Mexico is internationally renowned for many things: mariachi music, its beautiful beaches, historic ruins, soccer, tequila, and exquisite food that makes your taste buds explode.
But our southern brother is also widely recognized for the important role it plays in our economy. Ranked as the 11th largest economy in the world, and with 77% of the population located in urban areas, Mexico is full of soaring opportunities waiting for you.
Mexico has a modern infrastructure, which is vital to any industry. It has 74 airports, 11 of which are international; 116 ports, modern highways, and railways. In all major cities, buildings are architectural art pieces worth admiring. You can find the highest quality services, and have access to high speed internet, reliable mobile services, and other utilities with ease.
Mexico has a growing middle class, which is currently developing and getting stronger. Currently, almost 50% of Mexican households belong to the middle class, and it’s grown 60% in the last 15 years (source: http://mexiconewsdaily.com/news/mexicos-middle-class-47-of-households/).
During Peña Nieto’s presidency, Mexico has signed partnerships and alliances with many countries, including Peru, Colombia, and Chile. These agreements, added to the NAFTA, signed in 1994 have made of Mexico one of the most important commercial destinations for industries such as agribusiness, technology, franchising, housing and construction, automotive, transportation, education, environmental and energy sectors.
The government has reinforced the economy and created measures to favor competitiveness, all of which creates a favorable environment for foreign companies to consider opening a subsidiary in Mexico.
Another aspect the Mexican government has improved is safety. It continues to make an important effort to eradicate organized crime. Although there are definite “danger zones” to avoid, Mexico is not the “dangerous” country depicted in 90’s movies, but only one who’s actually been in the country, and done business in it, may truly understand how far this somewhat common perception is from reality.
The business culture is open to U.S. goods and services. Mexican businesspeople, in general, are well-educated, and most of them are bilingual. More than 115,000 engineers graduate every year in Mexico, surpassing Canada, Brazil, Germany, and the UK.
Labor cost is very competitive in Mexico. Compared to China, famous for its low-cost, Mexican wages are 20% higher. Still, it’s significantly more cost-effective because of its closeness to the United States, which lowers transportation costs significantly.
Last but not least, Mexico is a country full of natural resources. It’s the world’s second largest producer of silver, and one of the most important producers of copper in the world. The country favors activities related to renewable energy and biotechnology. Not to mention all the tourist destinations, archeological sites, breathtaking beaches, and exuberant mountains that make this country an ideal option for new hotels and other touristic projects.
Although the government could rethink and modernize some of the current rules and regulations, Mexico is a very attractive option for burgeoning businesses that want to either lower their manufacturing costs by moving the whole operation to Mexico, or take advantage of all the benefits this wonderful country offers by opening a subsidiary in cities like Queretaro, Puebla, Toluca, Monterrey, and Guadalajara, among many others.
If you’re looking to expand your business by opening a subsidiary, you should consider Mexico as the ideal destination for your future plans.
Talk to a seasoned and knowledgeable business advisor about your expansion plans to Mexico, to guide you through the process and show you the way to financial success. Let this colorful country embrace you! Oh, and, might I recommend the mole de olla and tacos al pastor?…