GENERAL SITUATION IN MEXICO
Weekly Review I November 20, 2024
RELEVANT NEWS INDUSTRIES
AEROSPACE
GE Aerospace is exploring new investment opportunities in Querétaro, with plans to announce future developments in the coming months, according to Andres Soler Perez Salazar, the company’s director. The company is focusing on specific technologies in the propulsion sector, such as controls and external systems for fluid and information conduction. A recent project in the state is the Sustainable Aviation Fuel (SAF) Laboratory, developed in collaboration with the Aeronautical University of Querétaro (UNAQ), which will test aeronautical equipment using 100% biofuels. The laboratory, with an investment of $4.8 million, supports the aviation industry’s goal of achieving net-zero emissions by 2050. GE Aerospace employs 1,000 engineers in Querétaro and remains open to further growth and recruitment in various engineering fields.
SOURCE: MEXICO NOW
AUTOMOTIVE
Jaguar Land Rover (JLR) is making significant strides in both its operations in Mexico and its global strategy. In Mexico, the company is addressing supply chain disruptions by expanding its auto parts storage capacity, increasing its storage space from 670m² to 1,500m² in collaboration with DHL, and planning a second expansion to support a projected 50% sales increase. Globally, JLR is reimagining the Jaguar brand, transitioning it into a fully electric luxury automaker as part of its “Reimagine” strategy. This shift aims to position Jaguar alongside high-end brands like Bentley and Porsche, focusing on sustainability and luxury. The transformation will start with a new lineup of three electric vehicles, including a four-door GT debuting in 2026, offering over 700 km of range and more than 1,000 hp for the top models, all built on Jaguar’s bespoke electric platform. The new vehicles will target the high-end market, with prices starting at $127,000.
SOURCE MEXICO BUSINESS NEWS
NEWS BY STATE
BAJA CALIFORNIA
The Secretariat of Economy and Innovation of Baja California (SEI) announced that German companies have made investments in the state following a trade mission to Ireland and Germany, facilitated by the ProBaja Trade & Investment alliance. The mission aimed to strengthen relationships with key investment countries and featured participation in “Electrónica,” a leading fair for advanced technology and semiconductors. Notable outcomes include investments from Wohlrab, a medical industry leader, and interest from Toolcraft, specializing in aerospace and semiconductor machinery. Additionally, a German delegation will visit Baja California as part of “Semicon West 2025,” and meetings were held with companies like Bayern Innovativ and COTO Technologies. The ProBaja alliance, including local promotion agencies, showcased Baja California’s market opportunities and talent to international investors.
SOURCE: MEXICO NOW
NEWS BY STATE
BAJA CALIFORNIA
As a result of new investments promoted by the current administration, Governor Marina del Pilar Ávila Olmeda inaugurated the construction of the Natura Industrial Park, an innovative project that will transform the southeast of Tijuana by boosting economic development, job creation, and the well-being of thousands of families in Baja California. The project, a collaboration between Grupo Musa and Grupo Ruba, will cover over 180 hectares and include 24 industrial warehouses to meet the growing demand in the maquiladora sector, a key part of the state’s economy. The Natura Development model integrates residential, educational, and commercial spaces, reducing distances between homes, work, and essential services, strengthening community bonds and improving the quality of life. Governor Marina del Pilar also emphasized the state’s economic growth, with over $5.3 billion in foreign investment, and reaffirmed the goal of achieving 100,000 housing actions to ensure all families have access to decent housing. This project aligns with the state’s vision for sustainable development, positioning Baja California as a leader in innovation and economic growth.
SOURCE: INDUSTRIAL NEWS BC
The Secretariat of Economy and Innovation of Baja California (SEI) announced that German companies have made investments in the state following a trade mission to Ireland and Germany, facilitated by the ProBaja Trade & Investment alliance. The mission aimed to strengthen relationships with key investment countries and featured participation in “Electrónica,” a leading fair for advanced technology and semiconductors. Notable outcomes include investments from Wohlrab, a medical industry leader, and interest from Toolcraft, specializing in aerospace and semiconductor machinery. Additionally, a German delegation will visit Baja California as part of “Semicon West 2025,” and meetings were held with companies like Bayern Innovativ and COTO Technologies. The ProBaja alliance, including local promotion agencies, showcased Baja California’s market opportunities and talent to international investors.
SOURCE: MEXICO NOW
NUEVO LEON
In 2024, Nuevo León has become the leading state in Mexico for industrial spaces, driven by significant foreign investment, its strategic location, and favorable social and cultural conditions. The state now has 1,590 hectares dedicated to industrial development, growing by 100 hectares annually over the past five years. It is followed by Chihuahua, Baja California, and the State of Mexico in industrial space, with significant growth in these areas as well. Despite the positive outlook, challenges such as judicial reforms, security issues, and uncertainty around the USMCA may delay some investment projects. Nonetheless, the industrial sector remains dynamic, with an expected total absorption of 4.7 million square meters of industrial space by the end of 2024.
