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The giants 6. of the industry 14. GROW BEYOND Competitive and sustainable Leaders in 12. infrastructure Opportunities for Mexico Industrial Real Estate industrial real estate

WE DESIGN AND OPERATE WORLD CLASS COMPREHENSIVE REAL ESTATE

DEVELOPMENTS THAT PROVIDE CUSTOM-DESIGNED SPACES TO ENSURE 26. THE SUCCESS OF YOUR OPERATION. Mexico, destiny 18. for productive investment

Stories of SuCcess 25 • AGM Automotive begins expansion in Mexico INDUSTRIAL 34. • A German in Tlaxcala ‘Plug & play’ facilities PARKS • Bombardier in Querétaro 38. Government 45 REAL ESTATE INNOVATION trusts attract LOCATIONS investors IN MEXICO Hunting for specialized 46. professionals 100

Alejandro Junco de la Vega President and CEO Gerardo Lara Advertising Director MILLION SQF Rodolfo Junco de la Vega Vice President Roberto Castañeda Deputy National Editor DEVELOPED Lázaro Ríos Chief Managing Editor Miguel González Circulation Director Ricardo Junco Garza Chief Advertising Officer Jorge Arturo Padilla Deputy Business Editor real estate development in Mexico Ignacio Mijares Chief Financial Officer Luis A. Soto Digital Content Editor Alejandro Junco de la Vega E. Chief Digital Officer Guillermo Toledo Art Director SEPTEMBER / october 2016 René Delgado Executive Editor Jorge Obregón Production Manager GRUPO REFORMA Roberto Zamarripa National Editor Edgar Espinosa Chief Technology Officer [email protected] René Sánchez Business Editor Ricardo Del Castillo Deputy Art Director Leonardo Valero International & Soft News Editor Roberto Segura Circulation Manager 01 800 00 FINSA @finsaintl info@finsa.net /finsaintl www.finsa.net Juan Carlos Pulido Special Editions Manager / Marcela Díaz de Sandi Advertising Coordinator Published and printed in the workshops of: Consorcio Interamericano Elena Ramírez Commercial Editor / Fabiola Sánchez Editor / Zusett Santa Ana Commercial Art de Comunicación, S.A. de C.V., Av. México-Coyoacán No. 40, Col. Santa Cruz Editor / Design / Anain Gutiérrez Design / Lourdes Otero Translation Atoyac. Delegación Benito Juárez, México, D.F. 03310 Iraí Meráz Advertising / 5255-5628-7878 ext. 1847 / [email protected] Printed by: División Comercial 5255-5628-7503.

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giantsof the industry

In Mexico Industrial Parks are more than surfaces geographically delimited and designed for the settlement of industrial facilities, given the opinion of Pablo Charvel Orozco, President of the Mexican Association of Industrial Parks (AMPIP), there are a kind of ‘plug and play’, industrial developments which companies arrive to establish without concerns to begin working in suitable conditions of location, infrastructure, facilities and services, and with a permanent administration for its operation.

Pablo Charvel Orozco AMPIP president Photographer: Roger Méndez.

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oreign investors that arrives Mexico to visit industrial parks become surprised, because they find interesting to find first world developments, which have several AMPIP in certifications and industrial plants of world class, said numbers F in interview the president of AMPIP. “Industrial parks have been gradually evolving, they are no longer maquiladora or assembly plants, they´ve become incentives that attract an industry increasingly 68 corporate members: specialized, which has generated a real technology trans- private developers, ference through the different regions of the country and investment funds, REITs a real bond between the academy and the industry; it is and State Government Trusts. beginning to create a virtuous circle in which workforce is better prepared, salaries are better and we are attract- ing more industry because we have trained engineers 250 industrial parks for the work,” remarked Pablo Charvel Orozco. in 24 states. In this context, he declared that investors also have noticed that there are great talents in the Mexican la- bour. “Lots of the industries are installing their research and innovation institutes in Mexico, and that is cause of 2,500 tenants. much pride for us, and for that, from industrial parks we try to provide all the necessary facilities. The future is to invest in innovation and technology to continue being 2 million jobs. competitive and successful and that industry zone sur- vives against all the challenges of the 4.0 manufacture, of the robotization and of the automatization.” 23 million sqm It is worth mentioning that the AMPIP works with con- of constructed buildings. tinuous improvement and better practices programs to of- fer competitive industrial parks and standardize them with Source: AMPIP world tendencies, for example, through certifications as Authorized Economic Operator Standard (AEO), its indus- trial parks will be the first ones at a global level to obtain it.

“In AMPIP we attract the industry and we are an en- abler to provide optimum conditions for investment in order that investors feel confidence. Great investments are made in their fabrics and industrial plants, that is why we provide optimum conditions and warranties so that they feel comfortable and secure to come into Mexico,” noticed Charvel Orozco. He added that the advantage of settling in an industri- al park is that generally these are developed in regions connected to highways and sometimes with railroad sidings and they are located near areas of population where workforce can be found, technical schools or universities. “An industrial park is a limited area that has services and quality infrastructure, I mean streets well paved, with excellent signaling, as well as tanker trucks entry and exit. In this limited area that we call industrial parks we receive fabrics, maquiladora in- dustry or logistics warehouses that settle to have the benefits, to obtain all permits required and also to avoid conflicts with population areas, because the industry is Photo: IAMSA. not mingled with households.”

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Pablo Charvel is convinced that all cate of industrial parks has been reduced and more de- Industrial Mexico has the potential to develop Principal industrial velopers are building speculative buildings to bring new industrial parks. However, he noted markets in Mexico investments. The majority of the regions have a minor parks in Mexico that each area of the country blos- stock of ten percentage of vacate.” soms according to their character- Companies that have settled in Mexican industrial parks istics. “There are areas that have 1. Monterrey 10. Reynosa in their majority are of American and Asian origin, al- developed more in the country, for 2. Cuautitlán /Tepotzotlán 11. San Luis Potosí though there is also presence of Germans, Spaniards and example, northern border region 3. Ciudad Juárez 12. Mexicali entities from other parts of Europe. And although big cor- was first promoted, when maquila- 4. Tijuana 13. Aguascalientes porations as automobile companies are owners of its prop- doras started to arrive and over the 5. Guanajuato 14. Chihuahua erties, lots of their suppliers generally choose to lease. years the regions have been gradu- 6. Guadalajara 15. Puebla AMPIP president concluded saying that, the creation 7. Querétaro 16. Matamoros ally evolving based on the kind of of industrial parks generates virtuous circles in differ- 8. Toluca 17. Nogales companies that arrives. After North ent regions of the country, in consequence, social and 9. Saltillo / RamosArizpe 18. Nuevo Laredo Photo: Prologis. American Free Trade Agreement tourist development, as well as more economic flow in (NAFTA) began the development different levels. Source: AMPIP / Jones Lang LaSalle of north zone to the center, in Mon- “We as industrial developers actively participate in terrey, Guadalajara an all Bajío, all the economic development of the cities and communi- around metropolitan area because ties where we settle. The success stories are along 250 in the domestic market there is also industrial parks that we have registered in our Associa- a great demand of industrial areas,” lease an industrial plant and invest in tion, which have cooperated in the development of the A little bit explained AMPIP president. what they can do best, in its produc- communities; are long-term real estate businesses with He affirmed that, the alliance be- tion, or its machinery and we become a high impact in the national economy.” of history tween AMPIP and ProMéxico has his partners in real estate.” We are very proud been strategic to promote Mexico AMPIP president explained that The history of industrial parks in Mexico dates back to the sixties, that Mexico has as an attractive country for the in- in all the industrial parks exist dif- at the end of the ‘Bracero Program’, a temporary labour agreement dustry as a manufacturing platform ferent schemes to sign up clients. celebrated with United States in 1942 that allowed Mexican citizens excellent industrial for the world. “We also make a “When we talk about built-to-suit, to work legally across the border to meet the lack of local labour who work of direct promotion in foreign for example, it means tailor-made, a attended the Second World War. However, by the end of the War, parks that can be agencies, but it all depends on the plant or an industrial building with workers were replaced by soldiers who returned home. ambition of each industrial park, of certain requirements of height, of In order to solve the unemployment problem that was gener- compared with any its characteristics, but we all make resistance in the floors and set to ated in the northern border at the end of the ‘Bracero Program’, park in the world. promotion outside and inside to install its production lines. For ex- through the National Border Program (PRONAF) maquiladoras, attract industries. At the begin- ample, sometimes they require cer- domestic and foreign companies operating under a tax regime Pablo Charvel Orozco, ning, we convince them to invest in tain wide of the plant, certain per- which allows them to import inputs free of tariffs for assembly, Mexico, then in certain State, then centage destined for offices or with transportation or repair of goods destined for exports. AMPIP president. in certain city and subsequently in capacity for special installations, Given the demand for infrastructure for the installation of one of our industrial parks.” then we make a tailor-made, exactly maquiladoras, PRONAF included the creation of the first indus- Furthermore, he observed that the as industry requires. In this scheme trial parks in the country with the support of public resources strategic location, Mexico´s trade we can lease or sell the plant, sell through Nacional Financiera. To such an extent that by 1966, agreements with different countries the land and build the plants ac- aroused the first industrial park in Ciudad Juárez under the and the access to qualified labour at cording to their necessities.” leadership of Jaime Bermúdez, founding partner of the AMPIP. competitive costs are some of the He admited that currently, the According to the AMPIP, the advantages of an industrial park principal incentives that generate Mexican industrial real estate mar- in Mexico can be understood from three criteria: it sits on pri- Monthly cost the investment of Mexico´s indus- ket is attractive, consequently many vately owned land with permits required for the operation of per rent by region: trial parks. “They also come for the companies are arriving. In this industrial plants and distribution centers; has urban infrastruc- logistics, to produce in maquiladora context he recommended indus- ture and with water and discharge; electricity, telecommunica- schemes; companies come and set- trial developers to have a corporate tions and natural gas options, rail, water treatment plant, fire NorTH: 4.00 USD per m2 tle to know the different markets of building to have something to offer station and other ancillary services; and finally it operates un- 2 the region.” to clients, because some do not like der internal rules and has an Administration which coordinates Bajío: 3.76 USD per m The decision to lease or buy in an to wait for it to be built but they de- security, the proper functioning of infrastructure, promotion of 2 CentER: 4.26 USD per m industrial park in the country de- mand industrial plants that allow real estate and general management procedures and permits be- pends on the internal strategy of each them to start operations immedi- fore authorities. Source: AMPIP / Jones Lang LaSalle company, said Pablo Charvel Orozco. ately. “Thanks to the effort and the FINSA Matamoros Norte. “Sometimes the company prefers to recovery of the economy today va-

