In brief 2021 Authorized Version: June 25, 2021

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In brief 2021 Authorized Version: June 25, 2021
MEXICO
                                                                        in brief
                                                                      2021
AMPIP, your best partner for your site selection project in Mexico®

                                                                             Authorized Version: June 25, 2021
In brief 2021 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)
In brief 2021 Authorized Version: June 25, 2021
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)
In brief 2021 Authorized Version: June 25, 2021
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)
In brief 2021 Authorized Version: June 25, 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
In brief 2021 Authorized Version: June 25, 2021
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.
In brief 2021 Authorized Version: June 25, 2021
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.
In brief 2021 Authorized Version: June 25, 2021
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.
In brief 2021 Authorized Version: June 25, 2021
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.
In brief 2021 Authorized Version: June 25, 2021
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

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             authorization. Unauthorized reproduction is prohibited and is subject to the Industrial Property Law.
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