To a homebuyer, curb appeal can be a deal-breaker. It’s the same for prospective industrial users.

      While a would-be manufacturer doesn’t place as much emphasis on aesthetics as does a homebuyer, the manufacturer still must consider more than cost per square-foot when determining where to locate a manufacturing plant. Some of the major components that must be evaluated include:

      •Logistics – How hard or easy will it be to get raw material to the plant and finished product to market?

      •Labor – Are there enough skilled and unskilled workers in the area?

      •Transportation – Are area roads and highways adequate? If air or rail is needed, is it available in quality? Will the availability of seaports be a determinant?

      •Utilities – Many industrial users require natural gas. Most require trash collection and all require water, sewer and electricity. Is there protection in place to guarantee uninterrupted delivery of these utilities?

      •Building construction – Is there someone or some company that can deliver a quality building?

      Fortunately, Mexico has several modern industrial parks that cater to world-class manufacturers and can guarantee the above services, while adding amenities like security, housing, recycling, daycare and medical clinics, to name a few.

History

      The first industrial park in Mexico was established in 1968 by Jaime Bermúdez in Ciudad Juárez and his effort to fill the park with tenants is often cited as a major factor in the emergence of the maquila industry. The maquila program was established in 1965 and Bermúdez was among the first to realize its impact. He developed the first master-planned American-style industrial park in Mexico and today the Antonio J. Bermúdez Industrial Park has the largest single concentration of major foreign manufacturers producing and assembling products for export.

      The first industrial parks were established near the U.S. border, but as Mexico modernized its highways and improved rail and air service, proximity to the border became less important. Industrial parks today can be found throughout Mexico, from Chihuahua to Yucatán. And just as the maquila industry is evolving, so are industrial parks.

      Mexico’s maquila industry has evolved through three stages: In the early years the industry consisting primarily of simple assembly. Over time the industry grew to include higher-skill processes that required technology. Today, the industry is in its third stage, a stage that is characterized by high levels of engineering, research and design. General Motors was the first major maquila to build a technology center in Mexico. Today, several other multinational companies have established technology or research and development centers in Mexico.

      Industrial parks are also transitioning. Today’s industrial parks are likely to include a mix of residential and commercial uses in the master plan. One industrial park, the Logistik FTZ in San Luis Potosí, recently became the first operator of a Mexican Free Trade Zone. A recent change in Mexico law enabled Grupo Empresarial Logistik to establish the Free Trade Zone, which includes a customs office that is staffed 24/7.

      The benefits of a Free Trade Zone include:

      •Merchandise can be transformed, modifying its tariff fraction or non tariff regulations, according to the situation with the consequent benefit.

      •There are no tariffs to foreign trade, VAT and compensatory tariffs while they are placed into the Strategic FTZ and its use has not been decided.

      •Merchandise can be transferred from one company to another into the Free Trade Zone.

      Elsewhere, banks, daycare centers, playgrounds, schools, churches and medical clinics are frequently part of new parks. Many park tenants are attracted by the shelter program. Most industrial park developers offer to “shelter” customers from bureaucratic and cultural regulations. The park owner handles all administration for a fee, freeing the customer to concentrate on manufacturing.

      There is also a movement to make industrial parks more environmentally-sound. The Building Owners and Managers Association (BOMA) International is calling on real estate owners and property managers to take an active role in implementing responsible energy consumption practices.

      Real estate management teams, in conjunction with building occupants, can have a positive impact on the environment through a strong commitment to implement a number of green buildings initiatives such as current government programs; management of hazardous waste and environmental risks; establishment of emergency response, recycling, water and energy conservation plans; ensuring healthy indoor air quality; implementation of green purchasing practices; and the encouragement of public transportation and carpooling programs, stated BOMA’s green buildings policy.

      “The policy is a clear indicator that BOMA International is committed to taking a leadership position in advocating environmentally-friendly building initiatives,” said BOMA International Chairman and Chief Elected Officer David W. Hewett. “Commercial office buildings are significant consumers of energy resources, but we can greatly reduce their environmental impact through the implementation of green building practices.”

      While BOMA has been a catalyst in energy efficiency efforts, the policy calls for the association to increase that role through educating its members on green buildings, monitoring and advocating in the legislative, regulatory and codes arena on green buildings issues, promoting environmental stewardship, and recognizing excellence.

