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Canadá, tercer mayor emisor de IED hacia Querétaro

Fuente El Economista

Canadá, tercer mayor emisor de IED hacia Querétaro

Es la séptima entidad federativa con más recepción de inversión canadiense en el país, al sumar 2,062.0 millones de dólares entre 1999 y el año pasado.

Querétaro, Qro. Canadá se posiciona como el tercer mayor emisor de Inversión Extranjera Directa (IED) hacia Querétaro, acumulando 2,062.0 millones de dólares desde 1999 al 2020, detallan registros de la Secretaría de Economía.

La IED canadiense se encuentra sólo por debajo de la inversión proveniente de Estados Unidos y de España, que en ese periodo aportaron 6,202.3 y 3,311.7 millones de dólares, respectivamente.

Frente al impacto por la pandemia, en el 2020 la entidad recibió 43.7 millones de dólares con origen en Canadá, esta cifra significa una baja de 50.3% anual.

Del 2008 al 2010, el estado reportó los montos anuales más elevados de inversión canadiense; 233.5 millones de dólares en el 2008, 213.8 millones en el 2009 y 267.6 millones en el 2010. En ese trienio, la IED canadiense sumó 714.9 millones de dólares, que representan 34.7% del total acumulado desde 1999 al 2020.

Con cifras acumuladas, Querétaro es el séptimo con mayor recepción de IED canadiense en el país, al sumar 2,062.0 millones de dólares de 1999 al 2020, por debajo Zacatecas (6,594.7 millones), Ciudad de México (5,852.6), Chihuahua (4,173.6), Coahuila (3,282.4), Sinaloa (3,222.1) y Guerrero (2,790.2).

Presencia de firmas

Bombardier es una de las firmas canadienses instaladas en la entidad, forjando un amplio historial de operaciones en el centro del país; en este contexto, la firma aeroespacial cumple 15 años de instalarse en Querétaro.

Desde esta ubicación fabrica componentes estructurales clave para los jets de negocios líderes de la compañía, incluido el fuselaje trasero de todas las aeronaves Global.

En el 2005 Bombardier Aerospace anunció el establecimiento de un centro manufacturero de clase mundial en Querétaro, el cual emprenderían con una inversión de 200 millones de dólares. En el 2006 inició actividad con un centro de manufactura temporal en el Parque Industrial El Marqués.

Para el 2008, anunció una inversión de 250 millones de dólares para llevar a cabo la manufactura del fuselaje, ensamble de las alas, estabilizadores horizontales y verticales, así como la fabricación e instalación de arneses eléctricos para la aeronave Learjet 85, desde sus instalaciones de Querétaro.

En el 2011 anunció una nueva inversión de 50 millones de dólares en la planta de Querétaro para apoyar la fabricación del fuselaje trasero de sus nuevas aeronaves de negocios Global 7000 y Global 8000.

En México, Bombardier se centra en producir estructuras metálicas, arneses eléctricos y fabricar piezas a base de materiales compuestos.

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U.S.-run factories in Mexico back at full strength after applying COVID-19 protocols

Article by Julian Resendiz originally published on September 30,2020 for Fox40.com

 

EL PASO, Texas (Border Report) – Border industry is poised for explosive growth in the next few years, as companies take heed of lessons learned in the COVID-19 pandemic and relocate more production to North America, trade experts say.

Many U.S. manufacturers who get supplies from China experienced delays during the pandemic, which added to brewing concerns over already tense trade relations between both countries.

“We have a huge number of U.S. companies doing business with China. […] Any number of consumer goods come from China but all those companies are coming under the realization that there is trade tensions that are going to continue regardless of who wins the (U.S. presidential) election,” said Alan Russell, CEO and co-founder of Tecma Group, which runs 50 manufacturing facilities in Mexico and the U.S.

The specter of trade tariffs or another pandemic cutting into Asia-based production is making many manufacturers who sell parts, materials or goods in the United States consider moving at least some of their operations closer to their target market, he and others say.

“So, if you are going to supply North America with a product, you need to have a significant portion of your production in North America,” Russell said. “And where are you going to go? You are going to go to a border city. So, for the next three to five years, I unconditionally see an unprecedented growth in opportunity at these border zones.”

