Mexico is a place that offers significant advantages
for companies that are looking for a country to expand and/or to establish a
base of operations. Here you can find 7 concise reasons to invest in this
country:
1. Affordable
workforce
The average compensation cost in manufacturing per
employee is 6.4 dollars/hour. With this amount, the cost in Mexico is lower
than in Taiwan, Brazil, Argentina and Korea.
2. Qualified
labor force
According to UNESCO’s data, there are 18% more
graduates in manufacturing, engineering and construction per capita than in the
USA. Besides, in 2012 there were 102 students graduated in engineering from
Mexican institutions.
3. Young
population
The population in working age is 64% of the total
population, which represents around 70 million people. It is estimated that it
will continue over 60% for the next two decades.
4. Tax incentives
Many state governments are pursuing foreign investment
through state tax incentives. The states with more incentives are Hidalgo, San
Luis Potosí, Querétaro and Coahuila.
5. Industry
clusters
These are the main industry clusters by region:
•
Aerospace:
o
North:
Baja California, Nuevo Leon, Sonora and Chihuahua
o
Queretaro
•
Automotive:
o
North:
Baja California, Chihuahua, Sonora, Coahuila, Nuevo Leon
o
Center:
Aguascalientes, Jalisco, Guanajuato, San Luis Potosi, Mexico state, Morelos,
Puebla, Hidalgo and Queretaro
•
Pharmaceutical:
o
Center:
DF, Jalisco, Mexico state, Puebla
•
Processed
foods:
o
Center:
Mexico state, Jalisco, DF, Puebla and Veracruz
•
Household
appliances:
o
North:
Baja California, Chihuahua, Coahuila, Nuevo Leon, Sonora and Tamaulipas
o
Center:
Mexico state and Queretaro
•
Electronics:
o
North:
Baja California, Chihuahua, Coahuila, Nuevo Leon, Sonora and Tamaulipas
o
Center:
Jalisco and Mexico state
6. Infrastructure
Mexico
has road and railroad networks that communicate the interior of the country,
the sea ports on the Pacific and Atlantic ocean, and the north/south borders
making connections between the USA, Guatemala and Belize. There are:
•
54
crossings in the USA-Mexico border
•
76
airports
•
117
sea ports
•
27
thousand km of railroads
•
133
thousand km of roads
7. Export of
finished goods
Mexico is an ideal place for the transformation of raw
materials and export of finished goods. The 2 main reasons are:
•
Mexico
has many natural resources. The ecosystem diversity allows to produce a wide
variety of agricultural products, it has the potential to generate great energy
(including electric, wind, hydroelectric and geothermal) and the country is
known for its mineral production (specially silver -2º largest producer in the
world- , copper, bismuth, arsenic, lead and zinc).
•
In
case the investor wants to import raw materials from other countries but to use
the geographical connections of Mexico and its cheap and qualified labor force,
the government promotes the export of its finished goods: There are programs
that allow the temporary import of goods (including machinery, tools and raw
materials) with no customs duty nor VAT that will be exported at the end as
finished goods. They also provide a preferential tax treatment.
Thank you for reading, you are
also welcome to visit our web page www.profectus.mx