www.ampip.org.mx

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Bisacquino referenced Mexico’s strong trade relationships that give exporters duty-free entry into 45 countries, and that’s valuable for Mexico. By combining this trade ad- vantage with lower-cost land and a skilled, eager workforce, Mexico is For real estate developers attracting auto and aerospace manu- facturing facilities, among others. in Mexico seeking lessons “These type of facilities are especial- learned from stateside ly advantageous for Mexico and the industrial facilities, recent opportunities for real estate are im- mense, particularly for logistics and success in the U.S. relating building facilities that are in close to industrial facilities has proximity with one another with ac- cess to major transportation routes.” centered one for Mexico The publication Americas Quar- commerce structures. terly noted that 35,000 new air- planes will be needed to meet world industrial demand over the next dozen years -and each Boeing 747, for example, real estate is composed of 6 million individual pieces. That’s boasted the country’s aerospace component manufactur- ers to approximately 300, shorten- Lessons learned ing the supply chain between the Mexico-based facilities and U.S. air- from U.S. plane assembly plants from Seattle to Mobile, Alabama. For real estate developers in Mexico seek- large heating, venting and air conditional Adding extra benefit to the regions ing lessons learned from stateside indus- systems (HVAC) and material handing ex- where manufacturing facilities are trial facilities, recent success in the U.S. re- change (MHE), Bisacquino added. expanding, the nearby communi- lating to industrial facilities has centered “Capacity is no longer being measured ties are benefiting with infrastruc- on e-commerce structures. While Mexico in square footage alone, but also in cubic ture, schools and amenities to sup- does not have as robust an e-commerce space and ‘throughout’ of materials, that port the workers’ families. delivery system as the U.S., Mexican de- measure the number of units that can velopers would be wise to focus on the au- be processed at a facility over some pe- The industrial real estate tomation taking place in these facilities as riod of time. Conceptualizing and build- it is only expected to expand to traditional ing vertically, to take advantage of cubic linkage across North warehouse and distribution centers over space, can be more cost effective than America is stronger than iven Mexico’s close proximity to tageous for real estate developers in the coming decades, said NAIOP presi- building in a traditional horizontal man- the U.S. -the countries share 1,989 Mexico and businesses and retailers dent and CEO. ner,” he explained. ever, thanks in part to miles or land border- and the U.S. in the U.S., as product originating in Among best practices, to accommodate Beyond industrial facilities, there’s the re-shoring and near- consumer’s penchant for goods- Mexico can reach U.S. customers in automation, floor slabs must be perfectly tremendous value in investing in ‘hu- consumer spending comprises 68 less than one week, as opposed to level in order to enable sensitive equipment man capital’ in today’s knowledge-based shoring of manufacturing G percent of the U.S. economy- de- three or four weeks from Asia. Natu- to operate effectively, and they also must economy. Technology makes it possible and assembly, as well as veloping and operating industrial rally, the close location between the be able to handle extra loads from mezza- for an innovator from Mexico to part- real estate facilities in Mexico is an two countries reduces transporta- nine stacking that goes up three and four ner with a U.S. business and a Canadian the surge in e-commerce outstanding opportunity, declared tion costs of actually moving the levels. Ceilings are being built to 36 and 40 investor, and this is a true reflection of a and consumer demand for Thomas Bisacquino. goods from manufacturing to con- foot clear heights to accommodate mate- global economy where ideas, capital and “Near-shoring, which is defined as sumer, increases speed to market rial handling equipment and mezzanines, goods traverse, concluded NAIOP presi- fast delivery, said Thomas the transfer of business processes to and lowers inventory costs. In short, and roofs must also be stronger to support dent and CEO. Bisacquino, president and companies or facilities in a nearby it is a valuable partnership that pro- CEO, NAIOP, the Commercial country, where both parties expect vides jobs, infrastructure and in- Photo: NAIOP. to benefit from geographic proxim- vestment in Mexico that helps meet Real Estate Development ity, and cultural, linguistic and eco- consumer demand in the U.S.,” ex- Thomas Bisacquino Association. nomic linkages, is especially advan- plained NAIOP president and CEO. NAIOP president and CEO. www.naiop.org

INDUSTRIAL | REAL ESTATE DEVELOPMENT IN MEXICO 13 14 Competitive AND sustainable infrastructure Photos: AMPIP / Vesta.

Industrial Park 1,400 ha Customs and Strategic Bonded Warehouse Railroad Connectivity with two Rail Companies (KCSM & Ferromex) In Mexico, nearly two decades the Mexican Standard for Industrial Parks was created, a voluntary standard whose objective is to evidence that industrial parks in the country World Class Infrastructure comply with regulations, the feasibility of services, the design and the world-class of the infrastructure.