Alan Russell (courtesy Tecma Group)

Russell spoke Wednesday at a virtual U.S.-Mexico trade forum sponsored by Sister Cities International. Experts from both sides of the border say the economic recovery in the manufacturing sector amid the COVID-19 pandemic has been surprisingly  swift.

“We share much more with Mexico than just a border. We share economy, workforce, consumer markets, and integrated supply chains,” said Paola Avila, vice president for international business at the San Diego Regional Chamber of Commerce. “The recovery is also interdependent. Supply chains have really shown their strength. (Manufacturing) is bouncing back.”

Cities like San Diego, where thousands of trucks carrying components and goods manufactured in Tijuana cross into the United States, and El Paso, which shares a border with Juarez and its 300 or so U.S.-run factories, are riding the coattails of this industrial recovery.

“We have seen what appears to be a V-shaped recovery, which is quite shocking,” said David Coronado, director of international bridges for the City of El Paso. “We were expecting a slow recovery. When you look back at the Great Recession, we had a long downturn and a long recovery. Here it’s been month-to-month … a really fast recovery and positive signs for the region.”

In El Paso, commercial traffic is approaching pre-coronavirus levels. “We hit bottom in April. Since then, we’ve seen a recovery in cargo truck traffic but we’re still not back to normal,” Coronado said.

Maquiladoras leading the recovery

The key to the border’s quick industrial turnaround lies in keeping going the U.S.-run plants in Mexico that employ hundreds of thousands of workers.

“We are back to 110% from where we were before the COVID outbreak. It’s an amazing recovery that you could never guess or expect, but we’re back to 100% of our full complement,” Russell said.

The Mexican government curtailed economic activity in the spring to contain the pandemic. However, maquiladoras that make auto parts, medical equipment or aerospace components — which together account for most of the production in Juarez — were labeled as essential businesses and resumed most of their operations on June 1.

A few COVID-19 outbreaks were reported, and in Juarez at least 25 workers died. However, Russell said health issues have been resolved and production is on high gear.

“We’ve gone three months without a single case,” he said. “We have factories with 11,000 people and we have a total of 20 suspicious cases in Tijuana and 24 in Juarez. What we call a suspicious case is someone getting off a bus or coming into the factory and having a high temperature.”

Russell said he’s sensitive to the pandemic because he came down with COVID-19 himself back in March.

“We treat vulnerables in a different way. Most are still at home and we continue to pay them, provide them health education and all,” he said. “We are passionate in our way forward with (COVID-19) protocols and protecting our vulnerable. Everybody else gets back to work. […] I feel with the protocols we have proven we can go back to work full steam ahead.”

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Projects to enhance the supplier market at the Northern Mexican Border

Photo owned by Magnusson Klemencic Associates

(Article in spanish)

El flujo de productos entre San Diego y Baja California alcanzó 1,400 millones de dólares en el 2018 .

Tijuana, BC. Del área metropolitana de Tijuana, Rosarito y Tecate se enviaron aproximadamente 800 millones de dólares de productos y de San Diego llegaron aproximadamente 600 millones de dólares de una serie de productos, reportó el Consejo de Desarrollo Económico de Tijuana (CDT).  

El líder del eje económico del CDT, Miguel Velasco Bustamante, explicó que de acuerdo con el Colegio de la Frontera Norte entre ambos lados de la frontera hay un intenso flujo de mercancías que tan sólo durante el 2018 alcanzó la cifra de 1,400 millones de dólares de productos.

El empresario comentó que el consejo trabaja en un reporte con la actualización de las necesidades de la proveeduría y las oportunidades de negocio que hay en la zona metropolitana y San Diego; así como dar impulso a la mejora regulatoria e incentivos a la productividad y a la inversión.

Para ello, el año pasado el organismo empresarial inició con un diagnóstico de las necesidades de la proveeduría de la región, con la intención de conocer las vocaciones de la ciudad y las áreas de oportunidad de cada uno de los sectores de la industria.

Detalló que el estudio es realizado con fondos del Fideicomiso Empresarial de Baja California y se logró la actualización de necesidades de proveeduría, en coordinación con la Cámara Nacional de la Industria de la Transformación (Canacintra) en Tijuana, con quien se trabajó en la promulgación de la Ley de Fomento a la Proveeduría local.

