In brief 2021 Authorized Version: June 25, 2021
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MEXICO in brief 2021 AMPIP, your best partner for your site selection project in Mexico® Authorized Version: June 25, 2021
Mexico and the USA share a Mexico has a common border of around 2,000 miles (54 border crossing). strategic location, bordering the USA, and with direct 156 miles border with Belize access to Central (1 border crossing). and South America. Access to two oceans with almost 6 thousand miles of coastline. North 596 miles border with Asia Europe America Guatemala (8 border crossing). Africa South 14 largest country with 1,864 miles from end to end th America 14 country with the longest coastline. th Source: CIA World Factbook, Ministry of Communications and Transportation of Mexico (2020)
Mexico is the 3rd country Mexico has over 80,000 miles of with the most airports highways and trade routes, facilitating worldwide. the connectivity for logistics and market access. Mexico is the 3 rd country with the From Mexico to any point in the USA, most railroads in Latin transportation of manufactured goods takes America. about 24 hours, lowering time delivery, risks and costs, besides the possibility of better monitoring the manufacturing process, from Mexico is the 2 nd country with the across the border. most roads in Latin America. Source: CIA World Factbook, Ministry of Communications and Transportation of Mexico, INEGI (2020)
Mexico has preferential access to around 50 markets, thanks to 14 Free Trade Agreements (FTAs) and 9 Economic Complementation Agreements and Partial Scope Agreements. USMCA Bilateral FTAs 32 Agreements for USA Bolivia the Promotion and Canada Costa Rica Reciprocal Protection EFTA Colombia of Investments Iceland Nicaragua Liechtenstein Chile (APPRIs), with 33 European Union Norway countries Israel Switzerland Uruguay Japan Peru Preferential Agreements Panama Argentina Central America United Kingdom Brazil CPTPP Costa Rica Australia Paraguay El Salvador Brunei Ecuador Guatemala Canada Honduras Chile Nicaragua Japan Pending FTAs Malaysia Turkey Pacific Alliance New Zealand Jordan Colombia Peru Chile Singapore Peru Vietnam Source: Ministry of Economy of Mexico (2021)
Mexico exports high added value products. Mexico ranks among the top 15 exporters in the world, with 418 billion USD in 2020. Mexico: exports by state, 2020 Million USD Low Complexity High Complexity More than 30 1.29 ECI From 10 to 30 From 1 to 10 Economic Complexity Index (ECI): Less than 1 Mexico ranks 21th of 157 countries, and has position 1 among Latin American countries. Source: INEGI (2020) Source: Observatory of Economic Complexity, 2019
Mexico has long welcomed foreign investment as a way of expanding and diversifying its economy. FDI flows in the last 5 to 6 years have remained between 30 and 35 billion USD. By 2020, total FDI was 29 billion USD. More than 47% of Mexico’s inward FDI has been channeled to advanced manufacturing industries, such as automotive, spare parts, electronics, aerospace, pharmaceutical, e-commerce, and medical devices, among others.
Mexico is among the top 10 Nearshoring potential most attractive countries for FDI. In the Americas, Mexico is the highest ranking (Billion USD) country, positioned 15th, overall. Source: World Investment Report (2020) Source: Savills (2020) (x) = 2019 ranking Competitive costs and market access are some of the main reasons why Mexico is an attractive nearshoring destination for global companies looking for new expansions.
There is a high concentration of R&D Mexico: centers in six contiguous entities, forming a kind of Mexican Corridor R&D Ecosystem by sector Northwest Region: 28 Northeast Region: 47 Western Region: 40 South – Southeast Center Region: 35 Region: 100 Con tecnología de Bing © HERE, MSFT, Microsoft, Wikipedia Source: Towards a knowledge economy, Centers and the R&D Ecosystem in Mexico (2018) In Mexico, industrial parks, clusters and R&D centers, work closely to carry out projects focused on innovation, for productive purposes.
Mexico’s clusters in competitiveness industrial innovation NUMBER OF CLUSTERS NUMBER OF CLUSTERS TOTAL NUMBER OF TOPIC AREA SPECIALISED IN THE TOPIC COVERING IT AS A CLUSTERS ADDRESSING AREA SECONDARY TOPIC AREA THE TOPIC AREA Research, development 12 23 32 (+4 networks) and technology Digital factories 9 20 29 Automation, integration, 2 26 28 movement, and control Energy (industrial - 8 8 efficiency and storage) Industrial supply 16 10 26 Source: Mexico’s clusters in competitiveness industrial innovation (2018) There are at least 35 competitiveness clusters and 4 networks, distributed among 16 states in Mexico, that can be organized and classified according to industry 4.0 parameters.
Mexico has a skilled and competitive labor force. In the past 10 years, Mexico’s unemployment rate has been lower than 6%. Labour market conditions continue to strengthen. As of March 2021, the unemployment rate was registered at 4.4%. Around 43% of the population is under 25 years old and the average age is 27 years.
