United States and Canada.

Gearing Up for the Future

To remain competitive in the aerospace sector, nations will have to pivot toward purposeful manufacturing by integrating vertically and horizontally throughout the supply chain. The implementation of the USMCA, nearshoring, and the renewable energy transition may provide Mexico with a once-in-a-generation opportunity to move up the aerospace value chain and become the leading aerospace producer in Latin America.

“If public policies are adjusted to meet these new realities, attract investment, and prioritize the development of human capital while strengthening the industrial infrastructure, we could turn the current global realignment into a platform for long-term growth,” experts concluded.

One key area where Mexico could capitalize is MRO. Experts believe MRO in Mexico could be one of the aerospace industry’s fastest-growing sectors as FDI begins to enter the region and airlines look for more reliable service partners throughout North America.

      Record Foreign Investment Inflows into Brazil Mark Decade High

      Record Foreign Investment Inflows into Brazil Mark Decade High

      Overview

      Foreign Direct Investment (FDI) to Brazil totaled US$ 84.1 billion from January to November 2025, the highest level since 2014. According to the Presidency of Brazil’s Planalto Palace, this new record was made possible thanks to President Luiz Inácio Lula da Silva’s foreign policy “moving Brazil forward again,” referring to his international repositioning and diplomatic blitz over the past three years. These investment inflows into Brazil show that the country is regaining confidence from global investors such as multinational companies.

      Brazil attracted US$ 9.8 billion in Foreign Direct Investment (FDI) in November 2025, an annual increase of 72%. Investments so far this year are 13.5% higher than the US$ 74 billion accumulated in the same period of 2024. Investment inflows into Brazil closed 2025 near record highs experienced during former President Dilma Rousseff’s years from 2011 to 2014, when Brazil averaged US$ 102.4 billion per year.

      A Brazilian presidential official affirmed:

      “The real challenge is no longer whether we have a foreign policy or not. Brazil’s foreign policy is rebuilding the country and repositioning it internationally to make our economy modern again.”

      Investments by Moving Brazil Abroad

      Palácio do Planalto stated that moving Brazil forward internationally is a crucial axis for the country’s economic recovery. Brazilian diplomacy has traveled to over 500 markets worldwide since 2023.

      Highlights of moving Brazil forward internationally include:

      • Expansion of economic partnership with Europe on clean commerce and Net Zero commitments.
      • Outreach to China and India on agricultural commodities, minerals, and greenfield tech investments.
      • Restored convergence agenda with the United States on climate, industrial policy, and infrastructure financing.
      • Trade expansion with Latin America, Africa, and Asia, with Brasília becoming a champion of South-South collaboration.

      Investments were the direct result of companies viewing Brazil as a safe destination in Latin America, reinforcing strong inflows across multiple sectors.

      Key Sectors Attracting Investment

      The sectors that saw the most investments were:

      • Green Energy and Hydrogen (34%)
      • Investment in solar and wind farms in Brazil’s northeast and central-west.
      • Hydrogen hubs in Porto Seguro (Bahia), Pecém, and Suape ports.
      • Partnerships with Europe and Asia to purchase Brazil’s clean fuels.
      • Agribusiness and Infrastructure (28%).
      • Processing plants for soy, corn, and meat.
      • Railroad, port, and corridor investments to reduce logistics costs.
      • Technology and AI / Data Centers (18%).
      • Cloud companies establishing hyperscale operations in Brazil.
      • Investments in fintech, e-commerce, and knowledge market platforms.
      • Oil and Gas (12%).
      • Offshore pre-salt oil extraction.
      • Investments in refineries and oil-to-chemical plants.

      Keeping the Real Strong

      Analysts explained that foreign investment has helped keep the Brazilian real firm, as Brazil, like most of the world, faces high interest rates. Investment inflows into Brazil came at a key moment as dollars were being poured into the Brazilian economy.

      Additional positive indicators include:

      • Dollar reserves around US$ 355 billion.
      • Positive evolution of payments.
      • Less volatility of the real compared to other emerging countries.

      A Banco Central do Brasil (BCB) official claimed:

      “Foreign Direct Investment helped anchor expectations and kept the real stable during turbulent times for Brazil and the world.”