SOURCE: PLAYERS OF LIFE
ProximityParks has begun the construction of its new project, ProximityParks San Pedro, aimed at bringing logistics and e-commerce companies closer to the high-consumption market in the Monterrey metropolitan area. Set to open in September 2025, this project reinforces ProximityParks’ leadership in developing last-mile logistics industrial parks in Mexico, with the largest national portfolio of industrial properties. The $25 million project spans four hectares and will offer 19,000 square meters of warehouse and office space, with quick access to the municipalities of San Pedro G.G., Monterrey, and Santa Catarina. The facility will feature premium construction specifications, sustainable equipment, renewable energy generation, and infrastructure for electric vehicle logistics. It forms part of ProximityParks’ strategic plan to invest over 8 billion pesos in Mexico’s major cities by 2027, catering to the growing demand for e-commerce and urban goods distribution.
SOURCE: MEXICO INDUSTRY
NEWS BY STATE
CHIHUAHUA
The Secretariat of Innovation and Economic Development (SIDE) launched the DiDigitalízate program to support over 300 micro, small, and medium-sized businesses in Chihuahua, focusing on the restaurant industry. The program offers 25 hours of training on topics such as sustainable business models, digital skills, and hospitality services. It aims to help restaurant owners modernize their operations and expand into new markets. The initiative is a collaboration between the state government, DiDi Food, CANIRAC Chihuahua, Coparmex Chihuahua, NAFIN, and Universidad Anáhuac de México. Participants who complete the program will receive a certificate.
SOURCE: GOVERNMENT OF CHIHUAHUA
NEWS BY STATE
GUANAJUATO
The “Meeting with Presidents of the Clusters of the State of Guanajuato,” organized by the state government, focused on the economy and growth prospects of key industrial clusters in the region. Guanajuato’s 11 clusters currently generate over 890,000 jobs. During the strategic meeting, cluster representatives committed to collaborating and sharing experiences to enhance the competitiveness of each sector. Claudia Cristina Villaseñor Aguilar, head of the Secretariat of Economy of Guanajuato, emphasized that the integration of these sectors aims not only at competitiveness but also at fostering an inclusive economy where all businesses, regardless of size, can participate in strengthening initiatives. The clusters include logistics and mobility, aerospace, ceramics, IT, construction, housing, medical devices and health sciences, food, automotive, fashion, and chemicals. Benefits of this collaboration include shared resources, workforce professionalization, and increased exports, helping local businesses access new national and international markets
SOURCE: MEXICO INDUSTRY
NEWS BY STATE
AGUASCALIENTES
At a promotional seminar held at the Mexican Embassy in Japan, over 30 representatives from Japanese companies were presented with Aguascalientes’ competitive advantages. The state has received more than $7 billion in Foreign Direct Investment (FDI) from Japan, accounting for 58% of the total investment in Aguascalientes, demonstrating strong and long-lasting bilateral relations. Key competitive advantages highlighted included Japan’s leadership in investment, competitive positioning, public safety, high-quality logistics infrastructure, favorable business environment, skilled workforce, and a strategic bilateral relationship. Aguascalientes is ranked as Mexico’s sixth most competitive state, thanks to its security, infrastructure, and collaboration between educational institutions and the business sector, ensuring a skilled workforce that benefits industry growth.
SOURCE : MEXICO INDUSTRY
SAN LUIS POTOSI
To strengthen ties in economic, educational, cultural, commercial, and environmental areas, and explore opportunities for new investments, Ricardo Gallardo Cardona, Governor of San Luis Potosí, met with Clemens Von Goetze, the Extraordinary and Plenipotentiary Ambassador of the Federal Republic of Germany to Mexico. During the meeting, Gallardo Cardona highlighted the importance of the dual education system in the state, which involves seven institutions and has produced over 700 graduates, with another 665 in training. He also emphasized the presence of major German companies like BMW, Bosch, Continental, and Gestamp, noting that German investment is among the most significant in the state. Ambassador Von Goetze acknowledged Mexico as Germany’s most important trading partner and the largest investment destination in Latin America, reaffirming efforts to build a close and trusting relationship in political, cultural, scientific, and global areas.
SOURCE: MEXICO INDUSTRY
NEWS BY STATE
CDMX
Mexico City’s government, led by Mayor Clara Brugada, announced the creation of the Investment Attraction Agency during the “Mexico City, Capital of Transformation” business forum. The agency, led by Arturo Adolfo Palacios, aims to streamline investments and enhance economic growth in the city, which contributes 14% of the national GDP. Brugada highlighted the city’s global appeal, robust financial health, and diversified economy, emphasizing its strengths in culture, tourism, manufacturing, and technology. New initiatives include digital portals for business and real estate, the appointment of Carlos Martínez Velázquez to the Tourism Promotion Fund, and efforts to integrate informal businesses into the formal economy. These measures, coupled with improved safety and a focus on innovation, aim to position Mexico City as a hub for “mentefactura” (knowledge-based economy), fostering collaboration between the public and private sectors. Business leaders praised the city’s dynamism and its role in driving national economic development.
