There are multiple reasons why it’s an excellent idea to invest in México. Aside from the conversion of the dollar to Mexican pesos and the low cost of labor, México has a network of 12 Free Trade Agreements with 46 different countries. Among these treaties the most famous one is the North American Free Trade Agreement or NAFTA (TLCAN in spanish) that allows the movement of goods through the three North American countries. Soon NAFTA will be replaced by the US-México-Canada Treaty or USMCA (T-MEC in spanish) which is a renewed version of NAFTA and will bring more economic prosperity to the industry Manufacturing and exporting.
This is why this 2020 we keep you at the forefront and present you with the five best places in México, aside from México City (CDMX), to invest, due to its industrial and manufacturing growth potential in the coming years.
Querétaro
In the study “Perspectives of Senior Management in México 2019” carried out by the KPMG global network, where 933 directors and senior executives of national companies participated, Querétaro came out as number 1 preferred entity to Invest and expand operations. Querétaro, apart from being next to México City (which allows access to the largest market in the country), is positioned in the “Bajío” region which projects exponential business growth in the coming years due to its proximity with other developing states of great economic power. These qualities help input sales, strategic alliances, and close collaboration that ultimately strengthen entrepreneurs.
Nuevo León
Photo by Jose Ramirez on Unsplash
For decades, México City remained unquestionably the first place in manufacturing in México, however in 2019 Nuevo León dethroned the capital to position itself as the first place. The three main industries of Nuevo León, to which 52.9% of the total state revenue is attributed, includes; transport equipment (which has grown 14.1% in the last six years), basic metals, and food. These three together with other various industries achieved a total higher than $ 44 billion in revenue in 2019. There’s no doubt the economy of Nuevo León has grown to the point of reaching a competition level comparable to the country’s capital and there’s no better time to invest. Other strong and growing manufacturing industries in Nuevo León include paper, plastic and rubber, beverages, tobacco, printing, leather, fur, and substitute materials for the latter two.
Ciudad Juárez, Chihuahua
Photo of Cd. Juárez by ©Luis Pegut
Ciudad Juárez, belonging to the state of Chihuahua, has a great geographic advantage as it borders two different states in the US; New Mexico and Texas. The close proximity to the city of El Paso, Tx., has led both cities to form an inseparable and unique binational community that boosts economic relations between the two cities and benefits businesses in both sides of the border. It’s worth mentioning that both Juárez and El Paso have great hotel availability and modern business centers with Coworking spaces and individual offices giving mobility, stability, and tranquility to executives who come from outside.
We think it might interest you: 7 reasons to invest in Juárez-El Paso
In 2019, China invested a total of 2 million dollars in Chihuahua’s infrastructure and foreign investment is projected to grow even more in 2020. According to Toby Spoon, Vice- President of the TECMA group, it’s believed Chinese companies will soon begin to increase their investment in Chihuahua. This is because production costs in China are almost on par with México’s and they know it's a good idea to take advantage of the free trade agreements that makes exporting to the US not only easier and faster but also at a lower cost. All this, together with binational business acceleration programs, make Ciudad Juárez an optimal place to invest.
Guanajuato
Photo by Rogelio Estrada @roystradar
Guanajuato, mostly known for its tourism, has grown exponentially in its industrial capacity within recent years. The state government is considering investing heavily in infrastructure and the creation of platforms to accelerate industry growth through technology and innovation. That’s why the construction of six new industrial parks has been carried out through the Japanese construction company “Lintel” who expresses great optimism for economic growth within the region simply because of the great interest Asian companies have in it. In the same survey “Top Management Perspectives in México”, mentioned earlier in this article, it was announced that Guanajuato is the second most preferred entity by national entrepreneurs to invest. Guanajuato is also at the forefront of education with 80 higher education institutions and 39 research and technology centers allowing access to highly educated and specialized workforce. All this and more has strongly attracted foreign interest.
Tijuana Baja California.
Photo by Barbara Zandoval on Unsplash
A 45-minute drive south from San Diego, California will get you to the city of Tijuana, Baja California, Mex. Like Ciudad Juárez, this city is known for being one of the most important communication points on the border and it's also located in a binational megaregion called Cali-Baja. Its proximity to the sea and the state of California allows businesses to import and export supplies to the US with ease. It also has a wide range of suppliers and a competitive workforce that, according to the Tijuana ED organization, can help reduce operation costs by 40% to 60%. Tijuana has had more than 50 years of experience competing in the manufacturing market which led to the development of human capital and the creation of modern industrial parks. This has ultimately led them to become one of the most productive regions in México. At the beginning of 2019, 12 new prospects were being contemplated due to the great interest Asian companies have demonstrated in moving their operations here. World-class companies such as Toyota, Samsung and Plantronics are located in Tijuana, which is undoubtedly a city with great economic stability and continuous growth.
Since now you know where to begin, what are you waiting for to start the decade at full power and expand operations?