      FDI Into Brazil vs. Neighboring Countries

      Brazil was the largest receiver of foreign capital in Latin America during 2025. While Brazil reached new highs, Argentina continues to undergo economic uncertainty and political transition. Neighboring Chile has seen moderate growth and weaker capital inflows so far this year.

      Some of Brazil’s advantages include:

      • One of the largest consumer markets in the world, with over 210 million people.
      • A broad industrial sector and abundance of natural resources.
      • A robust agriculture sector.
      • A rapidly developing renewable energy sector.
      • A growing technology ecosystem.

      FDI Inflows into Brazil by Sector and Policy Reforms

      Brazil has reduced the tax burden on businesses by advancing tax reform in Congress and recently established public-private partnership programs to incentivize private capital to invest in infrastructure and logistics. Tax, PPP, sustainability, and governance reforms are helping move Brazil closer to developed-country capital market standards.

      Additional incentives for investment were developed under Brazil’s industrial policy, including:

      • Hydrogen policy
      • Lux initiatives
      • Ethanol vehicle production policy
      • Semiconductors
      • Biotechnology
      • Solar energy
      • White goods manufacturing
      • Food industry
      • Regional airline market

      President Lula’s international agenda aims not only to increase investments into Brazil but also to diversify the economy away from commodities.

      An investment analyst told Brazil Business:

      “It is not common to see capital flows like this with higher global interest rates. Brazil is showing that if governments make serious policies and can show growth prospects, investors will come.”

      Pacific Train 2026: The Megaproject Set to Transform Logistics in El Salvador

      Pacific Train 2026: The Megaproject Set to Transform Logistics in El Salvador

      The Megaproject Could Upgrade Logistics Across El Salvador

      Overview

      President Nayib Bukele announced that his administration would sign agreements with the private sector to implement a PPP model for an infrastructure megaproject widely known as the “Pacific Train.”

      Financing is expected to come from:

      • Domestic public resources from the Salvadoran government
      • Private foreign investment
      • Multilateral loans

      Discussions continue with private investors and multilateral lenders to complete financial closure. While information is scarce, government officials have touted the corridor as a flagship infrastructure project that will:

      • Upgrade the infrastructure for logistics in El Salvador
      • Enhance supply chains
      • Improve logistics quality to meet regional standards

      “The train will not only become a new transport modality for cargo and passengers but also a catalyst for development,” officials said.

      What Will Pacific Train 2026 Look Like?

      Initial details of the megaproject suggest that construction will be performed in phases, with the first development focusing on a corridor between the Port of Acajutla and Sitio del Niño, one of Central America’s largest industrial parks specializing in logistics in El Salvador.

      Highlighted features from this first section include:

      • 63 kilometers (39 miles) of rail corridor
      • Several cargo stations and container yards along the Port of Acajutla
      • Agreements with terminal operators to improve efficiency logistics in El Salvador and freight movement
      • Sitio del Niño serves as a hub for passenger trains and cargo services
      • Seven passenger boarding stations along the corridor
      • 12 bridges built to pass through seasonal rivers
      • 17 rail crossings with safety components (bridges/tunnels or signalized intersections)

      Cost estimates for this first phase are USD 300 million, and officials have dubbed it a pilot project meant to validate technical hypotheses, operations model, and consumer demand.

      “From Acajutla to Sitio del Niño, we want to show that rail transport is feasible, it can compete favorably with other transport modes, and that it’s a sustainable option for logistics in El Salvador,” said the Ministry of Public Works and Transportation.

      Connecting El Salvador with Central America and North America

      Officials have positioned the project as a regional initiative that could, in future phases, connect:

      • To San Salvador
      • Cross-border connections with Guatemala and Honduras
      • Mexico’s Maya Train megaproject

      If brought to fruition, these connections could allow for an uninterrupted rail corridor from Mexico to Honduras. Not only would this help improve connectivity across Central America, but it could also help improve El Salvador’s connections with supply chains traversing North America and Central America.

      “This project is just one of many that the Salvadoran government is pushing to turn the country into a regional hub for logistics,” said a representative from Invest in El Salvador.