SOURCE: EL ECONOMISTA
STATE OF MEXICO
Officials from the State of Mexico and China’s Shandong Province met to explore collaboration on urban planning, housing, and sustainable development. Ida Mercedes, State of Mexico Urban Development Undersecretary, emphasized shared challenges and the importance of social-focused public works. Wang Yuzhi, Shandong’s Urban and Rural Development Director, expressed interest in involving international firms in housing and infrastructure projects. Highlighting 10 years of bilateral ties, José Pablo Montemayor, Mexico State’s International Affairs Coordinator, noted past cooperation in trade, education, and technology, aligning with the Agenda 2030’s goals. The partnership seeks to foster sustainable growth and enhance living standards.
SOURCE: MEXICO INDUSTRY
INVESTMENT NEWS
NORTH MUBEA
With an investment of 60 million dollars, the new Mubea plant was inaugurated in the Amistad Chuy María Industrial Park in Ramos Arizpe, Coahuila. Production is expected to begin in 2025, and the plant is projected to generate over 200 jobs.
AMAZON
The new facility covers an area of 35,860 square meters and can store over 900,000 products. It is located in the Kronos Park in Apodaca. The investment amount or number of jobs was not disclosed.
CENTRAL MEXICO
GLN MOLDES
GLN Moldes México announced the expansion of its operations in the Aeropuerto Industrial Park in Colón, Querétaro, with an investment of 10 million dollars. The expansion of the Portuguese company, specialized in the plastics sector, will generate 64 jobs.
SOURCE: MEXICO INDUSTRY, EL ECONOMISTA
LEGISLATIVE CHANGES AND INITIATIVES
LABOR
• DECREE BILL AMENDING SECTION XV OF ARTICLE 133 OF THE FEDERAL LABOR LAW
Presented by: Sen. Julieta Andrea Ramírez Padilla (BC - MORENA) (view profile)
Objective: Prohibits employers from dismissing or pressuring a worker to resign due to pregnancy. This protection covers the pregnancy period and extends up to one year after maternity leave ends.
Status: 2024-11-13 - Published in the parliamentary gazette
• DECREE BILL AMENDING ARTICLE 123 OF THE POLITICAL CONSTITUTION OF THE UNITED MEXICAN STATES
Presented by: Sen. Carlos Lomelí Bolaños (JalMORENA) (view profile)
Objective: Prohibits worker pension funds and assets from funding government projects or obligations. Establishes the right to transfer accrued social security benefits, including housing funds, across pension systems.
Status: 2024-11-13 - Published in the parliamentary gazette
ECONOMY
• INITIATIVE TO AMEND ARTICLE 1 OF THE FEDERAL LAW OF RIGHTS ON FEES BELOW INFLATION
Presented by: Deputy Raúl Lozano Caballero (Plur - MC)
Objective: To ensure annual updates to fee rates under the Federal Law of Rights remain below inflation, effective January 1 of each year.
Status: 2024-11-13 - Published in the Parliamentary Gazette
LEGISLATIVE CHANGES AND INITIATIVES
POLITICAL
• DECREE PROPOSAL TO AMEND ARTICLE 19 OF THE CONSTITUTION OF MEXICO ON CRIMINAL MATTERS
Presented by: Committee on Constitutional Points (LV Legislature)
Objective: Mandates automatic pretrial detention for extortion, drug dealing, crimes involving fentanyl and synthetic drugs, tax fraud, smuggling, and activities related to fraudulent tax receipts, as specified by law.
Status: 2024-11-13 – Approved; sent to the Senate of the Republic
• DECREE PROPOSAL TO AMEND ARTICLE 21 OF THE CONSTITUTION OF MEXICO ON PUBLIC SECURITY
Presented by: Joint Committees on Public Security, Constitutional Points, and Legislative Studies, First Committee
Objective: To empower the Secretariat of Security and Citizen Protection with investigative authority, coordination of the National Public Security Strategy, oversight of the National Intelligence System, and enhanced collaboration across government levels. It establishes an Executive Secretariat to standardize criteria, ensure transparency, and audit federal security funds.