INDUSTRIAL | REAL ESTATE DEVELOPMENT IN MEXICO www.interpuertomty.com [email protected] T. +52 (81) 1477.9024 / 25 16 INDUSTRIAL | REAL ESTATE DEVELOPMENT IN MEXICO

ince 1999 and with the validation is that the majority of the companies that settle in these Photo: Fibra McQuarie. of the Secretariat of Economy, the industrial parks is light industry, so they are not neces- Best practices Mexican Association of Industrial sarily high water consumers but they do require water Besides renting out a plant, companies that decide Parks (AMPIP) actively promotes services including bathrooms,” explained the executive to settle in industrial parks in Mexico carry out their S the certification of industrial real es- director of AMPIP. operations in a business-friendly environment with tate developments under the Mexi- She mentioned that there are four versions of the Mex- the community in which best practices have been can Standard for Industrial Parks. ican Standard for Industrial Parks. “The Federal Law in implemented. To fulfill the mission of promoting the In interview Claudia Ávila Con- Metrology and Standardization stipulates that every five development of competitive and sustainable indus- nelly, executive director of AMPIP, years, at least, the rules should be updated because often, trial parks, AMPIP encourages the implementation said that “the Mexican Standard technology or other regulations are constantly changing of best practices in environmental protection so that for Industrial Parks came up al- and they need to be updated. Nowadays, we are in the companies operate in a suitable environment that al- most 20 years ago in response to the last phase of the 2015 version, for the final version is re- lows them to develop their business efficiently. concerned of industrial develop- leased and be the one to operate with.” “A few years ago the customers that seek to rent out ers members AMPIP that the Gov- Claudia Ávila Connelly emphasized that the spirit of plants not only asked for a strategic location and a ernment differed the projects that the rule is to give certainty to foreign investors, espe- plant at a competitive lease rates per square, but also comply all standards of the projects cially in regulatory issues, which can be complex. “The that the park had environmental protection policies, of those which does not necessar- industrial parks with a certification gives that certainty, which was previously not a criterion. That forced ily comply the standards, because and that is the great feature of an industrial park in Mex- them to think in generating evidence of compliance at that time the government was ico, because besides the technical part of infrastructure, of policies to protect the environment,” affirmed the supporting industrial parks through also they are located near major routes of foreign trade, executive director of AMPIP. Nacional Financiera with non-re- which facilitates the access to markets and transport and payable funds as a public policy to therefore all the logistics”. promote jobs and strengthen the It is worth mentioning, that the firm CIEN Consul- industry. It was necessary to define tores, with which the AMPIP has established an alliance, Since 2013 AMPIP has established the ‘Green Indus- in a consensus basis criteria, and the is the only Verification Unit accredited by the Mexican trial Park Recognition’ (PIV) that distinguishes those most feasible option was to create a Accreditation Entity (MAE) to make an audit for the Advantages of industrial developments that take actions to reduce water con- voluntary basis, because in Mexico compliance of an industrial park under the Mexican sumption, energy and polluting the environment emis- there are two types of standards, Standard for Industrial Parks. The first step to obtain the parks in Mexico sions and that demonstrates that they have taken action mandatory, which are the NOM, and opinion of compliance is to request verification service. and established commitments for continuous improve- voluntary which are the NMX.” In Mexico, an industrial park is a ment. Also, it offers members the recognition ‘Sustain- Although the standard was up- able Industrial Park’ (PIS), which has a wider scope, as dated in 2011, it is noteworthy that delimited area of land that complies it is given only to developments that have comply three on Friday February 19th, of this year the following main criteria: criteria: ‘Green Industrial Park Recognition’, certifica- was published in the Official Journal tion under the Mexican Standard for Industrial Parks of the Federation (DOF) the ‘Project NMX-R-046-SCFI-2011 and Environmental Quality Stan- to update the Mexican Standard for ONE. It is settled on private land and has dard, issued by PROFEPA. Industrial Parks NMX-R-046-SCFI the required permissions for the operation On safety matters, the AMPIP promotes a culture -2015 for public consultation for a of industrial plants and distribution centers. of safety through the implementation of international period of 60 days. This new version safety standards. In these best practices, stands out the consider the advancement of tech- services of physical and patrimonial safety standards, nology, in telecommunications and TWO. It has urban infrastructure, as well and the use of technologies and procedures that al- safety matters, as well as issues re- as water and electricity, telecommunications lows to establish cross-linking systems to connect all lated to the environment and quality and with options of natural gas, rail, water functional areas. The aforementioned is a prelude to of infrastructure treatment plant, fire station and other eventual certification OEA or ‘New Scheme for Cer- “In an appendix, the Federal At- tified Companies (known in Mexico as NEEC) for in- additional services. torney for Environmental Protec- dustrial parks and in-bond warehouses that operate in tion (PROFEPA) shared with us all Free Trade Zones. Finsa, two industrial parks in Nuevo regulation that a park must comply It operates under by-laws and has an León; PIMSA, two industrial parks in Mexicali; Trust to become a clean industrial park THREE. of the Industrial City of Xicoténcatl with two industri- Administration that coordinates the safety, evidencing execution practices of al parks (including one of Vesta) in Tlaxcala and one of Photographer: Roger Méndez. environmental protection, it is not the good functioning of the infrastructure, the Industrial WTC in San Luis Potosí are the first ones a mandatory criteria but a voluntary the promotion of the buildings and the general that are in the process of obtaining certification NEEC, one. And another point that changes Claudia Ávila Connelly management of procedures and permits revealed Claudia Ávila Connelly. the norm and its worth mentioning, Executive director of AMPIP with government authorities.

Source: AMPIP www.ampip.org.mx

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Baja California Sonora Chihuahua

Coahuila Industrial parks in mexican land Nuevo León The CEO of ProMéxico noted there are some country´s leader States that are developing industrial parks in Me Mexico, which stands out for its in- frastructure, skilled labour force, geo- graphical location and provision lev- els, as you can see them on the map.

Tamaulipas xi Zacatecas Guanajuato Querétaro co, Hidalgo destiny JaliscO for productive Estado de México Puebla investment According to Francisco González Díaz, Chief Executive Officer of ProMéxico, the commercial opening of the mexican market since the signature of North American Free Trade Agreement (NAFTA) in 1992, the changes in the macroeconomic policies in the country and the amendment to the Foreign Investment Law were some determining factors that encouraged the creation of more industrial parks, which have played an important role in Mexico’s integration to global value chains as they collaborate for the establishment of new operations in our country.

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exico is a key supplier for the USA in sectors such as automotive, aero- space, electronics, medical devices, to name a few. “In this regard and as a relevant manufacturing country, M industrial parks get a major meaning, as they are the center of operations for all manufacturing companies op- erating in Mexico”, said in interview the Chief Executive Officer of Pro- México, Francisco González Díaz. The CEO emphasized, that the Photo: AMPIP. industrial parks developed in Mex- ico, have achieved to comply the re- quirements of foreign investors that structure (roads, ports, house-hold schools, hospitals, seek for a location with easy access industrial areas and hotels); with geographic location to consumers, with talent available (connectivity and logistics facility) and with a business- (qualified and diverse labour force) friendly environment (stable economy, reliable legal sys- and that provides competitive full tem, political stability, swiftness in procedures and regu- costs (labour force, transportation, lations, tax and patrimonial security). services and real estate); with sup- “This has allowed that industrial parks businessmen, pliers presence and efficient infra- mainly from Mexican Association of Industrial Parks (AMPIP), more easily foster Mexico as an investment destination.” He said that an industrial park in Mexico has the required permits to operate industrial plants and distribution centers; offers in one place and in an integrated way, legal, administrative and operational certainty, promoting efficiency in supply chains, reduc- ing costs and risks of assets and inventories; it operates under internal procedure and has an administration that coordinates security, the proper functioning of in- frastructure, promotion of real estate and general man- agement of procedures and permits before authorities. Likewise, he added that these industrial developments are relevant in the value chain (production) and supply chain (distribution centers). “Mexico is characterized for having world-class in- dustrial parks with international certifications one of them Authorized Economic Operator Standard (AEO), harmonized standard to the Customs-Trade Partnership Against Terrorism (C-TPAT) in United States that al- lows to certify quality standards and high level security, features that a country the size of ours in manufacturing should have and which makes it an attractive for invest- ment,” declared Francisco González Díaz. In fact, ProMéxico collaborates with AMPIP to at- tract investment to our country, because from the per- Photographer: Larissa Sánchez. spective of the officer, industrial parks are part of the competitive advantages of Mexico because they offer Francisco González Díaz world-class infrastructure, “that is why we should have CEO of ProMéxico. no qualms about its promotion.”

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Industrial parks in Mexico are part of the competitive advantages of the country by providing world-class infrastructure, so we should have no qualm about their promotion. Francisco González Díaz, CEO of ProMéxico.

