The Bajio region of Mexico stands out as a top contender when it comes to finding the perfect location for manufacturing. Known for its strategic advantages, this region offers a blend of cost-effectiveness, skilled labor, and robust infrastructure that can significantly boost your manufacturing operations. Here’s why the Bajio region is a hotspot for manufacturers.
Strategic Location
- Central Position: The Bajio region is centrally located in Mexico, providing easy access to major markets within and internationally. It is a strategic location not so far from the main ports such as Manzanillo, Lázaro Cárdenas, and Altamira and relatively close to the U.S. border.
- Connectivity: The region is well-connected by a network of highways, railroads, and proximity to major ports and airports, facilitating efficient logistics and distribution.
Skilled Workforce
- Education and Training: The region is home to several universities and technical institutes that produce a skilled labor force, particularly in engineering and manufacturing disciplines.
- Labor Quality: As the Bajio region, is an important automotive and aerospace hub, you can find workers with previous experience and a high technical expertise.
Economic Incentives
- Government Support: The Mexican government offers various incentives for foreign and domestic investors, including tax incentives, subsidies, and support for infrastructure development, depending on the size of the investment.
- Special Economic Zones: Some areas within the Bajio region have been designated as special economic zones, providing additional benefits to manufacturers.
Benefits of SEZ:
- Tax Incentives: SEZ businesses often enjoy tax benefits, including reduced corporate taxes, VAT exemptions, and import duty reductions.
- Infrastructure Development: SEZs receive significant investments in infrastructure such as transportation, utilities, and communication networks, which facilitate efficient manufacturing and logistics operations
- Regulatory Simplification: SEZs typically offer streamlined regulatory processes, making it easier for companies to establish and expand their operations.
Cost Advantage
- Lower Labor Costs: Compared to the northern part of Mexico, labor costs in the Bajio region are significantly lower, allowing for more competitive production costs.
- Operational Costs: Overall operational costs, including utilities and real estate, are also lower in the Bajio region.
Industrial Clusters
- Automotive and Aerospace: The region has established strong industrial clusters, particularly in the automotive and aerospace sectors, leading to a well-developed supply chain and collaboration opportunities. The Bajío region has approximately 1,000 to 1,200 automotive companies and there are estimated to be around 100 aerospace companies. (DATA MEXICO)
- Supplier Base: A robust network of suppliers and service providers supports manufacturing operations, ensuring the availability of necessary materials and components.
Infrastructure
- Modern Facilities: The region boasts modern industrial parks and manufacturing facilities designed to meet the needs of high-tech manufacturing.
Quality of Life
- Living Standards: The Bajio region offers a good quality of life with modern amenities, making it attractive for expatriates and local employees.
- Safety: Most states in the Bajio region are considered very safe places, which is an important consideration for foreign investors and their employees.
Innovation and Technology
- Research and Development: In the Bajio region, several research institutions and a culture of innovation supporting advancements in manufacturing technologies and processes.
- Adoption of Industry 4.0: Companies in this area are increasingly adopting Industry 4.0 practices, enhancing efficiency and productivity through automation and data exchange.
In summary, the Bajio Region presents a compelling location for manufacturers looking to optimize their operations. From its strategic location and skilled workforce to cost advantages and modern infrastructure, the region offers an integral environment conducive to manufacturing success. By choosing this region, manufacturers can benefit from a competitive edge, operational efficiency, and a supportive business ecosystem, making it an ideal location for both new and expanding manufacturing ventures.
Is your business considering manufacturing in the Bajio Region? Mexcentrix can help you by facilitating the process through a smooth start and running of operations. Contact us!