Automotive and Aerospace: Why The Bajío Region?

Studies on the automotive market in Mexico reveal that the El Bajío region is projected to be the largest automotive cluster in Latin America by 2016, according to many CEOs in the sector. [1]

According to the experts, Mexico has a steady flow of investment in this economic sector and also possesses a skilled labour force, traits that make it an attractive country for major industry players worldwide. Thus, the arrival of new assembly plants has activated all the supply chains linked to the industry and encouraged the formation of clusters of suppliers and service providers.[2]

While it’s typically the large companies that get the attention from the mainstream media for their investment in Mexican manufacturing, it should not go unnoticed that tier one, two and three suppliers are also transitioning in a big way to central Mexico to leverage the benefits of Mexican manufacturing. Such companies know they need to be here in order to service the fast growth taking place and find their own opportunities. [3]

The Mexican aerospace industry is one of the fastest growing in the world, with annual growth of 20%, and it is the third main exporter in the world of this sector. [4]

Querétaro is today the city with the highest development in Mexico, and 5th in Latin America. According to many experts, the new “hot spot” for business opportunities is San Luis Potosí, as a more “virgin” region.

In 2014, a commercial visit of 7 British companies took place in Querétaro, one of the main commercial zones of Bajío Region, to evaluate business opportunities in the aerospace and automotive sector. The companies were the following:  TWI Ltd, Delcam, Bodycote, Renishaw, Kiveton Park Steel, Group Rhodes y M&I Materials.

Among these companies, at least three are already established in The Bajío Region having found in Mexico the business environment they were looking for to expand globally and increase their competitiveness. These companies are: Bodycote in San Luis Potosi, Delcam in Guanajuato and Renishaw in Nuevo Leon.

Renishaw’s Assistant Chief Executive said: “We see significant potential for our business in Mexico, where sectors such as automotive and electronics are showing good growth. These are all industries in which our products can make a real difference to manufacturing efficiency and quality…”

Mexico represents a key opportunity for companies from the UK due to the new trends in manufacturing, the need to incorporate an efficient and global supply chain and the access to different potential and desired new markets (such as North and Latin America).

In addition, due to the increase in economic activity in the region, more and more industries can benefit from this prosperity, (Hotel and tourism, Real Estate & development, entertainment and food & beverage industry, etc.)

[1] http://negocios.promexico.gob.mx/english/05-2012/art09.html

[2] Ídem

[3] http://www.entradagroup.com/why-suppliers-are-investing-in-central-mexico-2/

[4] http://www.elfinanciero.com.mx/bajio/arribara-a-queretaro-mision-comercial-de-empresas-britanicas.html