Photo: Amistad Desarrolladores Industriales.

It is worth mentioning, that companies currently set- tle in industrial parks in Mexico are manufacturing, lo- gistics and distribution multinationals mainly. Even the CEO of ProMéxico reported that the sectors where in- creased higher rates of growth can be seen are automo- tive and transportation, aerospace, agri-food, logistics and distribution, as well as electrical/electronic. “Currently, companies that have productive processes in our country do so with a long-term plan, they seek for efficiency, just-in-time and just-in-sequence pro- cesses. This has generated distribution centers, mainly in automotive, aerospace, medical equipment, chemical, pharmaceutical and food processed industries. The clus- ters in this sense mean a universe of companies working closely together and that given its location and proximity favor the reduction in travel times and production costs. The regions that have a development in certain sector, widen its coverage capacity and maintain a symbiotic relationship that encourages growth in diverse entities,” explained Francisco González Díaz, who has extensive experience in the promotion of Mexico abroad, occu- pying several posts from 2002 to date related to that Photo: Fibra McQuarie. endeavor, among them Ambassador of Mexico to the Federal Republic of Germany.

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With a clear vocation for the agroindustry and metal-mechanics besides its Competitive unique logistics, Michoacán has a huge industrial boom and proper business to generate strong and growing investment opportunities, allowing its position as one of the more productive regions in the country and First Factors: Special Economic Zone in Mexico. Infrastructure A clear example of the aforementioned, is the Lázaro Cárdenas Port, considered as the preferred option entry and contact with Asia, standing and logistics out as the most important port in the country, being the only port in Mexico protected that can receive vessels up to 165 thousand tons of The CEO of ProMéxico declared displacement with 18.00 meters of deep at its access channel and 16.50 that in a country with manu- meters of deep in the main dock for turning. facturing vocation as Mexico, is fundamental to have an adequate communications and transport in- frastructure not only to take out the merchandise for the storehouse and manufacturing locations, but to transport it through sea, air and land trunk routes in the country to their final destination. “An industrial park without the appropriate routes Prologis Park Izcalli. will not have the intended effect.” In this context he stated, that one of the ways to encourage the develop- In response to the demand of productive sectors, and to promote ment of Mexico is through the cre- therefore, has improved competitiveness, connectivity the establishment of companies and emerging industries, the State Government, through the Trust Industrial Parks of Michoacán, provides ation of infrastructure, as this gen- and logistics facility of our country. “Multimodal cen- a structured network of industrial parks located within the Industrial erate jobs and trigger the country´s ters where diverse means of transport favored alterna- Logistic Corridor Michoacán, which has access to the most important economic growth. “Without a doubt, tives to move cargo more efficiently. Modernization, markets of Mexico, North America southeastern and Asia, positioning the a country that has an adequate level expansion and construction of new airports provide the State in an appropriate national and international investment context. of infrastructure lowers the cost of possibility not only to expand capacity but to become transport of the merchandise, becom- an important logistic node.” Michoacán is and has been an important member of NASCO (North ing more competitive. This statement On highways and ports matters, it stands out that American Strategy for Competitiveness). NASCO is a trilateral network can be seen in some of the northern the Transístmico Corridor, which connects the Gulf of of private and public entities that focus on ensure a safe and efficient and center states”. Mexico to the Pacific, reduces distances, costs and open exchange of goods and services between Canada, the United States He indicated that, investment new channels that favor the development of the region, and Mexico. Because of these relationships and other important in this area is a strategic issue for while the expansion of the four main ports in Mexico operational efficiencies, the Port of Lázaro Cárdenas is able to deliver federal government, as established and the generation of new ports followed by the need ocean containers to five ports in the USA within 72 hours. by the National Infrastructure Pro- to meet the demand for more places to introduce and Our industrial parks are under the most legal certainty and are fully gram 2014-2018, focused on gen- export cargo in the country. equipped with electrical supplies, sewerage and drainage networks, erating infrastructure, transport He mentioned that another important issue is the access to natural gas, optical fiber and wastewater treatment plants, logistics platform and modern com- phenomenon of ‘reshoring’ that derived from an in- plus an interesting package of incentives to promote productive projects munications to promote greater creased in production and in manufacturing jobs in the generating decent jobs, investment and economic development. competitiveness, productivity and USA, industries that were previously installed in China Michoacán is a great place to do business. We invite you to visit our industrial economic and social development. as a matter of costs have returned to North America, parks located strategically, each one has its own characteristics, which Francisco González Díaz added which generates higher foreign direct investment flows makes them leverages of development; besides being true investment that, the infrastructure generated to Mexico. opportunities and an important gateway to international markets. since the celebration of NAFTA in The CEO of ProMéxico emphasized that this public the mid-nineties has resulted in organism -that in june 2017 celebrates a decade of exis- The commitment of the State Government is to continue working to the creation of industrial buildings, tence-, plays an important role in attracting foreign di- create better living conditions for local people and we are convinced warehouses, ports, railways and rect investment into Mexico, as well as in the formation that an effective way to accomplish that is to consolidate investments to roads, which have boosted activi- of clusters by generating value chains in procurement, stimulate employment and ensure the growth opportunities, translated ties, related to supply chains and, technology and training of professionals. into social justice for all.

www.promexico.gob.mx Andador Plaza 39, Morelia Industrial City. Michoacán, Mexico. Call +52 (443) 315-0703 / 315-0756 INDUSTRIAL | REAL ESTATE DEVELOPMENT IN MEXICO www.fipaim.gob.mx 26 INDUSTRIAL | REAL ESTATE DEVELOPMENT IN MEXICO

customers is the land for the construc- tion of the plants, or lease them an ex- isting industrial plant, which they call speculative industrial buildings. “The next scheme is to make a built-to-suit, which is making an industrial plant for the needs of the company, or a built- to-suit turnkey, which is an industrial plant even more equipped.” Rafael McCadden commented that nowadays one of the new demands of the companies is that the largest industrial parks have access to the railway and that it has an intermodal terminal. In an interview, Cristina Torres, director of Real Estate Advisory of KPMG, considers that in Mexico all industrial buildings are triple-A. “If you’re going to analyze any developer FINSA Maquilpark, Reynosa, Tamaulipas. or FIBRA, all the available plants are triple-A. If I have a company of what- ever, in Mexico I can find a plant that Prologis Park Apodaca. complies with quality requirements and I can plug it in a week, which is basically the scheme ‘plug and play’.” Regarding the issue of leasing in- the parent company to lease to companies in Mexico. dustrial plants she declared that So at a security level for investors is great. The level of “what industrial developers and in- quality in the investment can be overcome in Mexico. I vestment funds are doing in Mexico realize that in this country we are in first league, your is amazing. How do they lease? I do investment is safer here.” not lease anyone if I do not have a Gonzalo Robina, president of the Mexican Association of ‘Plug play’ guarantee of the parent company, Real Estate Investment Trusts (AMEFI) and the deputy di- which can be in Denmark or wher- rector general of Fibra Uno, pointed out that to industrial facili&ties ever, but I’m asking guarantees from parks in Mexico arrive world-class quality companies to

esides looking for skilled and specialized workforce, strate- Private industrial developers, investment gic location, infrastructure, connectivity and access to dy- funds, Real Estate Investment Trusts namic markets, transnational corporations demand indus- (FIBRAS, or REITs) and state governments’ trial spaces to operate in Mexico. Tailored-made buildings B (built-to-suit), sale or lease of industrial buildings, accord- real estate trusts offer a wide range of ing to the requirements of companies, is what developers of industrial parks in the country offer. industrial buildings ‘Class A’ in inventory, The director Industrial & Logistics of Colliers Inter- or tailor-made constructions for sale national Rafael McCadden said that to settle on the right industrial park multinational companies require certainty or lease, as well as shelter services for regarding services and land, plus they will arrive to a place the establishment of new enterprises in where there will be electricity, water, sewage, security, con- nectivity, manpower and technical schools. He added that Photo: Prologis. industrial parks in Mexico. in the industrial market the most basic scheme offered to