      Pacific Train Route in the Context of National Infrastructure Plans

      The railway project is only one component of the Salvadoran government’s expansive national infrastructure plan. Officials have set a goal to attract USD 10.7 billion dollars in infrastructure-related investments by 2035. Investments will focus primarily on improving:

      • Port capacity at Port Acajutla
      • Construction of a new shipyard at La Unión
      • Regional ferry services
      • Roads, airports, and digital infrastructure

      In combination, these investments are expected to allow the government to establish a comprehensive logistics ecosystem and enhance El Salvador’s intermodal capabilities.

      Pacific Train Financing Likely to Come Through PPPs

      While early phases are expected to be predominantly publicly funded through domestic resources, future operations could be undertaken through PPPs that will allow foreign investors to participate in the operation and financing of the railway. Groups that may participate through these PPPs include:

      • Infrastructure development firms
      • Railway operators
      • Investment banks

      “Public-private partnerships are key in infrastructure projects, especially in developing countries,” said Juan Pablo Cordoba, lead analyst at Infrastructure Finance Corp. “Through PPPs, you can share risks with the private sector and learn from international best practices.”

      When Will the Project Begin?

      President Bukele plans on having financing secured before the end of his second term in office (2024–2029). An official start date for construction has not been released as work is still being performed on:

      • Final financing details
      • Independent feasibility studies
      • Approvals from pertinent government agencies

      Infrastructure megaprojects have become a hallmark of Bukele’s economic policy to drive FDI into the country and create employment.

      “The biggest signal you can send to investors is mega-projects,” Gabriela Rubinstein, Lead Economist for Central America at XYZ ThinkTank. “Building roads and railways tells politicians and investors you’re in it for the long run, and you’re committed to performance.”

      Investment at an Economic Level

      Implementation of the Pacific Train project could provide an instantaneous boost to various sectors of El Salvador’s economy by:

      • Decreasing logistics costs for producers
      • Increasing export competitiveness
      • Improving passenger mobility and transportation alternatives
      • Cutting greenhouse gas emissions by moving freight transportation from road to rail
      • Opening up access to Port Acajutla from industrial parks located along the corridor
      • Creating jobs in engineering, construction, logistics, and supporting services

      “Trains have played a key role in the development of many industries throughout history,” said Alberto Palau, Principal Consultant at Arellano Engineering. “Trains open up economic geography and make certain areas more economically attractive for firms to develop operations.”

      Risks to Consider Before Investing

      Investors interested in the opportunity should know that there are risks associated with the project such as:

      • Financing (both the railway and USD 10.7 billion national infrastructure plan)
      • Ensuring technical feasibility
      • Land acquisition and potential environmental impacts
      • Coordination with Guatemala, Honduras, and Mexico
      • Long-term operational sustainability

      “It’s not enough just to build these mega-projects,” said Luz Maria Arce, Transportation Policy Consultant. “If you don’t have enough demand or don’t operate it efficiently, you will not see the expected results.”

      Conclusion

      The Pacific Train could serve as a transformative megaproject for El Salvador, creating a rail corridor from its southern port to major industrial parks and potentially linking up with rail networks from neighboring countries. By upgrading logistics in El Salvador, the country may be able to position itself as a Central American leader in logistics and distribution.

      While only the first phase has been formally announced, the Acajutla–Sitio del Niño corridor should be viewed as a first step towards a much larger plan of modernizing El Salvador’s infrastructure and connecting the country to supply chains from around the world.

      “The train of the Pacific is much more than a railway that will unite different points in El Salvador,” said a Salvadoran official. “It is a vision that will unite El Salvador with the world.”

      The Floriculture Industry in Guatemala Grows

      The Floriculture Industry in Guatemala Grows

        A strong finish marked the end of 2025 for the floriculture industry in Guatemala, reflecting steady gains in the worldwide floral trade. Fresh numbers from AGEXPORT reveal rose shipments climbed 13% over last year, a clear signal of progress for crops beyond traditional farm goods. Because of natural advantages like terrain and weather, farms in Guatemala now stand alongside major foreign producers. Shifting buyer needs abroad have played into local strengths, helping push sales higher without relying on old patterns of operation. Growth in the floriculture industry in Guatemala didn’t happen overnight. It is the result of careful adaptation and consistent quality.

        This display reveals the rising competitiveness of Guatemalan growers and their swift adaptation to shifting markets, an AGEXPORT spokesperson remarked. The floriculture industry in Guatemala ranks among the fastest-growing areas in the country’s farm exports, standing out through steady progress, endurance, and strength.

