Mexico’s Industrial Development: an ongoing Revolution

From the early manufacturing facilities up north, to the cutting edge technology hubs currently at work in the "Bajío" region, the Mexican Industry increasingly keeps on luring investment from all over the globe.

When it all started

Ever since General Porfirio Diaz, Mexican president and dictator between 1876 and 1911, started the railway system that would tremendously boost the territory’s economic development through both domestic and foreign commerce, the country’s history has been filled with multiple technological and industrial landmarks that forged Mexico into what has been considered by many as “the most influential country in Latinamerica for international business relationships”. Whether it’s overseas or with fellow American countries to its north and south, no one can object about the importance of Mexico’s key role in the industrial era.

The last 25 years

Even though many iconic characters in the history and evolution of Mexican economy have created significant movements that steered the country towards industrial and commercial progress, the past 25 years have been of incredible relevance, not only for the country itself, but for global trade relations as well.

Skyscrapers in Santa Fe

Skyscrapers in Santa Fe.

It is quite clear that some recent trade agreements with titans of industry such as Japan, Spain and China have managed to significantly work up new partnerships in the export and import business over the last few years, but the pre-existent and ongoing healthy relationships with its continental partners are what really built the strong foundations for the modern Mexican export and import business.

Such is the case of multinational treaties like the North American Free Trade Agreement (NAFTA), which can be considered as the pioneer treaty that  made the excellent trade relationships – still  ongoing – between Canada, the United States and Mexico possible There have been mixed opinions regarding the true purpose behind NAFTA, and the discussion on whether it was good or bad has been going on since the day it was made official, but the positive effect it has had on its participants’ economic growth and industrial development is undeniable.

Never-ending Progress

Decades ago, what made Mexican soil attractive for foreign investors was a perfect combination of a vast amount of natural resources, important and well consolidated on-shore production facilities, large portions of land available for rent near both borders and a good deal of cheap labor all around.

But even though the Mexican appeal for industrial investment remains constant through the years thanks to said factors, the approach however has evolved in a way that resembles most of the strategies applied by first world industry leaders, making it perfectly clear that considering setting base on Mexican territory is a must for both entrepreneurs and well renowned world powers.

Port of Veracruz at night.

Port of Veracruz at night.

Of course all of those factors are still turning heads over to Mexico, specially now after the current federal government made a huge rearrangement to most of the constitutional clauses and trade policies that regulate the way foreign companies can invest in the country. But also, there are two very important variations regarding the subjects of location and labor that fully endorse the improvement of what Mexico offers nowadays: Dry Ports and Professional Talent.

Maritime Trade beyond the shore

Dry Ports, which are also referred to as Inland Ports, have enabled a whole new way on how overseas trading works around the world. With a full-on integral solutions strategy, these off-shore facilities provide clients and/or suppliers with everything that has to do with point-to-point logistics: extended customs, transportation (intermodal freight, transshipment, etc.), and even storage. This accommodation results on a significant cutback on overall costs, thus making international business not only cheaper, but far easier.

In Mexico, two pioneers have completely revolutionized the freight and trade process for most of the international ports in the country, or at least the ones with the most traffic. Puerto Interior in Silao, Guanajuato and Interpuerto in Monterrey, Nuevo Leon, have managed to connect key freight ways with on-shore ports to optimize the logistics process for most of the country’s main industrial locations.

Mexico City Skyline

Mexico City Skyline.

A Two-way bridge between Education and Industry

Did the growing industry trigger a bigger demand of professional talent? Or did the high standards of quality education offer a better head hunting market?

The relationship between a continuously developing industrial sector and an overproduction of professional talent is very common among fully developed economies around the globe, and Mexico couldn´t be the exception.

In the olden days, low labor costs were once the first, and sometimes only, thing foreign countries found convenient regarding Latin workforce.

Today, thanks to the wonderfully prepared professional youth that Mexico and other Latin countries have to offer, worldwide organizations have a deeply committed headhunt strategy to be on a constant look-out for talent that can help them consolidate, not only a more productive company, but a better international trade of what’s become the most important export out of Mexico: its minds.

About Pedro Lucero

Business Economist and Sales Manager currently building a career in content writing and editing. High-school teacher, wishful writer and travel enthusiast.

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