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establish in the long term. “The vast majority comes to install a manu- facturing plant, whether we are the ones who make the investment from a real estate perspective, what they end up investing is in special installa- tion plants, in machinery. They are all looking for contracts of minimum 10 to 15 years of life.” He noted that due to the demand for industrial parks, the FIBRAS are investing in properties that have a practically guaranteed return. “The market is set out there, requesting this type of property, and then somehow it is something that has helped us.” According to Luis Gutiérrez, presi- dent for Latin America for Prologis, Industrial Park FINSA El Saucito, Chihuahua, Chihuahua. industrial developers are agents in charge of providing first-class infra- structure to manufacturing compa- nies and logistics distribution cen- “If you are in an industrial park and or less the pace we have is between 100 ters. “In that sense industrial parks there is more space is easier to unfold and 150 million dollars of investment in have become attractive as topic and operations within the same locations, markets, and this should give us about register good growth compared but also when you decrease. Many see two to three million square feet per year, with other type of properties, for ex- the advantage that if they were own- which is a growth of seven to 10 percent ample, commercial, office and resi- ers then they would have a little stiff- of our total.” dential buildings. What industrial ness to be able to increase or decrease Sergio Argüelles González, president parks have is that they are faster to their operations, or change for some & CEO of FINSA, said his company do, then they have less risk and be- reason the city or the space.” focuses on the existence of available sides, customer´s permanence is Gutiérrez declared that the current product in the market with first class higher, and in that sense the risk is portfolio of Fibra Prologis is made infrastructure that complies with in- lower than in other sectors.” up of just over 33 million square feet ternational standards and at competi- He indicated that the trend is the of leasable industrial area. “We keep tive prices to facilitate the beginning of lease of industrial buildings, provid- doing more developments as we operations of its customers in Mexico. ing flexibility for company’s growth. rent the ones we already have. More “We care that our developments have spaces designed for people who work within them, such as kindergartens, health clinics and recreational areas. Furthermore, the design of our parks and industrial buildings is based on the creation of value for users, both in the architecture and in the operation, which translates into significant savings for our customers, plus we have installed so- phisticated security systems and access control,” remarked Argüelles González. He added that the strength of FINSA al- lows them to access global capital markets to support leasing programs and expan- sions. In the next three years FINSA will double its portfolio of leases, that today amounts two million square meters. “We Prologis Park Los Altos, Jalisco. will continue growing and consolidating

INDUSTRIAL | REAL ESTATE DEVELOPMENT IN MEXICO 30 YOU SEE AN in Mexico. In the next three years we will be announcing eight new developments, INDUSTRIAL focusing on the markets of northern, central and Bajío, and strengthening our FACILITY. presence in the Northwest.” In an interview, Raúl Murrieta Cum- mings, former undersecretary of Infra- structure of the Secretariat of Commu- We see four decades of helping global companies nications and Transportation, concluded that industrial parks cannot operate establish successful operations across Mexico. without the strengthening of the na- tional road infrastructure, so that in this administration will be end 52 high- ways, 80 works of modernization and expansion road, all with a logistically sense. “You can have an industrial park with equipment out of the ordinary from the fences inward, but if you do not have good connectivity, good ac- cesses, proximity routing, etc., then the Pacífico IIndustrialndustrial CCenter,enter, Prologis.Prologis. park is not going to take off.”

He reported that the Secretary of Communications and Transports Gerardo Ruiz Esparza, has entrusted them to In Mexico, industrial parks incorpo- He added that VESTA developments make Mexico a world-class logistics center, which means Sustainable rate best practices of environmental are world-class modern buildings, having better roads that leads to better ports, that coexist protection to be more attractive to built with eco-efficient standards and with trains and lead to airports. investment and evidence its com- strategically located in the industrial Marco Medina Zaragoza, FIBRAS analyst of the Bank Ve industrial petitive advantages. Therefrom, in corridors with access to the largest por Mas, emphasized that the development of industrial addition to offering industrial build- market in the world and in a country buildings in Mexico goes hand in hand with the logistics parks ings designed to meet the needs of with abundant skilled labor. topic. “They have all the necessary elements if new invest- advanced manufacturing and dis- The president & CEO of FINSA, ments arrive. For example, the case of Amazon, that re- tribution, real estate developers as commented that they have modern- quires certain elements to carry out its operations. I think From site selection, engineering and design to construction, VESTA provide industrial buildings ized their portfolio on several occa- the FIBRAS have shown their ability to be able to adjust.” AMISTAD’s decades of experience is infused into every project. built with industry standards and sions because that want their build- green building manual developed by ings to obtain LEED environmental Our collaborative culture and consistent, reliable track record has the German agency DEG. certification, in fact, they built the built our business. Referrals and repeat business help define our “When we acquired land reserves first LEED Gold certificated building we look for the best locations and in the state of Nuevo León. Also, they success! To schedule a tour of industrial locations in Mexico, call to be able to provide all the ser- look for the operation of industrial 800-994-9596 or email us at [email protected]. vices. Our developments include parks to be certified as ‘Environmen- measures to streamline water tal Quality’ by the Federal Attorney consumption, collection systems for Environmental Protection (PRO- and reuse of rainwater, optimized FEPA). “Thanks to this we have the energy performance of the plant, recognition of financial institutions, LED lights system for outdoor and we have managed to sustain an lighting and renewable energy annual growth rate of 20 percent in for electricity production, among recent years. And, most importantly, others,” explained in an interview more than 50 percent of the growth of Lorenzo D. Berho, operations ex- the portfolio comes from our existing ecutive vice president of VESTA. customer base and their references.” Photo: ColliersColliers International.International. real estate development Construction logistics amistadmexico.com 800-994-9596 INDUSTRIAL | REAL ESTATE DEVELOPMENT IN MEXICO

AMID20814-03-InteriorAndExterior-9.5cmx24.7cm-vert.indd 1 8/25/16 5:43 PM 32

In a context in which airports have changed the scope The new role of its services, beyond their role as centers of connectiv- ity for passengers, companies like Grupo Aeroportuario of the airports Centro Norte (OMA) have chosen to turn their air ter- minals development centers to stimulate and strengthen The Aerotech economic activity in the states where they are located, Industrial Park allowing them to attract various sectors of the economy and integrate into real estate complexes that offer a wide is another range of services, in this case industrial parks. industrial space In an interview, Héctor Cortés, director of Diversification and New Businesses of OMA, reports that a competitive ad- located a few vantage for companies manufacturing of high value is the steps from an logistics of land-air communication, used to add value and differentiate industrial parks of the airports of others. airport in 140 In 2012, OMA signed a strategic alliance with VYNM- hectares of land, SA for the construction and operation of OMA-VYNM- SA Aero Industrial Park, the first industrial park within where there the OMA airports. “The adjacency of the OMA-VYNM- are still about SA Aero Industrial Park with the Monterrey Interna- tional Airport and with the bonded area of the Customs 35 hectares Section of the airport itself favors the logistics activity, available. air and land cargo as well as other operations of the companies to be installed in this industrial develop- ment,” mentioned Cortés. He added that currently OMA’s airports are under evalu- ation for the possible development of industrial parks, so that the potential of each destination will be measured. to the needs of each client and lease,” The Aerotech Industrial Park is another industrial explained in an interview Larisa San- space located a few steps from an airport in 140 hectares doval, Sales & Marketing manager of land, where there are still about 35 hectares available. of Aerotech Industrial Park, located “We have speculative buildings that accommodate com- next to the Intercontinental Airport panies that need spaces from 2,700 to 15,000 square me- of Querétaro, in the municipality of ters. We also have the option of building a space tailored Colón. She stated that the Aerotech Industrial Park has achieved to gen- erate success stories thanks to its ser- FINSA Nuevo Laredo. vices. “By having two partners spe- cialized in the industrial part, on one hand Abitat Construction Company that provides services in the con- struction of industrial and commer- cial spaces; and on the other hand, American Industries, which provides support to manage all business pro- cesses, from human resources to lo- gistics service, except production.” Larisa Sandoval affirmed that the purchase price is high but is offset with the costs. Besides, she said that rent is a good choice for companies that prefer to initially invest on their equipment’s or use the money to improvements in their processes, that does not necessarily have to do with the industrial plant.