Se hicieron análisis de cada uno de los sectores en particular con en el electrónico y se coordinaron trabajos para conocer demandas de las grandes empresas tractoras.

“Se encontró que en la industria electrónica hay una serie de componentes, productos y servicios que tienen que importarse y que hay capacidades instaladas localmente para que haya más proveeduría”, expresó.

Velasco Bustamante detalló que la idea del CDT es contribuir con información para que el ecosistema pueda obtener apoyos de los gobiernos municipal, estatal y federal.

“Para este año la idea es actualizar las necesidades de proveeduría y las oportunidades de negocios; se han contratado servicios de un despacho internacional para ser más precisos y saber cuáles son las oportunidades de negocios en cada uno de los sectores”, declaró.

Por su parte Aarón Victorio Escalante, director del CDT, señaló que dentro del eje económico se trabajó en diversos proyectos durante el 2018 que se han ido consolidando con la finalidad de promover la proveeduría local.

Durante la presentación del estudio de Cadenas Productivas y Contenido Nacional de la Industria Maquiladora del municipio de Tijuana, destacó que a través de ese análisis se encontró que en los diversos sectores de la industria hay un potencial importante de crecimiento.

De acuerdo con Canacintra, las maquiladoras en el estado compran tan sólo 2% de insumos locales, y con la iniciativa de fomento a la proveeduría estatal se fijaron como meta incrementar ese consumo hasta 30%, representando 293 millones de dólares anuales para beneficio de la región, por cada punto porcentual que se aumente.

Article originally published by Gabriela Martínez, source: www.eleconomista.com.mx
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Up 47% in six years, the Bajío powers growth in manufacturing industry

Among states, Baja California Sur was No. 1 with 269% growth.
The Bajío region was Mexico’s manufacturing dynamo between 2013 and 2018, achieving growth of 47.2%.

Data from the National Institute of Statistics and Geography (Inegi) shows that Mexico’s overall manufacturing growth between 2013 and 2018 was 17.9% – 1.4% higher than that achieved in the previous six years. The increase in the value of nationwide production was largely driven by the Bajío, a region made up of Guanajuato, San Luis Potosí, Querétaro and Aguascalientes.

Western Mexico – Jalisco, Michoacán, Nayarit and Colima – achieved the second highest growth in the period, with the value of its production up 25.3%.

The northern border region – taking in all six states that abut the United States – was next with 21.5% growth, followed by the central-north region with 15.3% growth and central Mexico, which saw a 9.8% increase.

Among individual states, Baja California Sur was a clear-cut winner. The state saw whopping growth of 269% between 2013 and 2018.

San Luis Potosí was in second place with the value of its output increasing by 73.7%, while Aguascalientes recorded 70.4% growth to finish third.

Mexico’s south and southeast was the only region that saw a decline — a 17.3% decrease. Manufacturing shrunk by 42% in Oaxaca, 16% in Veracruz, 11.8% in Guerrero and 0.8% in Tabasco.

Output in Tamaulipas, Hidalgo, Mexico City, Sonora and Durango also declined in the six-year period.

 

The total value of manufacturing in Mexico last year was just over 7.3 trillion pesos (US $380.1 billion), with 32% of that figure coming from the northern border region. Factories in central Mexico generated 28.2% of the wealth and the Bajío region contributed 21.5%.

In 2013, the same three regions, in the same order, were also the leading contributors to the value of Mexico’s overall manufacturing output.

But 2018 figures show that only the Bajío increased its participation in percentage terms, contributing 4.3% more than it did in the first full year of Enrique Peña Nieto’s presidency.

The newspaper El Economista said that policies introduced by governments in Guanajuato, San Luis Potosí, Querétaro and Aguascalientes have been the driving force behind the Bajío region’s strong performance in manufacturing, pointing out that the states entered into commercial alliances that helped them to attract domestic and foreign investment in sectors such as automotive and electronics.

In November, the governors of the four states also agreed to work together to create a new manufacturing region to be known as the Central Bajío Corridor.

Long-term cooperation between the states will also extend to security, tourism, transport and social development, among other areas.

 

The Bajío region state that generates the most manufacturing wealth is Guanajuato.

Since 2010, it has ranked fourth every year for the value of its economic output behind México state, Nuevo León and Coahuila, which have maintained their spots, in that order, as Mexico’s top three manufacturing powerhouses for almost a decade.

