In recent years, the Bajio region has been the second most important economic base after Mexico City, about 90% of the Asian companies that have recently entered Mexico in the last 10 years have expanded to the Bajio area.
What is the Bajio?
Bajio means basin, and the entire area of the Mexican Altiplano basin in central Mexico is called the Bajio region, which lies at an altitude of 1500-1800 m, is the main agricultural area of Mexico, blessed with fertile soils and moderate rainfall in a warm climate. Different authors differ on the range of the Baio area, but in this article we will present the six states of Aguascalientes, Jalisco, Guanajuato, Querétaro, San Luis Potosí and Zacatecas as the Bajio area.
Bajio’s economic advantage
Located on the north side of Mexico City, the Bajio has convenient transportation to the metropolitan area and has a well-developed infrastructure. Due to the Central Plateau basin, it has a stable climate throughout the year. Guanajuato is located in the Bajio region, which is the state with the second-largest number of universities after Mexico City, so the educational level of the entire region is high. The average age of the state is around 26 years old, so its labor force is young.
Most of the Asian companies that are expanding or relocating to Mexico are currently related to the automotive area, but it is said that close to 90% of the new companies in recent years are established in the Bajio area.
Characteristics of each state in the Bajio region
It is the second-smallest state in Mexico, bordering Zacatecas to the north and Jalisco to the south. The automotive industry has been active since Nissan established an automobile factory about 20 years ago, the wine industry is also important within the region.
Despite not being the capital, Leon, which has the largest population in the state, is an area where the automotive industry is concentrated, with factories of major Japanese automakers such as Honda, Toyota, and Mazda. In addition, it is also famous for the production and sale of leather products.
Guadalajara, the capital of the state of Jalisco, is the second-largest city in Mexico and a World Heritage Site. Known as the birthplace of tequila and mariachi, the tourism industry is currently in a prosperous state.
Here are concentrated advanced industries such as automotive, aerospace, information and communication, electronic equipment, biotechnology and health care, it is also known as “The Silicon Valley of Mexico”.
A World Heritage Site by cultural standards such as the model of colonial cities, Queretaro is a state with a high location advantage in the Bajio. The main industries are automotive and aeronautics.
- San Luis Potosi
Located almost in the center of Mexico, it is a connection point for Mexico City and the United States. Its main industries are the automotive, mining, and tourism industries, which take advantage of the state’s abundant biodiversity.
Known as one of the largest silver-producing regions since colonial times, it is a state with a thriving mining industry. In recent years, it has focused on the automotive industry and the active attraction of foreign companies.
Industrial zone in the Bajio
Mexico, the world’s main production base, has 260 industrial complexes, counting only those that are members of the association. Most of them are high-level industrial complexes that meet international standards, with infrastructure that includes water and sewage, stormwater drainage, electricity, natural gas, lighting, security, waste collection, and other ancillary facilities.
Given that the destination of exports was the United States prior to the conclusion of NAFTA, approximately half of the industrial complex consolidation areas are located in the states bordering the United States. Since the beginning of this century, the number of industrial complexes has increased rapidly in the Bajio area, and now more than 20% of the total is located in this area.
In many cases, industrial real estate companies, such as VYNMSA, develop and operate industrial complexes, ready-to-house manufacturing companies with industrial buildings ready to start operations.
VYNMSA is an active member of AMPIP (Asociación Mexicana De Parques Industriales Privados), a civil association that promotes the interests of industrial parks in Mexico; it is comprised of private real estate developers, FIBRAs, among others; in addition, AMPIP provides information about Mexico and the industrial real estate market to domestic and foreign companies with expansion and Foreign Direct Investment (FDI) plans.
The fact that Mexico is one of the world’s leading manufacturing bases is reflected in the number and size of industrial zones. Most factories are in operation 24 hours a day.
Each of the six states that make up the Bajio region has its own characteristics and is an important part of Mexico’s economy. If you have any questions about starting your operations in Mexico, VYNMSA is a leader in industrial real estate development in the country. In addition, we are able to develop your Build To Suit projects; likewise, we actively work with industrial brokers as business partners, we have around 20 inventory buildings ready for immediate occupancy, which adds up to a total space of 1.7 million square feet built in the northeast and bajio region of Mexico.
Contact us and find out why VYNMSA is your best industrial real estate business partner in Mexico.