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Stories of Stories of success success AGM A German Automotive begins expansion in Mexico in Tlaxcala

In October of this year, the he increase of customers and the Likewise he commented that, his little over a year -April 2015- of being inaugurated the production of the automotive indus- investment in Querétaro was not plant of the German Company Kathrein Mobilcom Mex- plant AGM Automotive, LLC try in Mexican land are some of the subject to incentives, they plan to ico in the Industrial City of Xicoténcatl I (CIX) in Tetla begins operations, in a surface factors that attracted the Aerotech approach the State Government to The automotive industry de la Solidaridad, Tlaxcala, has generated 300 jobs. of 5,000 square meters of Industrial Park to investment five determine some incentives already A “In the next two years, a very important part of our busi- T million US dollars of the American managed by other companies, this in Mexico will have a ness, dedicated to the production and assembly of anten- Aerotech Industrial Park, company AGM Automotive for the in order to maintain global level nas for the automotive sector, will be developing as part located in the municipality development of its plant and addi- competitiveness of its plant. significant growth in the of our operation, whereby, it is contemplated to expand tional projects contemplated for the James Stanley informed that AGM our investment and provide greater job opportunities and of Colón, in front of next two years. Automotive gave its first steps in next five years as a result growth,” declared John R. Capobianco Mucci, executive Intercontinental Airport “Regarding the decision to estab- Querétaro in November 2015 with of the new installation and operations director of Kathrein Mobilcom Mexico. lish in the Aerotech Industrial Park the preparation and installation of Among the factors that motivated the German company of Querétaro. this was motivated by a detailed machinery and equipment; howev- of major assemblers to invest around 26 million euros in CIX, stands out the study of all available parks and for er, it was since January of this year support of the State Government, as well as the person- the commitment of the owners of when we began to hire staff to train in the Bajío zone and in alized attention received since its first approach to the this industrial park to provide an ex- them in order to produce for its the center of the country. entity. “Another important factor was the follow-up that AGM Automotive cellent construction service, as well customers starting August 2016. has been given to the development of the project, the as the development of a competitive AGM Automotive, manufacturer John R. Capobianco Mucci, incentives, competitive advantages and the relationship in Querétaro industrial park with the best infra- of electronic components and LED between both authorities and with government agencies structure of worldwide quality. And lighting systems for the automotive executive and operations director and educational institutions involved, which together in this sense, our experience has market will be in the Aerotech In- of Kathrein Mobilcom Mexico. have supported us in the consolidation and success of 5 million US dollars been excellent,” said James Stanley, dustrial Park with seven other ten- our project in Mexico,” pointed out Capobianco Mucci. AGM Automotive will country general manager of AGM ants: Brose, Magna, Nachi, Certus, He also expressed that the industrial parks in Mexico invest in its plant Automotive, LLC. Belcorp, WireMasters and Airbus have all the necessary resources, considerable instal- of Aerotech Industrial Park. He revealed that the expansion Helicopters. lation costs and labour; excellent location in the geo- in Mexico has been considered by It is worth mentioning that, Grupo graphical map that provides access to the most impor- Ralf Leist, chief operations officer American Industries, Abitat Con- tant markets and, above all, quality and dedication to 80 direct of AGM Automotive. “He has a very structora and the local company Im- their workforce, “which I think, are important aspects clear global strategy that requires pulsora Queretana form the strategic to the success of any project.” and indirect jobs the opening of two more industrial alliance that in September of 2012 He concluded saying that, the rise and consolidation of will be generated in Querétaro plants in Querétaro for other lines opened the multisectorial Aerotech the automotive sector and other industries in Mexico will of product during the next year.” Industrial Park of 140 hectares. become topics of influence for the decision of companies 50,000 interested in locating their operations in this country.

square meters www.agmautomotive.com is the plant area. www.kathrein.com

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Stories of chain and therefore, our final prod- ucts,” commented Pilar Abaroa. success She added that the continuous growth of Mexican aerospace indus- try is one of the reasons why new companies could invest in the coun- Bombardier try and choose to settle in industrial parks. “Likewise, in 2020 Mexico could occupy the tenth position of the ranking of countries that are part of the sector. In this regard, we con- in Querétaro sider that it exist a great potential for the installation of more international companies, as well as for the growth of local providers, which benefits of this boost, by positioning as providers The story of success ts macroeconomic indicators, its Tier 2 and Tier 3.” infrastructure, industrial experi- of Bombardier in Mexico began in ence, trained human resources, its 2006, when the company decided same time zone as corporate offices to expand its manufacturing in Bombardier Canada, as well as I North American Free Trade Agree- global mark. After evaluating ment (NAFTA), are some of the different countries, they finally reasons that motivated the Cana- dian company to settle in Mexico decided to settle in Mexican in 2006, revealed in interview Pilar Since our arrival in 2006 lands, in Industrial Park El Abaroa Álvarez, head of commu- nications and senior spokesperson we have maintained a Marqués in Querétaro. of Bombardier Aerostructures and Engineering Services Mexico. continuous commitment Likewise, she said that they choose with aerospace industry the State of Querétaro, located in the north part of Mexico City, because it development in Mexico Canadian offers industrial quality, education, infrastructure, trained population that today is reflected in presence and politics of economic develop- the strengthening of this ment, as well as a great commitment of authorities with aerospace industry important sector. 1,600 employees development. “These considerations generated in Querétaro. motivated us to settle in Industrial Pilar Abaroa Álvarez, head Park El Marqués and subsequently in of communications and senior Querétaro´s Aerospace Park.” spokesperson of Bombardier Although for now Bombardier has 500 million dollars no expansion plans to other States industrial parks. “In our case, within invested in Mexico. Aerostructures and Engineering of the country, its spokesperson de- our new industrial plants in Queré- Services Mexico. clared that all entities in which aero- taro we led, design, manufacture, as- space industry is developing, as Baja semble and machine major metallic 5% growth California, Sonora y Chihuahua, to structures and of composite mate- mention a few, provide comparative rial, as well as electric harnesses for in aerospace industry advantages for the settlement of any the different aircrafts that form our in Mexico expected company of the sector. product portfolio. In that way, we by Mexican Federation Also, Abaroa Álvarez agreed that carry on a great number of activities of Aeroespace Industries the industrial drive in Mexico is that allows us to improve our inter- (FEMIA). what has encouraged the invest- nal processes, generating efficien- www.bombardier.com ment of companies as Bombardier in cies that benefit all the productive

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Photo: Industrial Development Trust of Aguascalientes. Government tr u sts at T ra c t investors

The foreign companies that have turned lthough emerged in the 70s, nowadays government trusts continue to promote foreign direct investment to to Mexico to settle in any of its industrial its parks, industrial plants and industrial warehouses, zones not only have the option to at a juncture where it offers investors certainty in land approach to private developers but also ownership in the feasibility of the basic services, in oper- A ating permits and in the quality of buildings and internal to government trusts created in the 70s infrastructure as well as a nearby location to principal with the purpose of generating territorial trade routes, educational centers and suppliers in the production chain. In an interview, spokesmen of four reserves where industrial plants government trusts expose what are the competitive ad- and industrial warehouses have been vantages and facilities they offered to investors to estab- lish in industrial parks located in Aguascalientes, Estado constructed according to plans, projects, de Mexico, Michoacán and Tlaxcala. work programs and specifications proposed by the settlor.