Status: 2024-11-13 - Approved; sent to the Chamber of Deputies
PUBLIC ADMINISTRATION
• DISCUSSION DRAFT WITH PROPOSED DECREE TO AMEND, ADD, AND REPEAL PROVISIONS OF THE ORGANIC LAW OF THE FEDERAL PUBLIC ADMINISTRATION
Presented by: Governance and Population Committee
Objective: To restructure the Federal Public Administration to enhance efficiency, austerity, and digital governance. Key changes include creating agencies for digital transformation, women’s affairs, science and innovation, while reforming sectors like health, education, environment, and anti-corruption for better individual and community development.
Status: 2024-11-13 - Published in the Parliamentary Gazette
• DISCUSSION DRAFT WITH PROPOSED DECREE TO AMEND, ADD, AND REPEAL PROVISIONS OF VARIOUS LAWS ON ORGANIZATIONAL SIMPLIFICATION
Presented by: Constitutional Points Committee (LV Legislature)
Objective: To centralize and streamline functions within the Federal Public Administration by reintegrating autonomous and decentralized bodies into federal agencies. The initiative aims to enhance efficiency, reduce duplication, and uphold constitutional austerity principles by dissolving specific autonomous organizations and reallocating their functions.
Status: 2024-11-13 - Published in the Parliamentary Gazette
PRODENSA INSIGHTS
THE FUTURE OF CUSTOMS BROKERS IN MEXICO
Streamlining Trade in Mexico’s Evolving Economy
In an era where Mexican customs facilitate over 8 million foreign trade operations annually, customs brokers have emerged as key players in ensuring the country’s global competitiveness. With 83% of Mexico’s GDP tied to foreign trade, these professionals play a pivotal role in bridging the gap between public regulations and private-sector needs, simplifying processes, and accelerating the flow of goods.
Enhancing Efficiency Through Innovation
The modernization of customs processes in Mexico is being driven by technologies like artificial intelligence and advance clearance systems, offering solutions to expedite clearance times and reduce costs. However, challenges persist, such as high regulatory costs and inconsistencies in technology adoption across customs offices. Collaborative efforts to streamline road transit regulations and extend technological innovations like advance clearance beyond select companies are essential to improving competitiveness.
Key Takeaways:
• Mexico has 50 strategically located customs offices, which collected over 271 billion pesos from maritime customs in the first half of 2024.
• Innovations like AI and risk analysis tools are helping customs brokers reduce bottlenecks, but adoption is uneven across the country.
• Proposals to include the private sector in regulatory development could lead to more efficient customs operations and lower costs for exporters and importers.
The Way Forward
To maintain Mexico’s trade momentum, public-private collaboration is critical. By integrating cutting-edge technologies, refining regulations, and ensuring transparent communication of new rules, customs brokers can solidify their role as strategic enablers of Mexico’s foreign trade.
PRODENSA INSIGHTS
MEXICO’S RISE AS AN ELECTRIC VEHICLE MANUFACTURING HUB
Powering North America’s Transition to Sustainable Transportation
Mexico is cementing its position as a global leader in electric vehicle (EV) manufacturing, playing a critical role in the shift toward sustainable transportation. With its proximity to the U.S., robust automotive industry, skilled workforce, and natural resources like lithium, Mexico is becoming a go-to destination for EV investments. In 2023, the country produced nearly 110,000 EVs, and projections indicate production will rise by 61% in 2024.
Why Global Automakers Choose Mexico
Global manufacturers are capitalizing on Mexico’s strategic advantages, including its trade agreements like the USMCA, cost-effective production, and expertise in automotive innovation. Nearshoring strategies have further strengthened Mexico’s appeal, enabling automakers to streamline supply chains and reduce logistical costs. Brands like General Motors, BMW, and several Chinese EV manufacturers are expanding operations, solidifying Mexico as a key player in the electromobility revolution.
The Role of Supply Chains and Infrastructure
content to meet USMCA requirements. Furthermore, the integration of new technologies and supply chain optimization is positioning Mexico to play a leading role in North America’s clean energy transition.
Key Highlights:
• EV Growth: Mexico’s EV production surged from 6,717 units in 2020 to nearly 110,000 units in 2023.
• Strategic Investments: The EV sector attracted $4.69 billion in the first half of 2024, with a notable focus on supply chain advancements.
• Renewable Energy Goals: Mexico aims to generate 35% of its energy from clean sources by 2024, aligning with the Paris Agreement.
The Road Ahead
Mexico’s leadership in EV manufacturing is not only shaping the future of transportation but also contributing to the broader goals of regional economic integration and climate action. By leveraging nearshoring and sustainable practices, Mexico is poised to drive North America’s competitiveness in the global EV market.
Mexico’s evolving EV supply chain—featuring 320 assemblers, suppliers, and buyers—is driving growth in battery production and advanced technologies. Investments in battery facilities, like BMW’s $800 million plant in San Luis Potosí, reflect the push for regional DOWNLOAD THE FREE E-BOOK FROM PRODENSA.COM/INSIGHTS/E-BOOKS.