        A rise of 13 percent didn’t happen spontaneously. Behind it lies deep changes in flower farming and selling methods. Because of its special weather pockets – especially up in the mountains near places like Chimaltenango, Sacatepéquez, and areas across the western highlands – Guatemala grows roses that stand out: big heads, bold shades, fresh for weeks. Nights stay chilly, days remain warm , which builds tougher stalks along with blossoms that last much longer.

        Fresh changes power the floriculture industry in Guatemala today, where high-tech greenhouses stand alongside smart watering setups to match top exporters such as those in Colombia and Ecuador. Climate automation runs quietly through these spaces, paired with nutrient-fed water flows, cutting waste while lifting quality. Presently, better ways to handle blooms after harvest keep more product moving smoothly toward markets. New types of roses fill test plots, shaped by shifting tastes across Europe and North America. A grower from Guatemala notes buyers want shades they haven’t seen before, plus stems that last weeks instead of days. Standing out means changing what grows in the fields.

        The presence of the Guatemalan floriculture industry is growing overseas

        Flowers grown in Guatemala? Most of them head straight to the United States. After that, smaller shipments go to nearby countries in Central America, along with scattered buyers across parts of Europe. Being so close to a huge market makes moving delicate blooms much easier. Distance matters when petals wilt fast. That closeness reduces travel time significantly. By 2025, new upgrades in how things move – trucks, planes, storage – began making exports smoother. Fresh flowers reached farther places without delays. Infrastructure tweaks played a quiet but strong role in the operation of the floriculture industry in Guatemala.

        Getting flowers out fast makes all the difference. Thanks to extra cargo planes leaving La Aurora International Airport, Guatemalan roses now arrive at key U.S. distribution centers – Florida and Texas – in under one day. Freshness holds up better because of it; waste drops, quality stays high, and prices stay strong. A logistics expert put it plainly: “For cut blooms, timing rules every part.” Reaching American markets in just hours? That advantage sets Guatemala apart.

        Farms nearby are seeing shifts that help local growers. When businesses want fewer delays plus safer delivery routes, being close to the U.S. gives Guatemala an edge over distant farms. Still, distance isn’t everything – timing matters just as much.

        The Valentine’s Day Effect And What Happens By 2026

        Fresh into February 2026, growers shift toward the busiest part of the calendar. Because of Valentine’s Day, farms face a make-or-break moment – one that pulls in a large chunk of total yearly rose sales. After climbing through 2025, businesses expanded output and fine-tuned delivery routes while also tightening checks on freshness ahead of the rush.

        Growers in the floriculture industry in Guatemala aren’t just sticking to classic red roses such as the well-known Freedom type. Softer colors show up more often now, along with two-toned blossoms and old-fashioned forms, especially at high-end weddings overseas. Shifts like these follow new tastes, mainly from younger customers who want something different in flower arrangements. One marketer from a rose exporter in Guatemala mentioned how soft-colored and loose-shaped blooms bring a sense of refined rarity.

        Holidays like Mother’s Day push rose orders up, while weddings keep the floriculture industry in Guatemala busy, too. Corporate gatherings add steady pressure on supply lines. Upscale hotels need fresh blooms just as often. Each of these moments spreads out income across months. That rhythm lessens the strain when one big holiday fades away.

        Economic and Social Impact

        Far beyond the shipping figures, real lives shift when roses are grown at scale. Not machines but hands shape this work – thousands find employment where few opportunities exist, mostly out in the Guatemalan countryside. From seed to sale, many steps unfold: tending plants comes first, then gathering blooms by hand. After that, stems get cleaned, sorted, and boxed. Transport moves them onward, while others handle sales and outreach. Each employs people with different skills.

        She runs her hands through bundles of fresh stems each morning. Because of roles in trimming, grading, and sealing bouquets, women fill most positions across the supply chain – finding steady work and pay through flower farming. One worker steps forward, speaking for others: “This field brought real work to so many who had none, lifting households up with earned wages.” Learning new methods on certified farms changed routines, lifted safety standards, and helped neighbors rely more closely on one another.

        From farm work come jobs in shipping goods to distant markets. Cold rooms keep produce fresh before it moves on. Boxes made nearby hold crops tightly during travel. Export teams help get items across borders smoothly. Each step feeds into another, building stronger economies along the way. Guatemala grows more than just crops – it grows opportunity through many connected trades.

