The economic and industrial sector growth in Mexico that is expected as a consequence of the nearshoring strategy corresponds to one reading of the current panorama, but there is another: the diversification of the industrial area and the capacity of the available labor force, which put the country in a position to dispute leadership in technology-related industries.

This happens with the industrial parks in Guanajuato, which has given rise to the activity of a competitive and highly productive automotive cluster, in conjunction with Bajío, and it also happens in the case of Querétaro, where the activity is more focused on the aerospace and technological.

At the same time, the north of the country also aims to attract activity from other countries; Thus, the authorities of Nuevo León indicated their willingness to offer the American electric car manufacturer Tesla an exclusive lane for crossing the border if the company decides to start operations in that state, which would further boost automotive manufacturing, including production of electric cars in the region.

Given the possibilities, the Chinese company CATL (Contemporary Amperex Technology), the largest manufacturer of batteries for electric vehicles in the world, is also considering options to establish a plant in the country that will allow it to supply Ford and Tesla. CATL points to Ciudad Juárez, in Chihuahua, and Saltillo, in Coahuila, as possibilities.

In the northern regions of Mexico and the Bajío, the industry’s current logistics chains and suppliers facilitate the establishment of new assembly companies. Different manufacturers have boosted the activity.

Automotive assembly plants in the northern part of Mexico

• KIA (Nuevo León)
• Stellantis (Coahuila)
• General Motors (Coahuila)
• Ford (Sonora)
• Toyota (Baja California)

Automotive assembly plants in the Bajío region

• General Motors (Guanajuato)
• Mazda (Guanajuato)
• Toyota (Guanajuato)
• Honda (Guanajuato)
• Nissan (Aguascalientes)
• Infiniti (Aguascalientes)
• Mercedes-Benz (Aguascalientes)
• BMW (San Luis Potosí)
• General Motors (San Luis Potosí)

Inputs for the aerospace industry, axis of growth in Querétaro

Querétaro is considered one of the main production centers for aeronautical components in the world, with around 70 companies according to official state information corresponding to its 2021 Economic Yearbook, among them:

• 38 Tier 1, Tier 2 and Tier 3 aerospace and manufacturing companies (specializing in components for aircraft manufacturing)
• 12 support companies
• 10 educational institutions
• 7 research centers
• 3 public entities

Among the main manufacturers that contract services or have operations in the entity are:

• Airbus
• Bombardier
• Aernnova
• Safran
• GE Aviation
• Embraer

Expand investments, necessary

The Mexican Federation of Aerospace Industry (FEMIA) and Querétaro authorities affirm that it is necessary to encourage foreign investment and local manufacturing to add the aircraft industry to the push for automotive electrification. They are betting on attracting European investors and expanding the operations of those already active in the entity

The State of Mexico, thanks to the development of infrastructure and, in the Bajío region, Guanajuato, due to the training of the available workforce as a result of automobile manufacturing activities, see an opportunity for expansion in the aerospace sector. However, currently the most important developments in the sector outside of Querétaro are in Baja California, Sonora, Chihuahua and Nuevo León.

LCA works for the economic development of Mexico. For this reason, we advise companies on strategic locations that offers the possibility of accessing qualified labor. Please Contact us.