According to Francisco González Díaz,
Chief Executive Officer of ProMéxico, the commercial opening
of the mexican market since the signature of North American
Free Trade Agreement (NAFTA) in 1992, the changes in the macroeconomic
policies in the country and the amendment to the Foreign Investment
Law were some determining factors that encouraged the creation of
more industrial parks, which have played an important role in
Mexico’s integration to global value chains as they collaborate
for the establishment of new operations in our country.
Industrial parks in mexican land
The CEO of ProMéxico noted there are some country´s leader
States that are developing industrial parks in Mexico,
which stands out for its infrastructure, skilled labour
force, geographical location and provision levels,
as you can see them on the map.
Mexico is a key supplier for the USA in sectors such as
automotive, aerospace, electronics, medical devices, to name a few.
“In this regard and as a relevant manufacturing country,
industrial parks get a major meaning, as they are the center
of operations for all manufacturing companies operating
in Mexico”, said in interview the Chief Executive
Officer of ProMéxico, Francisco González Díaz.
The CEO emphasized, that the industrial parks developed in Mexico,
have achieved to comply the requirements of foreign investors
that seek for a location with easy access to consumers, with
talent available (qualified and diverse labour force) and that
provides competitive full costs (labour force, transportation,
services and real estate); with suppliers presence and efficient
infrastructure (roads, ports, house-hold schools, hospitals,
industrial areas and hotels); with geographic location (connectivity
and logistics facility) and with a business-friendly environment
(stable economy, reliable legal system, political stability,
swiftness in procedures and regulations, tax and patrimonial security).
“This has allowed that industrial parks businessmen, mainly from
Mexican Association of Industrial Parks (AMPIP), more easily foster
Mexico as an investment destination.” He said that an industrial
park in Mexico has the required permits to operate industrial
plants and distribution centers; offers in one place and in an
integrated way, legal, administrative and operational certainty,
promoting efficiency in supply chains, reducing costs and risks
of assets and inventories; it operates under internal procedure
and has an administration that coordinates security, the proper
functioning of infrastructure, promotion of real estate and general
management of procedures and permits before authorities. Likewise,
he added that these industrial developments are relevant in the
value chain (production) and supply chain (distribution centers).
“Mexico is characterized for having world-class industrial parks
with international certifications one of them Authorized Economic
Operator Standard (AEO), harmonized standard to the Customs-Trade
Partnership Against Terrorism (C-TPAT) in United States that allows
to certify quality standards and high level security, features that
a country the size of ours in manufacturing should have and which
makes it an attractive for investment,” declared Francisco González Díaz.
In fact, ProMéxico collaborates with AMPIP to attract investment
to our country, because from the perspective of the officer,
industrial parks are part of the competitive advantages of Mexico
because they offer world-class infrastructure, “that is why we
should have no qualms about its promotion.”
It is worth mentioning, that companies currently settle in industrial
parks in Mexico are manufacturing, logistics and distribution
multinationals mainly. Even the CEO of ProMéxico reported that the
sectors where increased higher rates of growth can be seen are
automotive and transportation, aerospace, agri-food, logistics and
distribution, as well as electrical/electronic.
“Currently, companies that have productive processes in our country
do so with a long-term plan, they seek for efficiency, just-in-time
and just-in-sequence processes. This has generated distribution
centers, mainly in automotive, aerospace, medical equipment, chemical,
pharmaceutical and food processed industries. The clusters in this
sense mean a universe of companies working closely together and that
given its location and proximity favor the reduction in travel times
and production costs.The regions that have a development in certain
sector, widen its coverage capacity and maintain a symbiotic relationship
that encourages growth in diverse entities,” explained Francisco González Díaz,
who has extensive experience in the promotion of Mexico abroad,
occupying several posts from 2002 to date related to that endeavor,
among them Ambassador of Mexico to the Federal Republic of Germany.
Competitive factors: infrastructure and logistics
The CEO of ProMéxico declared that in a country with manufacturing vocation
as Mexico, is fundamental to have an adequate communications and transport
infrastructure not only to take out the merchandise for the storehouse and
manufacturing locations, but to transport it through sea, air and land trunk
routes in the country to their final destination. “An industrial park without
the appropriate routes will not have the intended effect.”
In this context he stated, that one of the ways to encourage the development
of Mexico is through the creation of infrastructure, as this generate jobs
and trigger the country´s economic growth. “Without a doubt, a country that
has an adequate level of infrastructure lowers the cost of transport of the
merchandise, becoming more competitive. This statement can be seen in some
of the northern and center states”.
He indicated that, investment in this area is a strategic issue for federal
government, as established by the National Infrastructure Program 2014-2018,
focused on generating infrastructure, transport logistics platform and modern
communications to promote greater competitiveness, productivity and
economic and social development.
Francisco González Díaz added that, the infrastructure generated since
the celebration of NAFTA in the mid-nineties has resulted in the creation
of industrial buildings, warehouses, ports, railways and roads, which
have boosted activities, related to supply chains and, therefore, has
improved competitiveness, connectivity and logistics facility of our country.
“Multimodal centers where diverse means of transport favored alternatives
to move cargo more efficiently. Modernization, expansion and construction
of new airports provide the possibility not only to expand capacity but
to become an important logistic node.”
On highways and ports matters, it stands out that the Transístmico Corridor,
which connects the Gulf of Mexico to the Pacific, reduces distances,
costs and open new channels that favor the development of the region,
while the expansion of the four main ports in Mexico and the generation
of new ports followed by the need to meet the demand for more places
to introduce and export cargo in the country.
He mentioned that another important issue is the phenomenon of ‘reshoring’
that derived from an increased in production and in manufacturing jobs in
the USA, industries that were previously installed in China as a matter
of costs have returned to North America, which generates higher
foreign direct investment flows to Mexico.
The CEO of ProMéxico emphasized that this public organism -that in june
2017 celebrates a decade of existence-, plays an important role in
attracting foreign direct investment into Mexico, as well as in the
formation of clusters by generating value chains in procurement,
technology and training of professionals.