        Future Challenges and Sustainability

        Pacing forward isn’t stopping worrying. Heat climbs, rains shift without warning, storms hit harder – each twist harms how much grows and how well it turns out. Some farms now build resilient greenhouses, add covers against sun spikes, and run smarter watering with less waste. Survival in the floriculture industry in Guatemala means adjusting, one grower put it plainly: standing still won’t keep crops alive down the road.

        More buyers care about eco labels, especially across Europe, where environmental and labor regulations are strict. Because of this pressure, growers in Guatemala choose external checks that promote smarter water practices, reduced chemical use, fairer field conditions, and higher pay. Access stays open when proof of these conditions is evidenced. Trust builds slowly, and prices rise, too.

        Smaller producers often struggle to get loans or new tools. Still, help comes through trade groups and public initiatives. These efforts offer guidance, skill-building, and funding. The goal? Letting midsize and modest operations in the floriculture industry in Guatemala join global sales channels. Growth in the field can then reach a larger share of the rural population.

        A Garden of Opportunities for Investment and Development

        A rise of thirteen percent in rose shipments by 2025 puts Guatemala on the map as an emerging spot for capital and growth. Because of its favorable climate, skilled labor force, and proximity to key consumers, attention from both overseas and local backers has been increasing in the flower farming sector. Across each stage – from building greenhouses through developing new plant lines, maintaining refrigerated transport, all the way to crafting enhanced bloom-based goods – potential opens up wide.

        By 2026, Guatemala’s flower farming could stand taller on the world stage. Fresh ideas, eco-friendly steps, followed by wider outreach, might keep it strong among rivals. Not just blooms for sale – these roses carry pride, one grower noted, reflecting how crops can speak for a nation overseas.

        Because farmers, sellers, officials, and global allies keep working together, growth looks likely to persist across the floriculture industry in Guatemala. New jobs may emerge in rural parts of the country as a result. Inclusion could improve alongside income gains. Progress might also support long-term environmental balance by enabling people to live off the land.

        High-Growth Sectors in Latin America: How Demographic Change is Redefining Goods and Services

        High-Growth Sectors in Latin America: How Demographic Change is Redefining Goods and Services

        High-Growth Sectors in Latin America: How Demographic Change is Redefining Goods and Services

        A growing number of companies and organizations across Latin America are expanding the range of services they offer or pivoting their business models to better serve the region’s changing demographics. Increasingly, goods and services are demanded by an aging population, making the silver economy one of the most promising high-growth sectors in Latin America.

        Latin America’s Silver Economy

        In Latin America, goods, services, and solutions that target the population of adults 60 years or older are commonly known as the “silver economy.” A mapping study by the Inter-American Development Bank (IDB) identified at least 245 actors spread across 24 countries developing initiatives and solutions in sectors such as:

        • Health and long-term care
        • Housing
        • Digitalization
        • Employment

        The study from IDB says that this segment, which has grown considerably since the pre-pandemic years of 2020, has the potential to become “an opportunity for innovation and business development that will generate jobs and income while contributing goods and services that improve quality of life and well-being for older adults.”

        Approximately 90% of these actors only operate in their home country, a detail that suggests how scaling companies that have found success in their local markets can be just as challenging as meeting the demand of growing in-market consumers.

        “At the start of a new decade, it is clear that the silver economy not only allows us to meet the demand of this population group. With well-planned public policies, it is possible to leverage this sector’s growth to benefit society as a whole,”- IDB.

        Sector Breakdown & Who’s Who

        40% of actors identified in the IDB were concentrated in the Health sector, specifically long-term care and elderly care services. This can be both a reflection of the number of small providers within the market, as well as seniors not yet being as engaged within Latin America’s consumption, investment, and job markets compared to other sectors of the population.

        Interesting data points about the silver economy:

        • 3 out of 4 organizations work for profit
        • 20 startups
        • 98 SMEs
        • 29 large companies

        NGOs, foundations, universities, government institutions, and associations are also present, creating a hybrid network of public and private stakeholders looking to meet the demands of the region’s silver economy. These stakeholders show just how much the silver economy has grown from fragmented care options to a holistic network impacting goods and services offered throughout Latin America.

