21/05/2024
Manufacturing activities position Mexico as a key player in the global industrial market, driving growth in the demand for industrial buildings for lease construction.
The demand for industrial buildings for lease in Mexico has recently surged. Many global companies, previously established in Asia, have relocated their manufacturing activities to Mexico to avoid logistics interruptions.
The closures and restrictions in airports and ports during 2020 accelerated the nearshoring trend, from which the Mexican economy is currently benefiting.
2024 is emerging as a year in which industrial real estate developers in Mexico are betting on offering new options to meet the rising demand for space. This occurs while availability in the main industrial markets reaches less than 2% of the existing infrastructure, and manufacturing remains vital for sustaining growth.
The manufacturing and the light industry can be considered the same, because of the differentiation from the primary sector, responsible for the extraction and processing of raw materials.
In the contemporary industrial context, this term refers to transforming raw materials into finished goods on a large scale.
It requires the use of machines and the consumption of energy, rather than manual labor.
Manufacturing in Mexico retains significant growth potential and is poised to supply the nation with ample resources by attracting foreign investments.
Humberto Martinez Cantu, President of the National Council of the Maquiladora and Export Manufacturing Industry (Index), explained to Forbes Mexico that this sector could potentially draw investments totaling up to US $100,000 million.
Manufacturing as a Driving Force for Economic Growth
According to Martinez Cantu, the Mexican industry must capitalize on the current business environment to maintain the relevance that manufacturing has earned over decades.
“For decades, the export manufacturing industry has been one of the main economic drivers of Mexico,” stated the businessman, who explained that only for the current year, the council expects investments of over US $9,000 million.
Manufacturing ranks among the primary activities in several of Mexico’s main industrial markets, such as Monterrey, Tijuana, and Guanajuato, largely due to the numerous foreign enterprises operating in the automotive and home appliances sectors.
For instance, the recent announcement of Tesla’s upcoming electric car factory has prompted Elon Musk, the company’s CEO, to encourage auto parts suppliers from various countries to begin operations in Mexico.
The move ensures access to a robust supply chain, which could drive the demand for industrial buildings for lease in Mexico.
The Monterrey industrial market already hosts various electronic devices and home appliances factories, such as:
- Whirlpool
- LG
- KIA
- Hyundai
Manufacturing is also growing in Guanajuato, a state with a vast range of suppliers for automotive assemblers across Mexico. Guanajuato is crucial for the supply chain that supports the activities of Nissan, Ford, Volkswagen, and General Motors assemblers in Aguascalientes, the State of Mexico, Baja California, and Puebla.
Manufacturing activities are critical to maintaining the country’s relevance in the international economy. To achieve this, the work of real estate developers is key in supplying industrial buildings for lease across Mexican regions.
In a growing market for manufacturing and industrial activities in Mexico, Frontier Industrial offers land for sale and industrial buildings for lease in Mexico’s most important areas. If your enterprise looks to relocate or enhance activities in Mexico, feel free to contact us and develop your project with us.
