There are many reasons why so many companies choose Mexico as a manufacturing location, and in this blog post, we will highlight some of the advantages that make Mexico such an attractive option. The Mexican processing sector specializes in assembling various components into three-quarter or finished products for export, known as maquiladoras.
Mexico has the potential to become one of the main manufacturing points worldwide since it has: a solid industrial base with skilled labor, proximity to the United States, as well as a gateway to South America, it also has more than 46 free trade agreements, which make it an ideal place for the production and transportation of goods. In addition, it has an excellent infrastructure that can be easily improved with foreign investment.
Labor in Mexico
The main reason why companies are increasingly manufacturing in Mexico is because of Mexico’s highly skilled labor force and competitive labor costs. Mexico has a large working-age population, which gives the country excellent human capital advantages. Each year, Mexican universities and schools graduate 120,000 engineering students. Companies such as Audio, for example, has established its own training center in Mexico. This is attracting more and more foreign companies to the country and, at the same time, expanding the manufacturing sector.
Industries of Mexico
Mexico has a wide variety of industries and, therefore, the potential for synergy effects. In addition to traditional export products, such as oil and agricultural products, many other industries have learned to appreciate Mexico as a production location. The automotive and supplier industry has become an important pillar of Mexico, with the United States as an export destination; one out of every two cars manufactured in Mexico is destined for the U.S. market. There is also a growing demand for aeronautical technology products, whose exports are expected to double in the coming years. This diversity of companies and industries brings advantages and potential partners for supply chains and synergy effects.
Infrastructure in Mexico
Mexico’s infrastructure allows access to Canada, South America, and the United States. With a network of more than 1,800 airports (the third largest in the world), it allows goods to be transported quickly. In addition, the rail network also plays an increasingly important role, with a continuous connection of freight trains from Mexico to Canada via the US.
Political Benefits
In addition to the T-MEC, Mexico has 45 other free trade agreements around the world that greatly simplify trade access to the United States and Canada. These agreements offer beneficial cross-border trade with low trade uncertainty, tax exemptions, and tariff concessions.
VYNMSA is one of the leading industrial real estate developers in Mexico. We have the expertise to develop your Build To Suit or custom projects. We actively collaborate with industrial real estate brokers as business partners.
Contact us and discover why VYNMSA is your best industrial real estate business partner in Mexico.
