Industrial spaces increase in Mexico - Oradel
The coronavirus and its impact on global transport
7 May, 2020

Aumentan los espacios industriales en México

Industrial spaces increase in Mexico

Mexico faces major economic challenges for foreign investment, but the competitiveness of its workforce and its geography make it one of the world’s top markets for the sale and rental of industrial space.

According to Claudia Avila Connelly, CEO of the Mexican Association of Private Industrial Parks (AMPIP), the negotiation of the Trade Agreement between Mexico, the United States and Canada (USMCA), and changes in the federal government have led to uncertainty in the country. However, Mexico remains an attractive prospect for new companies seeking to make the most of the region’s strategic and competitive advantages, including its workforce, connectivity, access to markets and industrial clusters.

Today AMPIP is formed by more than 270 industrial parks with a total of 2,286 companies. The United States is the main source of Foreign Direct Investment (FDI), especially in manufacturing, which uses these industrial spaces built in Mexico, followed by Japan, Germany and South Korea.

The growth in the industrial and logistics market is expected to remain stable. The reason for this, according to Avila Connelly, is that the ratification of the USMCA will provide greater certainty for foreign investment in the country’s manufacturing industry.

During the negotiation process, some investment projects were put on hold because it was not clear what the final resolution would be. However, the CEO of the AMPIP explained that work must be done to promote and strengthen internal conditions, as well as infrastructure, security and rule of law, in order to attract more companies that are looking to rent or buy industrial premises for their operations.

The key role of AMPIP in the growth of industrial parks

AMPIP is formed by 67 corporate partners, including industrial developers, investment funds, industrial REITs and state governments. It has a territorial reserve of over 105.8 million square meters, more than 38.9 million square meters of building space and 2.5 million square meters under development.

The main objective of AMPIP is to promote and catalyze investment by international companies that want to set up in the best locations, with potential for the development of new economic hubs in the country.

AMPIP believes that new industrial parks will be developed in the country in the course of 2020, mainly for the manufacturing, logistics and distribution sectors which last year recorded an overall growth of 5% of available inventory, as developers anticipate potential demand. In addition, the take-up of industrial buildings stood at over 90%, which is positive for the country.

The importance of Oradel as an industrial park

Oradel Industrial Center is located in Nuevo Laredo, Tamaulipas, the busiest commercial land port in the world, which offers benefits to international companies with operations in this industrial park.

This is mainly due to its strategic location, as it connects to the “NAFTA Highway” and is 10 minutes away from the international bridges with the United States.

In addition, Oradel seeks to attract more foreign companies to rent or buy industrial buildings in the park, so it offers a complete ecosystem that enables workers to live there.

Its benefits include:

-Security in the whole park area, which allows for quality of life and peacefulness.

-Universidad Tecnológica de Nuevo Laredo: This university works closely with companies in Oradel. It is a great option for training workers, recruiting new talent and creating productivity programs designed by the university for companies.

-More than 5,000 houses in the industrial zone for workers from companies in the industrial park and their families.

-Public school and day care: Having these two services in the park reduces staff turnover and provides stability for workers and their families.

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