MX Manufacturing - Central Region
Manufacturing in the Central Mexico region (The Bajio)
The Bajio is made up of the central states of Aguascalientes, Guanajuato, Jalisco, Querétaro, and San Luis Potosí. While a 9-hour drive to the US border, its central location helps manufacturers balance rapid export routes with more competitive costs and labor availability than found in some border states. The states of Puebla and Zacatecas are in the wider Bajio and are an important part of the supply chain value found in this region.
State of Aguascalientes
Aguascalientes is an important manufacturing state of Mexico. Its popularity is driven by major automotive companies including Nissan, Mazda, Honda, GM, Volkswagen, and Infiniti. Automotive suppliers from around the globe are taking a keen interest in exploring manufacturing options in this area. As a result, there are an increasing number of OEM suppliers in the region.
The surrounding areas provide a comfortable living for foreigners. Table wines, aguardiente (liquor created from cane sugar), brandy are other famous products are made here.
Aguascalientes City
The capital city of this state also bears the same name. The average age in Aguascalientes is 24 years old from the most recent data available. It can be said that the labor market in this city is strong enough to support the companies who want to manufacture. There are some industrial parks that are slowly expanding. These parks help to combine production, logistics, and warehousing.
Most of the land in this city is controlled by the government. Instead of lease options of existing buildings, the government encourages manufacturers to purchase land and build their facilities. In other Mexican cities, this is not common.
State of Guanajuato
Guanajuato is located in central Mexico, northwest of Mexico City. The principal economic activity is mining (gold, silver, tin, lead, mercury, copper, and opals). It is also one of the fastest-growing states for manufacturing. Global manufacturers include automotive, textiles, food processing, chemicals, aerospace, IT, and logistics.
León is the state’s largest city with a large number of manufacturers along with Salamanca, Irapuato, Celaya, and Guanajuato City.
Guanajuato City
The capital city of this state bears the same name, Guanajuato. New plants of Honda, Mazda, Volkswagen have enhanced the importance of this city since 2014. It has a strong workforce with 36% of workers employed in secondary industries.
There are 575 international manufacturers with a workforce of close to 620,000 people. An added attraction is their international Airport. This city has relatively easy access to other hubs such as Monterrey and Queretaro which make it an appealing option to foreigners.
Major institutional real estate developers continue to create new industrial parks to accommodate companies of most sizes. The infrastructure of the region is robust. It also has a vibrant culture and interesting history which addes to it’s attraction to foreign investors looking for a Mexican opportinity.
State of Queretaro
Querétaro, one of the smallest states in Mexico, is situated on the Mesa Central. Its relief is divided between mountainous areas in the north and rolling plains and fertile intermontane valleys in the south and west, where most of the population is concentrated in and around Querétaro city. Industrial complexes at the capital and at the city of San Juan del Río produce metal goods, machinery, chemicals, and processed foods, but the service sector (including government and retail trade) accounts for a much larger share of employment.
Queretaro City
Queretaro is the capital city of the state, located 135 miles northwest of Mexico City. It has a desert in the north and tropical rain forests in the south. There is a multiethnic blend of residents in Queretaro and Otomi with Tarascan, Chichimec, and Spanish residents are living here. This city is less dependent on agriculture although it has the richest soil and the ability to produce high-quality vegetables.
Manufacturing is playing a huge part in strengthening the economy with 624 plants and 18 industrial parks in this city along with an international airport. The nearest ports of entry from the Gulf of Mexico are Altamira and Tamps which give a huge advantage to manufacturers. There exist a highly-skilled workforce with a labor turnover rate ranging from 4% to 6%.
A particular focus of the city is on the aerospace industry along with automotive and IT. Bombardier is working efficiently in the region and focusing on strengthening its supply chain. The local government is proactive in supporting foreign business and providing assistance. They encourage engineering and technical schools to remain focused on the industrial sector.
State of Jalisco
Jalisco is a western Mexican state fringing the Pacific Ocean. The state is known for mariachi music and tequila, both of which reportedly originated here. Jalisco’s economy is very diversified. It is a major agricultural producer, has a huge manufacturing base in its capital city, Guadalajara, and plays a major part in Mexico tourism centered on the coastal city of Puerto Vallarta.