In the past two decades and thanks to Mexico’s Supply chains integration to the North American market through USMCA, the country has been able to in Mexico become an important player in the Global Value Chains (GVC). Some Success Stories: TRENDS: • 31 OEMs, light and heavy vehicles automakers in the country. - Follow-the-sun systems. • 600 Tier Ones that supply and support the OEM with regional - Automation. content: Auto parts cross the border 8 times before - Process digitalisation. completing a vehicle. - Improve human capital • The Lear jet 85 is developed in Canada (Montreal), in assembly lines. manufactured in Mexico (Queretaro) and assembled in the United States (Wichita).
Aerospace Medical Devices …has access to a potential high-tech …is the main exporter of devices that export market, as a member of the use alpha, beta or gamma radiation in Wassenaar Agreement. Latin America. Electronic Automotive Pharmaceutical …is the 8th largest producer …is the 7th largest vehicle producer worldwide …is the 2nd largest pharmaceutical market of electronics in the world. and 3rd largest exporter globally. in Latin America and the 12th in the world. Processed Food …is home to 9 of the 10 food Renewable Energy …has more than 226 power plants Mexico is industry global companies with the highest revenue. for the generation of electric power through renewable sources. leader in key sectors Telecommunication …is the 2nd country in Latin America with the fastest internet speed. Construction Furniture …is one of the largest cement …is the 2nd largest furniture producer in Latin America. supplier of the United States. Electricity Metal Mechanic Biotechnology …is the 2nd producer of the …is among the 10 main exporters of …is the 2nd country in Latin America electricity sector in Latin America. machinery, appliances and mechanical with the highest number of patent devices. applications.
In this context, Industrial Parks in Mexico are… Competitive world class industrial areas ü Plug & Play Industrial parks. with all the services and security, to ü Class A buildings for leasing. facilitate the operation of global ü Inventory and Built-to-Suit options. manufacturers and distribution centers. ü Sustainability and Security. Next Generation of The road map identifies trends Smart and Sustainable and defines actions to forward Industrial Parks industrial parks to the next level The path to 2030
AMPIP in numbers +350 Industrial +3,500 Tenants +38 million sqm Parks manufacturing & of constructed in 24 states logistics buildings Tenants’ country of origin, within AMPIP’s Industrial Parks 62% foreign origin
The leading business organization representing developers, owners and investors of industrial parks in Mexico. AMPIP promotes Best Purpose (MTP) Practices concerning quality and ESG (Environment, Social To make possible the evolution and Governance). towards a sustainable industrial infrastructure.
About Mexico, legal framework, costs, infrastructure, clusters, and more customized data, necessary for the site selection Information process. How can we assist your From the travel planning, guidance company? prospection during the visits, contact with different trips players, to the end of the trip, at no organization cost. We provide… Quick access to data on real estate and availability buildings (Inventory or Built-to-Suit), tracking for according to the requirements of the industrial spaces project.
Final remarks In summary, Mexico… • is a competitive country for FDI; • provides a unique location, infrastructure, talent in human resources and competitive costs for manufacturing and logistics global companies; • is a key player in the Global Value Chains; • represents a strategic option to mitigate the distance and political risk, in relation to continuity of supply chains and commercial differences among countries.
is your best partner for your site selection project in MEXICO
Industrial developers members of Advance Real Estate FIBRA UNO PGIM Real Estate AeroTech Industrial Park FIDECIX, Gov´t State of Tlaxcala PIMSA Industrial Developers Alveo Kapital FIDEPAR, Gov´t State of Mexico Prologis American Industries FINSA Prosperity Industrial Amistad Industrial Developers GP Desarrollos Puerta del Norte Industrial Park Artha Capital Grupo Nelson PyME Industrial Park ATISA Industrial Hines ROCA Desarrollos Atitalaquia Industrial Park IAMSA Development group San Jorge Industrial Park Bermudez Industrial Park Intermex Industrial Parks San Julian Industrial Park BTS Development Interpuerto Monterrey SEDECO, Gov´t State of Durango Cactus Valley Industrial Parks Lintel SEZAC, Gov´t State of Zacatecas Calafia Industrial Park Logistik STIVA Central Business Park Merida Marabis Group Terra Regia CIESA Maran Industrial Park Terrafina COFOIN, Gov´t State of Hidalgo Millennium Industrial Park Tetakawi Corporate Properties Ministry of Economy, Gov´t State of Puebla VESTA Davisa Development Corporation MS Group VYNMSA El Florido Industrial Park NICOYA Investments Walton Street Capital Mexico Exeter Property Group O'Donnell WTC Industrial FIBRA Macquarie Opcion Industrial Park Yucatan Industrial Parks FIBRA MTY Oradel
Claudia Avila Connelly Executive Director + 52 (55) 2623 2216 cavila@ampip.org.mx @ClaudiaAvilaC Claudia Esteves Cano FDI Promotion Consultant www.ampip.org.mx + 52 (55) 4566 3233 cesteves@ampip.org.mx @cestevesc @AMPIP Mexican Association of Industrial Parks © 2021 Mexico. All rights reserved. The images, logos and content in this presentation can not be reproduced without prior authorization. Unauthorized reproduction is prohibited and is subject to the Industrial Property Law.
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