        Highlighted sectors and companies include:

        • Digital health solutions
        • Senior housing
        • Job and professional integration platforms
        • Financial products
        • Services specifically designed for older adults
        • Government institutions coordinating policies

        Health: Prevention and Chronic Illness

        RAFAM International (Argentina) developed care programs that specialize in sports, active aging, and healthy aging programs for adults and seniors. RAFAM works with partners across 14 countries.

        Diabetes and retinopathy prevention

        TeleDx is a Chilean startup that creates automated retinography diagnostics using artificial intelligence. Their solution has been nationally deployed as a standard public health solution. TeleDX’s solution allows for scalable diabetic retinopathy screenings for patients.

        Home care services

        Bonanza Asistencia provides home care services and has become the gold-standard in Costa Rica with over 8,000 adults over age 60 in their care in recent years.

        Senior real estate & nuda propiedad

        NudaProp focuses on “nuda propiedad” in Uruguay. Or in English, when seniors sell their property but retain the usufruct for the rest of their lives.

        Senior employment: Connections and platforms

        Maturi Brazil’s leading employment network for professionals over 50. They’ve connected close to 140,000 workers with jobs and training.

        Contraticos is similar to Maturi but based out of Costa Rica, providing professional reintegration services in various sectors.

        Someone Somewhere is bridging the gap between older women in Mexico’s indigenous community and dignified work. Through the creation and sale of textiles, Someone Somewhere has provided tools for economic empowerment.

        CONAPE is a leader in institutional solutions. This Dominican Republic-based institution, known as CONAPE (Spanish for Council for the Elderly), is the National Council for the Elderly and works to develop policies and programs focused on inclusion and protection for older adults.

        Silver economy in digital transformation

        Latin American markets and entrepreneurs are developing organizations and programs centered around technology and digital inclusion for silver economy consumers.

        Digital Tablet Distribution

        Plan Ibirapitá — with over 230,000 tablet giveaways to older adults — is another prime example of technology providing seniors with access to bilingual digital literacy courses at no cost.

        Senior Oriented E-Commerce Portal

        Canitas was founded in Mexico by serial entrepreneur Joaquín Suárez. Canitas serves as a one-stop-shop for providers offering healthcare, entertainment, service, and leisure goods to seniors and their families. “We want Canitas to become the national and continental benchmark in the sector,” says Suárez. Canitas will play a central role in our research by connecting us to startups, organizations, and business owners operating in the silver economy.

        Education & empowerment

        Fundación Saldarriaga Concha was founded in Colombia. Fundación Saldarriaga Concha creates opportunities for education, well-being, and income generation for vulnerable groups focused on autonomy and empowering citizens to advocate for public policies that improve the lives of older adults.

        Silver Economy Trends in Latin America

        The IDB shares the following trends about Latin America’s silver economy:

        • Private investment: Most capital for businesses within the silver economy comes from domestic private investment, not international markets.
        • Low internationalization: Few companies have been able to scale out of their home countries, suggesting high growth potential for companies that can expand — a clear indicator of high-growth sectors in Latin America.
        • Slow legislation: Healthcare, job market, and housing legislation is very complex in Latin America, preventing the silver economy from growing at faster rates.
        • Digital & gender inclusivity: As the silver economy grows, there is a greater focus on developing programs for women, who statistically still shoulder the largest burden of unpaid caregiving work.

        The silver economy as an economic opportunity

        Besides providing services that are increasingly in demand, by 2030, newly considered adults 60 and over will modify how goods and services are purchased in Latin America. Representing an opportunity for companies to serve this new market by:

        • Creating training programs for professional caregivers
        • Developing senior-focused financial products (i.e., Savings, Insurance, Investments)
        • Helping transform the Latin American housing market
        • Bridging stakeholders between startups, universities, and government entities to scale ideas and solutions

        Latin America Goods and Services

        Over the next decade, companies and institutions within Latin America will be forced to consider how goods and services can accommodate the region’s fastest-growing market. By diversifying their service offerings and creating sustainable business models that consider a silver-aged consumer, they can become a market leader within:

        • Healthcare
        • Financial services
        • Housing
        • And more

        By putting measures in place to prepare for Latin America’s demographic shift, companies can be part of one of the region’s highest-growth industries in the coming years, firmly establishing themselves among the high-growth sectors in Latin America.