Guadaljara
The state’s capital is Mexico’s second-largest city (2009 population: 4,365,000). On the outskirts of the city is an area of industry known as Mexico’s “Silicon Valley” because of its various computer-related factories. The main industries are textiles, furniture, sugar, footwear, petrochemistry, paper, tequila, food, fur, forestry, and mining. The economy strengthening industries are electronics and apparel.
This city is also the main producer of software, electronics, and digital components. A quarter of Mexico’s electronic exports are done through telecom and computer equipment from this city. Manufacturing installations, research laboratories, and even satellite offices of technology giants (General Electric, IBM, Intel, Hewlett-Packard, Siemens, Flextronics, Solectron, SCI Systems, and Oracle) also exist here.
Young talent from the city is continuously flowing into these companies. This city has many technology institutes, educational centers, and 12 technical/ engineering universities. Universidad de Guadalajara, Universidad Panamericana, the Western Institute of Technology and Higher Education, and the Universidad Autónoma de Guadalajara.There is visible social, environmental, and economic transformation occurring in this city due to the focus on education.
State of San Luis Potosí
The state has good transportation networks. The capital, San Luis Potosí city is on a major highway and railroad that connect Piedras Negras in Coahuil to Mexico City via Monterrey in Nuevo León. As with many states, automotive is their primary source of business but machinery fabrication, food production, and textile manufacturing are increasing.
San Luis Potosí City
San Luis Potosí, the capital city of the state of the same name, has a central position in northeast Mexico, between the engineering and manufacturing hubs of Mexico City to the south, Monterrey to the north, and Guanajuato to the west. A part of Mexico’s Bajio region, this strategic location offers manufacturers tremendous access to a concentrated supply chain.
State of Puebla
This state is in the wider Bajio region. It has a diverse economic base supporting industries such as textiles, tourism, agribusiness, storage, medical services, and furniture making. There are many logistics clusters servicing the wider Bajio region as well as exports to North America.
Puebla City
Puebla, the state capital city, is located between Mexico City and Veracruz (the Mexican port city on the Gulf of Mexico coast) and is the fourth largest city. This city has a population of more than 5 million. Puebla has a fairly mild temperature as is situated above 7,000 ft. The economy of the city is dependent on industries like metal mechanics, electronics, food processing, chemicals, and automotive. Puebla has the largest plant assembling Volkswagen outside of Germany. Similarly, Audi’s assembly plant is also based here.
In the Bajio, four hours to the north, new assembly plants of Honda, Mazda, Nissan, BMW, and Daimler are also operating, giving more value to Puebla. This automotive re-emergence is driving automotive supply chain businesses.
State of Zacatecas
This state is in the wider Bajio region and is located northwest of Mexico City. It contains La Quemada archaeological site, a large pre-Columbian settlement with a museum, hilltop pyramid, and columns. The state’s high-altitude capital, also called Zacatecas, is home to the Mina El Edén, an old silver mine with an underground train that passes unique rock formations, displays of mineral deposits, and antique mining machinery.
Zacatecas City
Zacatecas is the capital city of the state and home to many multinational manufacturers participating in both U.S. and Mexico supply chains. It is also in with wider Bajio, located 450 miles southwest of Texas and around 100 miles north of Bajio (which has the largest OEM cluster). There are global manufacturers from all over the world including aerospace, electronics, and automotive.
Zacatecas is also famous for its silver mines dating back to the early 16th century. This city now offers an enthusiastic population with years of manufacturing experience. The infrastructure of the city is improving every passing year. One visible example is the highway system north to the U.S. and south to Mexico City. The state government is also helping in making new routes and improving the existing transportation system.
Shelter companies that provide well-trained, cost-efficient and highly qualified talent for most industries are also found here. With many employments opportunities, engineers, skilled technicians, and professional managers, all are required. As in other regions, local professional and technical colleges have responded by giving various industry specific degrees. An expanded and detailed curriculum has also been prepared for the next generations. Government incentives support students in areas such as engineering.
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