How does infrastructure in Mexico impact manufacturing operations?
With recent announcements to invest in infrastructure in Mexico, manufacturers can look forward to improvements in the systems that support their production.
Mexico is well connected through a national network of highways, with special focus on roads to export routes to the U.S. There are also many international airports and a rail network connecting Mexico to multiple border cities.
Mexico has the presence of large and professional development groups, from international firms to local players. These groups play a pivotal role in the industrial development. Options range from new “green” buildings to ones a bit older and basic.
Mexico´s state-owned company, CFE (Comisión Federal de Electricidad), is the largest generator and distributor of electricity in Mexico. There are international firms that support the generation of electricity through solar, geothermal, thermoelectric, and other technologies, and CFE distributes. Electricity rates vary by state and are adjusted on a monthly basis.
Mexico has natural gas infrastructure in most industrial cities, with presence of national and international firms that support the generation and distribution of natural gas.
water and sewage services in Mexico are managed by state-owned companies. The rates vary by state and are adjusted on an annual basis.
Voice/data infrastructure in Mexico is one major competitive advantage. There is a large presence of national and international firms that support voice and data services nationwide at competitive costs, with special focus in industrial areas for high-speed, satellite, and fiber optic options.
Prodensa´s site selection analysis will narrow down the strategic options for the establishment of your manufacturing facility, allowing a more in-depth comparison of regions and/or cities, which will allow you more detailed pricing data. Additionally, a feasibility study will validate the business case, operating structure and cash flow, supply chain, and eligibility of programs.
Author: Carlos Loyola, Business Development Director
Interested in learning more about how to operate a manufacturing facility in Mexico? Download our free E-Book Manufacturing in Mexico: A Start-up Checklist. Be on the lookout for the launch of the full version, coming soon!
- Section 1 – Mexican Operations
- Section 2 – Operational Compliance
- Section 3 – Key Milestones and Checklist
- Section 4 – Transition to Mexico
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