San Luis Potosí and Querétaro are now also in the top 10 manufacturing states, taking the places of Sonora and Tamaulipas, which featured in the 2013 list.

The 7.3 trillion pesos generated by manufacturing last year accounted for 16.1% of gross domestic product (GDP), making the sector the most important of Mexico’s economy.

Production of cars and pickup trucks was the most profitable sub-sector of the manufacturing industry last year, generating 16.2% of all wealth followed by oil refining, which contributed 4.1%.

The production of buses and trucks was the third most profitable sub-sector, making a 4% contribution to the industry’s value.

Between 2013 and 2018, the value of parts manufactured for vehicle transmission systems increased by 101.7%, making it the best performing sub-sector in terms of growth, followed by beer production, which surged 73.5% and car and pickup truck production which grew by 68.1%.

Petroleum refining and the production of pharmaceuticals and tortillas were among the manufacturing sub-sectors whose contribution to total manufacturing value fell while Peña Nieto was in power.

Article originally published by Rodrigo A. Rosales on Wednesday, February 20, 2019 Source: mexiconewsdaily
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Michelin breaks ground on plant in León, Mexico
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Michelin breaks ground on plant in León, Mexico

LEÓN, Mexico (Aug. 24, 2016) — Group Michelin has started construction in Mexico of its 21st factory in North America — eight years after the global economic crisis of 2008 forced it to postpone the project.

“I’m really excited because a few years ago, in 2008, I had to come to this country to postpone our investment because of the crisis,” Michelin CEO Jean-Dominique Senard told Tire Business Aug. 22.

“At the same time I was incredibly impressed by the way the Mexican authorities took the news. So coming back with the decision (to revive the project) is a joy.”

Mr. Senard had earlier hosted a groundbreaking ceremony at the 242-acre site in central Mexico where the French tire company is investing $510 million in what, according to one senior executive, will be Michelin’s first greenfield passenger tire plant in North America in three decades.

In a speech, Mr. Senard said the León investment is the tire maker’s largest investment anywhere in 2016.

“The last time we launched a greenfield passenger tire plant in North America was over 30 years ago,” Scott Clark, executive vice president and COO of Michelin North America, said in a separate interview with Tire Business.

“So this is not something we do every day. This is a big deal and this is exactly the right place to be and at the right time.”

The factory, which will employ 1,000 when finished in late 2018, will be within a threehour drive of 18 car maker assembly plants, Mr. Clark said. It is located in a new industrial park called León-Bajio, which stands beside the León-Silao highway.

 

“The new Michelin investment in Mexico represents a vote of confidence that strengthens the positioning of Mexico as an investment destination, because it comes from a company with a long tradition in the industry and widely recognized for its commitment to innovation”

Idelfonso Guajardo Villarreal, Mexico’s federal economy secretary.

 

Source: http://www.tirebusiness.com/article/20160824/NEWS/160829978

 

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Security Concerns Take a Back Seat as More US Manufacturers Look to Mexico

Mexico City (CNSNews.com) – Experts who help foreign companies build factories in Mexico report a recent surge in interest by U.S. and international firms, with executives voicing less concern about Mexico’s crime and security problems.

“We’ve seen a 40 percent increase in inquiries about building factories in Mexico compared to where we were last year,” Ricardo Rascon, a salesman with The Offshore Group in Tucson told CNSNews.com.

“It has surged dramatically in recent years,” he said. The number of companies approaching the company looking to build facilities in Mexico is not as high as it was prior to the financial crisis of 2007, however.

Half of the increased interest is coming from U.S. companies, while the other half is from companies located in Canada, Germany, South Korea and even China, Rascon said.

“We signed our first Chinese company this week. They are moving a product line from China into Mexico for the logistical advantages for serving the U.S. market.”

Companies in Germany in particular were also showing a “big interest” in building factories in Mexico to be closer to the U.S. market, Rascon said.

U.S. companies that move to Mexico don’t always shut down in the U.S., but often instead open new factories in Mexico to be closer to suppliers, he said.

Rascon also said company executives were asking fewer questions about crime in Mexico than was the case several years ago.

“I could tell you three or four years ago, security was the first thing people would ask, but now it’s on the back burner. Now, all they ask about is cost.”

