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Guadalajara and Monterrey: The Mexican Cities Leading the Fourth Industrial Revolution

Guadalajara and Monterrey: The Mexican Cities Leading the Fourth Industrial Revolution

Silicon Valley has developed into a very expensive, fiercely competitive, and highly concentrated sector during the past ten years. Due to these circumstances, businesses started looking for chances in other areas, one of which was Latin America, more specifically Mexico.

The pandemic has benefited the decentralization of innovation hubs in major Latin American cities (such as Buenos Aires, Bogotá, and Mexico City), as well as the digital transformation of businesses, remote work, and the expansion of e-commerce, with startups now based in many cities, from Argentina to Colombia, according to executives consulted by Bloomberg Línea.

Mexico's responsible economic, financial, and commercial policies, which work to expand the domestic market, are the foundation of the country's economic success. For example, Mexico’s economic development strategy includes increasing financial access, promoting private investment in key industries, raising investment from the government, trading relations with other countries for the global value chain.

As an emerging global player in the economy, Mexico has a Foreign Direct Investment of $29.3 billion placing 19th in the World Export Ranking.

According to data from LAVCA, the Latin American Association for Private Equity Investment, 2021 was an incredible year for Mexican entrepreneurs. Companies secured more than $5 billion in private equity investment, a 128% increase over 2020. As venture capital grows, so do the startups that have started to appear outside of Mexico City, the nation's capital, and the location of many major enterprises.

In addition to the capital, two other important cities—Guadalajara, Jalisco and Monterrey, Nuevo León—are the locations of a significant number of startups and companies.

Mexican Silicon Valley: Guadalajara

Guadalajara has emerged as a center for development, research, and innovation in highly specialized technologies. Since the mid-1990s, companies like IBM, General Electric, Hewlett-Packard, Oracle, and Motorola settled down in Guadalajara. 

For a while, Guadalajara grew as a manufacturing hub for technological products, but this changed in the last decade when it was able to position itself as a city of innovation. The city has developed into a modern metropolis with a strong digital ecosystem, is a gem of the Latin American software sector. 40% of Mexico's IT industry is in the state of Jalisco, and 650 specialized businesses there offer 100,000 jobs to locals.

Industrial Capital of Mexico: Monterrey

Monterrey is Mexico’s industrial capital, as large industrial corporations like Coca-Cola, FEMSA, and Cemex have their operational centers in this city. It is exceptionally well positioned for international entrepreneurship, as it is close to the US border, specifically to Texas.

Manufacturing in Monterrey offers several benefits such as cost savings due to lower labor and operational costs, access to a skilled workforce with expertise in various industries, strategic location that provides easy access to North American, South American, and Asian markets, and well-developed infrastructure.

Monterrey's business-friendly environment, with support from local government agencies and industry associations, makes it an attractive destination for foreign companies looking to establish or expand their operations in the region. For example, the launch of Monterrey’s Digital Hub, the first digital transformation ecosystem in Mexico in which companies, academic institutions, entrepreneurs, and digital talent co-exist in an environment that seeks to revolutionize organizations and communities using technology and digital business models.

Guadalajara & Monterrey: Mexico's Industrial Giants

Guadalajara and Monterrey have emerged as the industrial capital of Mexico, with their infrastructure, favorable business environment, and skilled workforce.

They have become magnets for foreign investment, particularly in the high-tech and manufacturing sectors, which has fueled their economic growth and development. As Mexico's "Silicon Valleys," these cities are rapidly transforming into hubs of innovation, research, and development, offering a conducive environment for start-ups and established companies alike.

With their strategic location, access to global markets, and commitment to sustainable development, Guadalajara and Monterrey are poised to remain major players in the Mexican economy for years to come. 

Using a shelter company like Co-Production International can offer several benefits to foreign investors. Investing in Mexico, companies can improve their competitiveness and expand their global footprint. By partnering with CPI, we will help you bringing a robust network of strategic partners and dedicated teams to get up and running. Human resources, recruitment, hiring, and compliance with labor laws fall under CPI’s Shelter IMMEX Program, which allows manufacturers to focus 100% on manufacturing while CPI handles the rest.

Mexico Manufacturing Industry News

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Co-Production International, Inc. Administrative Service Provider San Diego, California

ico flag usaUSA Corporate Office
Ph: 619.429.4344 / 855.480.0837
8716 Sherwood Terrace
San Diego, CA 92154 USA

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Ph: 855.480.0837
Blvd. Tomas Alva Edison 14022
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Av. Benito Juarez 1102 Col. Centro
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Monterrey, Nuevo Leon 64000, Mexico