Mexico’s development as a focus for foreign investment, is increasing. This has been accentuated in the industrial corridor Bajío representing the fastest growing industrial area of Latin America.

Integrated for the states of Aguascalientes, Guanajuato, Jalisco, Michoacan, Queretaro, San Luis Potosi and Zacatecas, strategically chosen for its excellent geographical position in the center of the country, efficient time displacement of transport and a strong intensity in their interactions; Bajío industrial corridor has international corporate like Honda, Mazda, General Motors, Nissan, Ford, Volkswagen, Toyota, Keihin and generally, various companies from countries like United States, Canada, Italy, France, Germany, Taiwan and Spain, among others.

Throughout the region there are dozens of suppliers: Flextronics, Sensata, American Standard, Jatco, etc. Several suppliers of large companies are seeking to establish in the coming months in this area.

The Bajío industrial corridor has several competitive advantages detected by international corporations, like:

   The natural and agricultural resources.

   The achieved economies of scale and competitive costs.

   The accumulated experience.

   Indices of high specialization.

   Strategic location.

   Diversity in transportation (roads, railways, aircraft, or via telecommunications).

   It has enough infrastructures to reach the distance of 8 hours at the border of US, 5 hours at the ports of Manzanillo and Lazaro Cardenas and about 4 hours to Mexico City.

More and more organizations are interested in this area because it is an important center of productivity for Mexico with large industries such as electrical, automotive and truck, aerospace, wireless telecommunications and trade in raw materials, groceries and metal products.

It is noteworthy that only in the Bajío industrial corridor 80% of the automotive industry is concentrated. 560,000 vehicles, 800,000 engines, 2 million tires and one million 100 thousand transmissions are currently produced.

In the last 3 years arrived 145 projects in this corridor in the amount of seven billion dollars. Thanks to this investment there have been generated 47,000 jobs. 2020 goals are more ambitious for this industrial corridor.

Undoubtedly the Bajío industrial corridor is one of the centers of industrial development with more potential of the entire region. It is an excellent investment option for industries.

Be secure about every aspect of the warehouse you are looking for and choose the best option.

If you are looking for a property to rent in Mexico, specially an industrial building, you need to consider 5 key points before choosing one.

  • Size.
  • Physical location. Is it in an industrial park?
  • Logistic facility with connectivity to the main train lines that run North to South of Mexico.
  • Infraestructure: You must verify if the property has:
    • Electric power substation.
    • Water supply.
    • Sewage and drainage networks.
    • Undergrown communication system.
    • Natural gas.
    • Security stations.
    • Good enclosure.
    • Landscaping.
  • Environmental protection.

 

Steps to leasing an industrial building in Mexico:

  1. Choose the type of property. Industrial property is generally divided into three categories: warehouse property, manufacturing property, and flex (mixed use) property.
  2. Search online for property listings. Search online to find listings on many real estate websites, or directories of industrial parks in Mexico.
  3. View multiple properties in person. Even after extensive viewing online, you should always examine properties in person.

 

Evaluating rent terms:

  1. Ask about hidden expenses.
  2. Know your rental obligations.
  3. Research about the industrial park where is the warehouse.

 

Be secure about every aspect of the warehouse you are looking for and choose the best option.

Doing business in Mexico may be a challenge if you don’t know everything about the country so read here some situations you could suffer at arriving to Mexico.

 

  • Poor adaptation to the Mexican business culture
    Mexican businessmen usually have entrepreneur relationships beyond business . They tend to base their entrepreneur relationships in links, friendship and appreciation. So often they close negotiations in cocktail reunions, mealings or meeting families reunions. In Mexico is common to enjoy social environment beyond business office which is less common in foreign business environment.
  • Time range
    Not estimating the average time to start operation in your strategic planning according your resources and bureaucratic processes could delay the beginning of activity in Mexico.  
  • Distribution channel bad chosen
    In Mexico, don’t knowing the distribution channels can be a failure business factor, also don’t evaluating providers, don’t estimating logistic times and procedures  will affect shipping products to customers.
  • Dependent Mexico
    Mexico depends closely for actions done by USA about politics and economy, so don’t considering possible scenarios in Mexican business environment could be a risky factor.
  • No costs balance
    In Mexico the costs of infrastructure and manpower are low compared with other countries as USA or China but if you don’t know tax regulations or you don’t contract a CPA then your business will have a negative impact in the costs of your processes.
  • Getting wrong CPA
    In Mexico there are many financial accountant but only few are certificated specialists by the Mexican Institute of Public Accountants (Instituto Mexicano de Contadores Públicos, IMCP). So underestimating the importance of a CPA or choosing the wrong financial accountant can be dangerous to your business.
  • Wrong landing
    In México there are more of 250 industrial parks, which are platforms to have best operations and business control. Don’t considerate the landing of your business into an industrial park could bring you logistic problems, bad business relationships and wasting time.

 

Before starting a business in Mexico, be sure that you have the correct information, even it that includes a reliable translator when you will sign a contract.

In Mexico, the contract is the most important piece to start a business. Click here to know what aspects you must verify in a legal mexican contract.