According to the business data firm Dun & Bradstreet, inquiries from multinational companies about locating in Mexico have increased by 20 percent through June just this year, Reuters reported on Tuesday.

A recent survey of companies that moved jobs overseas to take advantage of lower wages and costs in Asia, but now want to relocate them back to North America, found Mexico to be their “first-choice destination” over the United States.

A third of the companies surveyed said they were now actively looking at moving “primary production and assembly operations currently located in China, India and Brazil back to North America,” it said.

Entitled “Footprint 2020: Expansion and Optimization Approaches for U.S. Manufacturers,” the survey was sponsored by Deloitte and The Manufacturers Alliance for Productivity and Innovation.

In a report this week analyzing corporate credit worthiness in Mexico, Moody’s Investors Service said free trade agreements make Mexico especially attractive to U.S. automakers Ford, GM and Chrysler.

“Hourly industry wages in Mexico are well below rates in Brazil, South Korea and even China,” the report said, noting that the auto manufacturing industry in Mexico is now the seventh largest worldwide and the country’s second largest industry.

“Mexico’s auto-parts manufacturers depend heavily on North America, which bought 82 percent of their exports in 2015, far more than South America (8 percent) or Europe (6 percent),” the report said.

A 2015 survey of 250 senior-level manufacturing and distribution executives in North America and Western Europe by the consulting firm Alix Partners found “continued appetite for nearshoring” with a 32 percent of those surveyed reporting they had recently moved production facilities nearer to their customer markets.

Fifty-five percent of the North American companies said they preferred to locate in the U.S. in order to be closer to their markets while 31 percent favored Mexico.

The firm’s research showed Mexico’s popularity with manufacturers had declined in 2015 from 49 percent three years earlier, possibly due to security concerns.

Asked about security concerns in Mexico, the number of respondents saying they “expected improvement in those areas” dropped from the previous year’s survey.

 

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Reshoring is the New Offshoring – But it’s Not Just a U.S. Trend

The offshoring trend that has dominated manufacturing footprint strategy for the last 30 years was based on solid benefits: lower labor costs, access to raw materials, inexpensive rent, etc. However, many factors such as the significant travel involved in managing overseas business, proximity to the U.S. market, perpetually shifting regulations and intellectual property concerns are significant deterrents for companies to offshore their manufacturing lines. OEMs with constantly scaling or smaller volumes find it especially hard to justify the hassle and expense involved in offshoring. As a result, many OEMs are reversing the trend and moving to a reshoring strategy, and they have sound rationale for doing so. While the United States manufacturing industry has plenty to celebrate with this trend, the movement is more broadly focused on North America as a whole, and Mexico is an especially attractive location for manufacturers.

According to a Deloitte report, 66 percent of survey respondents have offshored manufacturing work overseas in the last two decades. Among those, a third are now considering relocating operations to North America, with Mexico being their first choice and the United States their second.

Mexico offers several key benefits that make it especially attractive: lower labor costs, advantageous land and facility cost structures, more favorable transportation logistics expenses and increased proximity to the U.S. market are a couple of examples.

However, some of the obstacles and concerns manufacturers had about Mexico years ago remain today – transportation infrastructure, security concerns in certain areas and access to skilled labor are a few examples. That is why the component distribution model employed in the U.S. can’t be easily replicated in Mexico and that is also the driving force that led TTI to create a sustainable model that would allow it to fully serve this growing market buyers.”

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How International Issues Affect Foreign Investment in U.S. Real Estate
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How International Issues Affect Foreign Investment in U.S. Real Estate

There’s no doubt that international buyers love U.S. real estate. In 2015, 15.4 percent of all commercial real estate buyers in the U.S. were from overseas, according to financial and professional services firm Jones Lang LaSalle.

On the residential side, the National Association of Realtors reports international buyers purchased 4 percent of existing homes sold in the U.S. in 2015, which made up 8 percent of the total dollar amount of existing homes sales for the year at $104 billion. The biggest foreign residential buyers in 2015 were from China ($28.6 billion), Canada ($11.2 billion), India ($7.9 billion), Mexico ($4.9 billion) and the U.K. ($3.8 billion), according to a study examining Chinese real estate investment conducted by the nonprofit Asia Society and real estate economics firm Rosen Consulting Group.

