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Expanding, Relocating or simply Starting a new manufacturing facility in Mexico

Strategic Locations for Setting up Manufacturing in Mexico

Mexico’s strategic manufacturing locations offer you unparalleled benefits for your site selection; proximity, ease of doing business, cultural alignment, quality workforce, low cost labor, supply chain and logistics. 

Guanajuato: The Home of Volkswagen and Auto Parts Manufacturing

Guanajuato is located in El Bajio manufacturing region in Mexico and is also part of the “Golden Triangle” that includes Mexico City, Guadalajara, Jalisco and Monterrey, Nuevo Leon. Guanajuato’s manufacturing sector accounts for 38% of its annual economic output, ranking it as the 6th highest in Mexico.

Guanajuato’s main manufacturing industries include automotive assembly, auto parts, textiles, and food processing. With over 578 international manufacturers employing over 627,430 people, including sixty-six Japanese companies that employ over 25,000 people. Japanese companies have invested over $3.9 billion dollars in the state.

Guanajuato is located in the automotive assembly and auto part manufacturing heart of the El Bajio region. Between GM, Mazda, Honda and VW, Guanajuato produces more than one million motors a year with 90% bound for export. In 2010 Volkswagen announced a $550 million-dollar investment in a new plant in Silao, Guanajuato. In 2013, an additional $118 million dollars and the hiring of 150 more direct employees. The VW Silao plant produces 330,000 motors annually.

Quick Stats for Guanajuato’s Manufacturing Industries
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Industrial Real Estate in Guanajuato

Guanajuato has more than 42 industrial parks, including, Guanajuato Puerto Interior (GPI) in Silao, Parque Tecno Industrial Castro del Río in Irapuato, Parque Opción in San José Iturbide, Las Colinas in Silao, Guanajuato Centro Industrial in Irapuato and Parque Amistad in Apaseo el Grande.

Industrial real estate in Guanajuato averages $0.39-$0.44 cost per square foot for Class A. Industrial parks often offer 1-2 months free rent, tenant improvement allowances and developer TI amortization. At the end of the 3rd quarter of 2018, over 599,644 SF of industrial space was under construction along with 2 million SF available.

Infrastructure & Logistics

Guanajuato has 1,085 kilometers of railways. It also has one international airport and one domestic, allowing manufacturers access to 80% of the Mexican market, 70% of industrial establishments, 70% of international business, and 70% of exports.

Spotlight on: American Axle & Manufacturing
and the Richard E. Dauch Institute for Education & Development

In 2018 with an investment of $128 million pesos, the Richard E. Dauch Institute for Education & Development opened in Guanajuato. American Axle and Manufacturing donated the space occupying 11,000 square meters in the FIPASI Industrial Park next to their facility. The center anticipates training 4,000 students a year in machining, assemblies, safety, robotics, controls, material management, maintenance, and welding. Both the public and employees of American Axle and Manufacturing in Guanajuato can study and train at the new center, and partnerships are being made with local education institutions. American Axle and Manufacturing is a Fortune 500 company with more than 25 thousand employees in 17 countries and more than 90 facilities.

“For over a decade Honeywell has no longer seen Mexico as a manufacturing hub, but as a center of engineering and product development.”

“Our medical device customers were telling us that the availability of off-shore, low-cost labor would be a criterion for vendor sourcing going forward.”

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