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Pro-Environment Industrial Zones In Aguascalientes

In 2015, revenues from the sale of industrial land in Aguascalientes reached 25.7 million pesos. This amount is the result of the com- Photo: FIPAIM. mercialization of lots in industrial parks Chichimeco, Logistics, Au- tomotive and Tecnopolo I, accord- ed in the area of Industrial Corridor, ing to the Fifth Report of Governor in the municipalities of Aguascali- Carlos Lozano de la Torre. entes, Jesús María, San Francisco de The sale of industrial land in Los Romo, El Llano and Calvillo. Aguascalientes has occurred in a He explained that the State Gov- context where the value of the man- ernment develops nonprofit in- ufacturing production in the en- dustrial parks, “in fact all we do is tity increased 11.7 percent between get the land, to the urbanization of January and July 2015, generating what is required and sell the land at more than 103 billion pesos during a price without profit, so to speak, this period. to be able to be in the most com- It was in 1975 when the government petitive prices, which stimulates of the State of Aguascalientes created the establishment of companies in the Industrial Development Trust, industrial parks of the Trust.” with the aim to promote parks and Eduardo Vilatobá Chapa said that industrial zones which benefit the companies settled in industrial parks environment, to boost investment have grown thanks to the investment and contribute to job generation. of the Renault-Nissan and Daimler In an interview, Eduardo Vilatobá alliance, that in September 2015 be- Chapa, general director of Industrial gan the construction of the complex Development Trust of Aguascali- Cooperation Manufacturing Plant entes, declared that since the creation Aguascalientes (COMPAS), which of this Trust “industrial development in 2017 and 2018 will see the birth of has raised, creating industrial parks Premium compact vehicles of Mer- one after another. The first one that cedes Benz and Infiniti brands. was created was Industrial City For the general director of the In- and with the sale of the lands in the dustrial Development Trust Aguas- late 70s, that money was recovered calientes “is the best option to in- and the parks that we now know in vest in Mexico, the proof is the vast Aguascalientes have been created.” amount of foreign, national and lo- It is worth mentioning that the in- cal companies that have been estab- dustrial parks of the Trust are locat- lished here and have success.”

Photo: Industrial Development Trust of Aguascalientes. INDUSTRIAL | REAL ESTATE DEVELOPMENT IN MEXICO 42

Given the expectation that the installation of automo- that requirements made by corpo- Industrial City tive AUDI assembly plant in Puebla has generated, rations and entrepreneurs are an- providing auto parts companies have identified the swered faster.” potential of Tlaxcala State for the installation of their He also affirmed that given the ad- of Xicoténcatl businesses in industrial parks of the Trust of the In- vantages of infrastructure and servic- dustrial City of Xicoténcatl (FIDECIX) which manages es in industrial cities, as well as the three Industrial Cities: Industrial City Xicoténcatl I, in strategic location of Tlaxcala, its con- Tetla; Xicoténcatl II Industrial City in Huamantla; and nectivity, the experience of the work- Xicoténcatl III Industrial City in Tlaxco. force and facilities and the support Bernardo Segura Sánchez, general manager of the that the Government provides, “the FIDECIX commented that the importance of Govern- domestic and foreign investors have ment Trusts lies in the fact that they are formed by a considered enabling to invest here, group of skilled people in the administration and in consequently, automotive supplier dealing with different institutions of the three levels companies such as LEAR Corpora- of the Government, which speeds up procedures and tion, CEBI, Grupo Antolin, Clerprem, permits required by entrepreneurs. “You have a single Knipping Automotive, among others, contact which is the Trust to whom you expose your have been settled making a positive Photo: FIPAIM. needs, who together with the Ministry of Economy and impact on employment creation.” Development is in charge of making arrangements so The FIDECIX is part of the Mexi- can Association of Industrial Parks (AMPIP), plus it is certified with the Mexican Industrial Standard FIDEPAR upgrade for Parks and with the Environmen- tal Quality Standard, issued by the logistics sector Federal Attorney for Environmen- tal Protection (PROFEPA) and it is in the process of obtaining the New Scheme for Certified Companies Jones Lang LaSalle and Coldwell Banker’s studies (NEEC). “We are 135 kilometers far reveal that the Metropolitan Area of Mexico is one from Mexico City and that opens of the regions with the highest growth potential in up a wide scene of possibilities, we industrial parks with logistics vocation. From Tlal- have brought some companies from nepantla to Huehuetoca, on the border of Estado de Chalco and Iztapalapa because Mexico with Hidalgo State, it is where the largest logistics was difficult for them to number of industrial parks linked to the logistics handle, from here, they handle the field is concentrated. entire distribution network faster In Estado de Mexico, the automotive, chemical- and in a more reliable way, since the pharmaceutical and food and beverage sectors have road network and logistics opens an developed logistic’s dynamism of the region. As an extraordinary scene to companies,” example, just to mention that to the Industrial Com- added Bernardo Segura Sánchez. plex Santa Margarita, in Ixtlahuaca, have received investments from India and which are beginning to open new market niches in the downtown area of the country, including the export of chemical-phar- Photo: FIPAIM. maceutical products. “There is now a mature market in terms of large processing companies. We have developed in the www.fidecix.com automotive sector suppliers, Tier 1, Tier 2 and Tier 3, and this supplier chain is very consolidated to- www.parquesindustrialesags.org day the sector in the downtown area and has en- fidepar.edomex.gob.mx abled specifically in the Valley of Toluca to have an installed capacity of skilled labor,” emphasized in www.fipaim.gob.mx an interview Víctor Hugo Colorado Reyes, general director of FIDEPAR. Precisely, to boost industrial growth through construction, purchase and sale of

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own industrial developments or through strategic alliances with private investors, the Trust for the TRUSTS Michoacán: new center Development of Parks and Industrial Zones (FIDE- PAR) in Estado de Mexico was created in 1982, that of industrial development currently commercializes industrial parks Jilotepec and Santa Bárbara. Also, in alliance with the Artha Capital Fund develops the Arco 57 logistics platform 106 hectares covering project in Estado de Mexico which covers about 717 the Automotive Logistics Park, hectares distributed in two polygons: North-San The State of Michoacán is not only known for its already Augustine and South-San Francisco. Also, plans to newly created industrial park in famous Lázaro Cárdenas Port, but it is also distinguished develop new industrial parks in the municipalities Aguascalientes, close to the airport. for its 1,242 kilometers of railways, 13,000 kilometers of of Nezahualcóyotl, Chimalhuacán, Nicolás Romero road network, four airports, prestigious universities and and Texcoco. “They are smaller projects, of approxi- business opportunities in sectors such as agroindustrial, mately 10 hectares, industrial plants of 800 meters information technologies, metal-mechanical and suppli- for smaller companies that require distribution of 3 industrial cities er. Also, it is emerging as a state with logistics potential peripheral areas into selling point,” declared Víctor constitute Trust of the Industrial thanks to its strategic location and its connectivity with Hugo Reyes Colorado. multimodal corridor NASCO, a transportation network It is worth mentioning that FIDEPAR is also part City of Xicoténcatl. of 2,500 miles that join Mexico, the United States and of AMPIP, works with two development models, one Canada and connects more than 71 million people and focused on real estate developers and the other one intertwines countless companies. focuses on final customer that demands industrial Michoacán also has a structured network of indus- buildings on lease. 717 hectares trial parks that are located inside the Industrial Logis- covers Arco 57 project tics Corridor of Michoacán, which has access to key developed between FIDEPAR markets of Mexico, the southeastern United States and Asia. Through Trust of Industrial Parks of Michoacán and Artha Capital Fund. (FIPAIM) the State Government has provided infra- structure to industrial parks and has made acquisitions of land reserves for development of sustainable urban areas, agro-industrial parks, of logistics and operation 111.54 hectares services, as well as centers of technological and re- covers the Small and Medium search development. In an interview, César Erwin Sánchez Coria, general Industry Park in the municipality director of FIPAIM, revealed that as an incentive to in- of Lázaro Cárdenas, Michoacán. vestment, prices of industrial parks heritage of Micho- acán are subsidized by the State, which allows to access costs of 70 percent below market. Also, it has a vast land reserve of over 1,866 hectares heritage of the Trust, intended solely for the develop- ment of agro-industrial and industrial parks, logistics and operation services, as well as technology and re- search development centers to enable the economic en- couragement and employment generation through dif- ferent business schemes allowed by the operating rules of this Trust, such as the latest schemes of the new Law of Public Private Partnerships,” commented the general director of FIPAIM He noted that, with the designation of Lázaro Cárde- nas Port as the first Special Economic Zone the goal is the creation of a new center of industrial development that creates jobs, develop value chains and trigger the demand of local services, fostering an exceptional busi- ness environment to attract investments.