Foreign investors have long viewed U.S. real estate as a good place to diversify their portfolio and benefit from theworld’s strongest economy. But in recent years, hard assets in the form of U.S. property has also become an option to safely store money. “We’ve become what is today, I guess, the largest offshore loca- tion in the world,” says Ed Mermelstein, an international real estate attorney based in New York.

But what happens to an investor’s interest in U.S. real estate when international events affect his or her home country and lead to uncertainty over the future?

From economic meltdowns abroad to terrorism to squabbles over European Union membership, the growing international role in major U.S. real estate markets means we’re more likely to see the impact of those issues, says Ross Milroy, owner and broker at Ross Milroy Realty in Miami.

“The Miami real estate market – and I think New York is very similar as well –we’re so dependent on the international buyers, and they’re such a huge part of our market,” Milroy says. “A lot of our real estate markets do not follow traditional patterns, and a lot of our demand is dependent on what’s going on in those home countries of our buyers.”

 

“We’ve become what is today, I guess, the largest offshore location in the world,”

Ed Mermelsteinand, Managing Partner at Rheem Bell & Mermelstein, LLP

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Mexico's Tourism and Foreign Investment Rankings Climb
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Mexico’s Tourism and Foreign Investment Rankings Climb

Mexico got some good economic news this week on two fronts as new international surveys showed the nation moved into the world’s top 10 tourism countries and also boosted its ranking for U.S. foreign investment.

The United Nations World Tourism Organization (UNWTO) said Mexico had moved back into its list of the 10 most visited countries in the world. This is very good news, since tourism accounts for more than 8 percent of Mexico’s GDP. By contrast, oil accounts for only about 6 percent of GDP.

In this sense, increasingly the tourism sector becomes vitally important for the country, especially in a context of a strong dollar and weaker oil market. That is why the news released a few days ago by the UNWTO is so well received by officials and policy makers.

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Why Is Globalization Less Popular in Developed Economies Today While Latin America Seems Ready to Continue Its Embrace?
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Why Is Globalization Less Popular in Developed Economies Today While Latin America Seems Ready to Continue Its Embrace?

There are two clear groups in Latin America: those countries in favor of free trade, mainly the Pacific Alliance (Chile, Colombia, Peru and Mexico), and hopefully Argentina, and those against free trade (the rest). In particular, Brazil has no free trade agreements. It has a closed economy, and although the depreciation of its currency aids commodity exports it has little effect on the country’s manufacturing exports. The divide between both groups can be explained by the experience individual countries have had: some have benefited more than the rest.

What’s the best way to achieve consensus about globalization with diverse interest groups as you tried to do in Mexico in the 1990s?

Free trade can be asymmetric in its distribution of benefits to the general population, and public policies should accompany free trade to make benefits more symmetric for all members of the soci-
ety. “Globalization imposes restrictions that have to be addressed with the adequate public policies.” As an example, Mexican states like Aguascalientes, Queretaro and Guanajuato (just to mention a few) have invested considerably in education and its population is generally in favor of globalization. In contrast, states like Oaxaca, Guerrero and Chiapas (among others) have done little investment in their human capital and are thus generally less in favor of globalization. Public policies matter and education should be a top priority to achieve consensus and for the general population to share the benefits of free trade. At a national level, Mexico now produces more engineers per capita than the U.S. (0.93 per 1,000 inhabitants vs. 0.75).

What’s the fix for the strong and sometimes distortive capital inflows that come with globalization?

I see three components. One: having a balanced budget that gives you the flexibility to have a small deficit or surplus when necessary. Second, a truly independent central bank that can adjust monetary and exchange rate policies to affect liquidity when necessary. Third, a flexible labor market in which it is relatively simple to hire and fire workers and in which compensation is based on productivity rather than being mainly fixed. It is also recommendable to have adequate public policies in place such as unemployment insurance for the general population to avoid the negative effects of such flexibility.

What can make immigration more acceptable in developed economies where many unskilled native workers are suffering from low wages?

An emergency training program for adults, handled at the municipal and state levels, in order to make it easier for them to either get employed again or to increase their labor income, would be one example. It is crucial to get the private sector involved in this process so that schools teach the skills that are actually demanded by the market. Mexican cuisine is a great example of the benefits of globalization, so in Mexico what food or drink would you point out to your kids as an example of the way they also benefit from globalization?

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