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Mexico’s warm heart of industry

Article - August 24, 2011
From agriculture and tourism through pharmaceuticals and hi-tech industry, Morelos has a thriving and diversified economy
MARCO ANTONIO ADAME CASTILLO, GOVERNOR OF MORELOS
One of Mexico’s smaller states, covering an area just over 1,900 square miles, Morelos is the country’s third most densely packed after Mexico City and the State of Mexico. Located in the region known as ‘the heart of Mexico’, an area boasting 40% of the country’s population and roughly the same percentage of Mexico’s gross domestic product (GDP), the state of Morelos borders Mexico City to the south.

Called ‘the City of the Never-ending Spring’ for its mild climate (which has helped create a thriving fresh-cut flower industry), Morelos’ capital Cuernavaca is home to Cuernavaca Valley Industrial City. Built in 1965 after the opening of the Mexico City-Acapulco highway the decade before, the industrial park has since flourished, forming the backbone of Morelos’ thriving industrial sector.

Today, Morelos represents more than 30% of Mexico’s pharmaceutical production, and is home to world’s largest drug companies, including Unilever and GlaxoSmith-Kline. A second industrial powerhouse is the state’s automotive industry. Nissan established Morelos’ first plant nearly 40 years ago, and a network of automotive parts suppliers has developed since then.

Morelos also boasts a growing knowledge cluster, an industry the state government is intent on developing further. There are also now more than 40 research and development centers in Morelos and 160 laboratories, and a series of industrial and technology parks are now being built to link companies and universities in the state.
‘MORELOS ALSO HAS A LOT TO OFFER, A FACT THAT HAS BEEN INTERNATIONALLY RECOGNIZED BY THOSE LOOKING FOR A VALUE-ADDED CULTURAL EXPERIENCE’

Consequently, the state draws workers from throughout the country and is hailed as having Mexico’s second-best prepared workforce after Mexico City. Today, commerce, transportation, services and tourism account for nearly 60% of the state’s GDP, and employ roughly half of Morelos’ population. The rise in the services sector is a reflection of the high levels of national migration toward the state and its jobs.

“The companies operating here are technology-based, and this is exactly the field we are interested in developing further. In order to attract more companies of this sort, the federal and state governments provide individual attention to the needs and incentives for each company,” says State Governor Marco Antonio Adame Castillo.

“Support at the state level has also included the development of knowledge clusters aimed at gathering together an above-average number of highly trained personnel in science and technology who are focused on industrial links and innovation so that companies here can fully develop. We are developing scientific and technological parks that collaborate with the universities, and any company moving in can become involved in the projects they are working on.”

Other supporting infrastructure now being developed includes the refurbishment of Cuernavaca’s airport, the construction of the Morelos World Trade Center, the ITESM Technology Park and the 21st Century Highway. A gas pipeline that will connect Morelos to the national network is also under construction.

Another pillar of the state economy the Adame administration is hoping to expand is tourism. More than 12 million visitors arrive in the state each year to see attractions such as the World Heritage Site of pre-Columbian Xochicalco and the majestic 16th century monasteries of the Convent Route, as well as the state’s national park, Lagunas de Zempoala, one of Mexico’s largest parks on the southern flank of the Sierra Madre Mountains. Cuernavaca itself is a popular destination for Spanish language students, many of whom come from the U.S.

“President Calderon’s strategy is to diversify Mexico’s tourism offer to take better advantage of the potential of the entire country. Mexico is normally associated with sun and sand, but each region has enormous potential, whether in tourism related to health, nature, culture, religion, or science and business. Morelos also has a lot to offer, a fact that has been internationally recognized by those looking for a value-added cultural experience in line with a growing appreciation for environmental protection,” says Mr. Adame.

“We have a wonderful climate, with a year-round temperature of 75°F, and occupy a privileged position in terms of biodiversity. This gives us an advantage in nature tourism. We are currently developing the area around Tequesquitengo Lake for eco-tourism as well as other hiking areas, in addition to emphasizing our cultural and historical assets.”

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