Photo: Industrial Development Trust of Aguascalientes.

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In recent years, in a context of industrial dynamism linked to the automotive sector, particularly, American, European and Asian investors interested in establishing in Mexico not only demand competitive cities that offer quality of life, education, housing, infrastructure, connectivity, even, sustainability, but also that provide specialized human resources that meet the requirements of the global market.

n Mexico you can find specialized talent in development, design and even, in much more specialized functions of the industry at a very good price and a very good quality,” “I said Joao Nunes, executive director in Michael Page, brand that belongs to the Specialized Recruitment Consulting Firm PageGroup. “What we´ve seen in recent years is an investment in industrial projects in the automotive sector much more developed at a technologically level, where they see Mexico, not only as a country of manufacture or as a country where it is cheaper to pro- duce, they see it as an engineering country,” added Joao Nunes. However, the executive director emphasized that companies should promote technical training in order to strengthen their teams to meet the challenges of the coming years. He revealed that the automotive companies that are coming to Mex- ico are those that have done a good job of market research, as they have achieved to identify clearly what are the opportunities and the chal- lenges in the field of specialized hu- man resources. “The vast majority is already starting to hire and we at Page Group today are supporting major projects in the automotive industry in the search for talent.”

INDUSTRIAL | REAL ESTATE DEVELOPMENT IN MEXICO 48

The executive director in Michael have understood the importance of Page declared that engineers cur- the Mexico’s location and the oppor- rently in Mexico earn 20 percent tunity that Mexican market could of- more than in other Latin American fer them through their workers. countries. “But why is it interesting “The dynamism of foreign inves- to come to Mexico if today it costs tors is such, that our office in Mon- me 20 percent more an engineer terrey today is the most profitable here than in any other country? The in Latin America. Over the past issue is that there is much more en- two years in Saltillo, Coahuila, and gineering offer in Mexico, this 20 Monterrey, Nuevo León, a very im- percent more than in Latin Ameri- portant development is being seen, ca is still 30 or 40 percent less than there are a plenty of promoters of in Europe and 10 or 15 percent less local industrial parks that are in- than in the United States. That creasingly specializing to be able means that Mexico is still extremely to receive these foreign investors,” In Mexico there is an area competitive not only for the price as commented Rémy de Cazalet. such, but for the quality that comes In this context, the Senior Direc- of opportunity with talent that with the investment in the recruit- tor of PageGroup Mexico indicated is increasingly professionalized. ment of this resources type.” that one of the key challenges for In an interview, Rémy de Cazalet, the industry is that more mexican I think we have to keep working Professionals from senior general director of PageGroup workers speak English. “I think Mexico and Central America, noted that is an area of opportunity that to accompany this ongoing growth. the classrooms that at his office in Monterrey, Nuevo is being heavily worked on in recent León, which opened three years ago, years. When a foreign investor ar- Rémy de Cazalet, senior general director Regarding the development of specialized human re- they have registered a growth of one rives in Mexico, he needs that its di- of PageGroup Mexico and Central America. sources in the classrooms, Manuel Molano, deputy direc- hundred percent, which means that rectors can go to the US or Europe tor at the Mexican Institute for Competitiveness (IMCO), the number of foreign investors has to be trained, and this requires to indicated in an interview that it is important to keep the increased, especially because they speak English”. universities connected to the cutting-edge knowledge relevant for the aeronautical and automotive industries. José Sergio Ledesma Martinez, president of the Fed- eration of Colleges and Professional Associations of the State of Querétaro (FECAPEQ) stated that although today there are no schools for all industries, they are working to create them, so that professionals covering strategic areas such as food and beverage, automotive, appliance and aerospace can be indentified. He declared in an interview that through FECAPEQ schools related to strategic sectors of the economy are focusing on continuously updating, combined with the work of each school to let the industry know about what are the areas of expertise that distinguish them and how they reinforce them. “Almost all schools have a continuous professional education standard that in- volves identifying and sharing knowledge, experience Rémy de Cazalet with all colleagues. With universities we would be Senior general director looking at those bases precisely to establish the need to constantly review the plans and programs of study.” of PageGroup Mexico For Manuel Molano it is important to get rid of the and Central America (left) stereotypical idea that the mexican worker is useless. “You have to ask automotive companies where their Joao Nunes best talent is and probably much of their best talent will Executive director be in Mexican plants. Labor productivity in these in- in Michael Page (right) dustries I believe it has remained constant and in many cases has grown.”

Photographer: Roger Méndez. 50

Mexican border for many factors, “If a place makes sense is because From North but I think nowadays, we have the the politics is good, because the possibility of giving talent similar human capital that arrives there to Bajío to U.S. but more competitive at cost is good, because the legal system level. So, many North American works, because the city has good Senior director of PageGroup Mex- manufacturing companies are mov- quality of life, and so on. In the case ico and Central America said that ing their production gradually on of the States of the Bajío, Govern- northern and central Mexico are this side of the border, things that ments as Aguascalientes, Querétaro prepared for the arrival of U.S., Euro- 10 or 15 years ago did not make for and Guanajuato have their clear- TUBERÍA INDUSTRIAL DE PEXA pean and Asian investors, who come lack of knowledge or perhaps for darks on public security issues, but to establish their new factories and lack of preparation of Mexican tal- in general they have done it quite industries. “If we go to the border ent, today it is no longer a pretext.” well. Bajío States were not in the RAUPEX DE REHAU we can found industrial parks they The deputy director at the IMCO picture to be that achieving, before are increasingly proposing facili- reported there are cases of success the signing of NAFTA they were ties at very competitive prices, with in States such as Querétaro, Aguas- Mexican, ultra-catholic, agrarian, talent and synergies with the com- calientes, Guanajuato and San Luis traditionalist societies, where it panies. The advantage proposed by Potosí who have understood the did not seem to be any comparative the north of the country is that it business of industrial parks, as they advantage to be industrial and look can receive many investors, but also have connected them to the cities what have happened. This proves suggest the expansion of land to and have developed a diversified that if you improve institutions, de- those who are already present. What industry that has begun to demand velopment is possible,” concluded Mexico offers are huge spaces where qualified personnel. Manuel Molano. they are providing all kinds of ser- vices around these industrial parks. At an educational level, even not only new universities that will give talent but international schools that will receive the children of foreign work- ers,” admitted Rémy de Cazalet. He also stated that from PageGroup they can see that a need for talent is an area of opportunity in Mexico, where some regions have special- ized more than others in specific sectors, for example automotive in the Bajío and Puebla; and manufac- turing industry in the north. “In the border parts of the country there are advantages that a company can offer to its Mexican employees by giving the opportunity to study or live in the U.S., that attracts a lot of talent.” He mentioned that the cost is one of the competitive factors that have encouraged the installation of for- MANUEL MOLANO - Tubería de PEXa grado industrial, para aire - Método de unión mecánico y electro soldable eign companies in northern Mexi- comprimido, agua helada y agua caliente - Diámetros de 20 a 160 mm (IS) y de 3/8” a 2” (IP) co. “Every time we have more cus- Deputy director at the IMCO Photographer: Roger Méndez. tomers in Page Group who choose - Pared interior lisa - Rango de temperatura de-50°C a +95°C - Flexibilidad - Soporta presiones de hasta 232 psi @ 20°C - Operación silenciosa (trabajo constante) - Ventajas hidráulicas: mayor velocidad - Disponible en varios colores www.fecapeq.org.mx www.imco.org.mx www.michaelpage.com sin generar ruido para identificación rápida en sitio - La protección UV provee una excelente resistencia a la radiación solar

Celaya 01 (461) 618 8000 • Monterrey (81) 8121 0130 • Panamá (507) 830 5257 • 01 800 91 73428 INDUSTRIAL | REAL ESTATE DEVELOPMENT IN MEXICO [email protected] • www.rehau.com.mx 52 S. PARQUES INDUSTRIALES REFORMA z Lunes 26 de Septiembre del 2016