The Mexican economy is one of the most dynamic in the American continent; its proximity to one of the world’s main economic powers has strongly influenced the country’s development and its governmental, economic and social policies. Since the signing of NAFTA (now USMCA), Mexico has been almost completely transformed from a total economic dependence on its oil reserves to a market economy, fully integrated with global supply chains. Investment

This opening has allowed hundreds of thousands of international companies to find in this country a very attractive destination to invest, however, this has not simplified the process to invest, or to ensure the permanence of companies in the territory. There are a series of internal and external factors that directly impact the operation of companies, their profit margins, productive reinvestment, but, above all, their long-term success. Investment

In a very short period of time Mexico has become a manufacturing power, rivaled by very few nations in the Americas, possibly only rivaled by Brazil. There are many opinions on the subject, in which several authors visualize the potential of other countries in the same continent, such as Chile, Colombia, and Uruguay; however, in reality, they are still far away from the manufacturing infrastructure that our country has developed, the geographical position we have, and the large number of trade agreements signed that allow us to export or re-export goods with so many benefits and at such a low cost. Investment

It is important to mention that the manufacturing infrastructure is not the only benefit of investing in Mexico; at the same time, a very important highway construction plan has been developed, which has made our country a logistics hub for the United States. The national government has promoted the development of road regulations with high quality standards, which has encouraged transportation companies to improve their services, to renew their vehicle fleet, with the latest generation trucks, which allow for a faster, more efficient and safer transportation of goods, maximizing the use of fossil fuels, for a lower environmental impact. Investment

The September 11 attacks in the United States prompted the development of the now C-TPAT certification and the Authorized Economic Operator certification, and Mexico has taken the latter beyond those traditionally applied by other nations, by including the subject of customs and tax compliance, which added to the topic of security in the supply chain, making Mexican transportation companies among the most stringent, safe and efficient in the world. Mexico has an important number of companies dedicated to freight transportation, which offers a wide range of suppliers, leading the sector to a very intensive competition, directly benefiting the customers of its services, by having a huge offer at one of the most competitive costs globally. Investment

It is of vital importance to highlight that as a result of the signing of NAFTA (today TMEC), the labor force for the manufacturing sector is one of the most technified and professional in the world, and in terms of cost-benefit, it is the best positioned in the world. Investment

A very representative example of the above is the automotive sector, which requires highly skilled and prepared labor, as well as the aerospace sector, and in Mexico they have found highly trained personnel, capable of adapting to new technological production processes in a reasonable amount of time. The most knowledgeable experts on the subject assure that on the topic of productive relocation, moving their production plants, only on the subject of production costs linked to labor, savings of 25 percent are achieved. This is without considering the logistic costs of transporting their merchandise to other countries in the American continent and especially to the United States.

Another fundamental aspect to highlight is the high concentration of large commercial chains and the most exclusive brands worldwide, who have found in Mexico a very interesting market and are in full development towards maturity in their consumption habits, a very important issue if we observe the changes in the consumption habits of Mexicans, who, given the enormous supply of products and brands coming to the country, from practically all over the world, and as a result of the opening of trade, have become a country with a growing and constant tendency towards high consumption of products and services, a trend that is growing very rapidly as new generations of Mexicans are becoming more and more aware of the importance of the Mexican market and the need to increase their consumption habits, This trend is growing rapidly as the new generations become adults, demanding more and more high value products, seeking a cultural openness to the products consumed in the rest of the world.

A potential market of 130 million inhabitants in national territory, with diverse income levels, makes Mexico a country with tastes and possibilities for products of any origin in the world, this not including the millions of Mexicans living in the United States, who strengthen the purchasing power of their families living in Mexico through the sending of remittances, a sum that grows more and more, and that has not been affected by the various global economic crises that have shaken the world and that are increasingly recurrent, and only in 2020, Mexico received on this account; $40,606 million dollars, money that becomes a potential purchasing power for millions of Mexican families.

Mexico is, in short, a developing power, with all the vicissitudes that this entails, with ups and downs, with a growing domestic market and with preferential access to one of the most powerful economic markets in the world due to cultural and economic issues; North America, even more, with the constant commercial battle between the US and China, our country is emerging as the best option to invest in the short, medium and long term, ensuring the profits of the companies if they have a strategic ally to guide them in their investments in Mexico, a task in which Asesores Stratego has specialized with great success over the last decade.

 

 


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