      Founded in 1907, the Building Owners and Managers Association (BOMA) International is a dynamic international federation of more than 100 local associations. The 19,000-plus members of BOMA International own or manage more than 9 billion square feet of downtown and suburban commercial properties and facilities in North America and abroad. BOMA’s mission is to enhance the human, intellectual and physical assets of the commercial real estate industry through advocacy, education, research, standards and information.

Parks certification

      Mexican law is clear about what is considered an industrial park. The certification is bestowed by AMPIP, the Mexican Association of Industrial Parks, and involves an on-site inspection as well as a review of certain documentation. The certification ensures tenants that the park meets government standards for infrastructure: power, water, sewer, street width, lighting, pavement, etc.

      AMPIP, headquartered in Mexico City, is a nongovernmental, nonprofit, full-service industrial parks owners association, representing about 160 of the nation’s most advanced industrial parks.

      AMPIP’s mission is to promote Mexico as a prime destination for foreign companies and to assist them in their site selection and facility evaluation processes. It has a 20-year track record for helping manufacturing and logistics companies set up thriving, long-term operations in Mexico.

Why Mexico?tc "Why Mexico?"

      Mexico has a natural competitive advantage over other countries in the world — it shares a 2,000 mile border with the United States, and is part of the large North American market that includes Canada. Mexico has expanded its logistics network with the United States and the world in order to enhance its competitive advantage.

      Many of the largest international logistics companies are already located in Mexico.  In addition, the increase in the use of third-party logistics or contract logistics service providers is a worldwide trend. Mexico is industrially competitive because of the entry of these international logistics corporations, and the growing importance and role logistics is taking in terms of manufacturing and distribution of products. Information technology and globalization have helped to increase this trend.

      Mexico’s logistics infrastructure has improved dramatically in the past 10 years, with the privatization of the maritime ports, railroads, airports, and toll highways. 

      Today, Mexico’s highway network extends more than 110,000 kilometers, of which more than 10 percent are four-lane thoroughfares.

      In addition, foreign investment has played an important role in the recent expansion of Mexico’s logistics infrastructure. Mexico will continue with its plans for infrastructure development that will bring more opportunities and improve competitive costs for both domestic and international companies established in Mexico.

      Goals to improve the competitiveness of Mexico’s logistics network include:

      •Expand the logistics infrastructure network.

      •Foster competition between the logistics companies in order to reduce associated costs for the transportation of goods.

      •Reduce delays associated with the clearing of goods through customs.

      •Strengthen relationships between the logistics service providers and the industrial sectors.

      •Set up more multimodal terminals, integrating key trade corridors.

      •Enlarge the docks (piers), transportation, and storage capacity of the maritime ports.

      •Reduce the time and cost of transferring components and products.

      The efforts by Mexico’s industrial and government leaders to reach these goals will make Mexican goods more competitive since transportation costs represent a high ratio in terms of the cost of goods produced in Mexico. Mexico already offers several advantages for manufacturers. These include:

      •Strategic geographic location: Mexico has become the gateway to access the markets of North America, Latin America, and Asia-Pacific due to its strategic geographic location.

      •Free Trade Agreements: Mexico’s network of free-trade agreements offers companies with operations in Mexico preferential access to 870 million consumers in 32 countries over three continents.  Mexico has become one of the world’s primary trade hubs.

      •Global Production Standards: Mexico’s increasing productivity, efficiency, and quality standards have transformed the country into one of the world’s leading manufacturing nations.

      •Logistics: Mexico’s ongoing investment in its highway network, intermodal terminals, border crossings, rail and seaport infrastructure, and distribution centers has improved the continuity of the supply chain and its efficiency to deliver finished products to the end user.

      •Skilled Work Force: Mexico’s young, skilled, and plentiful work force (60 percent under the age of 25) performs at world-class productivity levels.  The education system is focused on increasing the work force’s technical abilities and synchronizing their programs with the industrial sectors requirements.

      •Manufacturing Integration: Mexico’s 2,000-mile border with the United States facilitates Just-In-Time and supply chain management manufacturing trans-border programs.

      •100 Million Consumer Market: Mexico represents a potential consumer base of 100 million individuals whose average yearly income continues to steadily rise, as does their appetite for consumer products.

      •Stable Economic and Political Environment: Mexico has an open government policy toward foreign direct investment, while macroeconomic policies provide a stable economic, social, and political environment sought by investors worldwide.  It has become the number one recipient of FDI in Latin America.

      •Rich Natural Resources: Mexico offers an abundance of valuable minerals, raw materials, natural gas, and petroleum throughout the country.