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Market Profile
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Chihuahua has a solid position among Mexico’s secondary manufacturing markets and has experienced stable economic growth in the past ten years. Chihuahua has not historically been the first location for companies moving into Mexico, but rather a growth market for maquilas with a track record of manufacturing in Mexico. Much like Mexicali is an overflow market for Tijuana, Chihuahua has followed on the growth in Juarez and has been to able grow when the major border market begin to get overcrowded. The only real drawback of Chihuahua is its distance from the border, raising transportation costs and limiting the ability to get immediate support and services.
- Chihuahua is the national leader in exports, employment and value added for the manufacturing industry in Mexico. The strategic location of the state, the skilled and qualified labor force, the business environment and its state of the art infrastructure, allows FDI companies to achieve outstanding profits.
- Unemployment rate (2000-2009)
- 4.5% annual average State GDP growth (2003-2009) - 1% annual growth rate FDI net inflows to the State (2000-2009) - Chihuahua, was ranked # 4th in FDI, representing $12,458.5 MDD State Exports in millions of dollars(2004-2010) - Chihuahua, was ranked # 2nd in exports, representing $201,452 MUSD.
- INCENTIVES
- The government offers incentives in relation to payroll taxes, training programs, and assistance in the procedures for meeting requirements at three levels of government (federal, state, and municipal). Additional incentives can be negotiated, depending on the location of the new project, type of manufacturing activity, and the creation of jobs. The incentives subject to negotiation include: infrastructure works, fees with the State Public Registry, and construction permits.
- STATE OF CHIHUAHUA INCENTIVES
- Exemptions of up to 50% in payroll taxes (In Chihuahua and Cd. Juarez)
- Exemptions on public register of property and commerce fees
- The State Service of Employment provides manufacturers with training programs that cover the minimum wages for a period up to 60 days, as well as medical services for the workers and their families
- Reduction of municipal taxes and fees
- Recruitment and human resources are also provided
- Sectors offering special opportunities: Electronics, Automotive, Aerospace, Software, Biomedical, Agroindustrial, and Mining
- Fiscal Incentives
The State of Chihuahua offers a tailor-made incentives program, granted on a case by case basis and depending on factors such as the creation of new jobs, the investment and degree of technological sophistication. These programs may include fiscal and non fiscal incentives, at federal state and municipal level.
- Government programs to support the sector
State Level Fiscal Incentives Selection Recruitment Training by the CENALTEC, National Employment Service, EPEX Hiring City Level Federal Level License Permits and others ProMexico Construction License Ministry of Economy CONACYT Others
- Services to the investor
Specialized Strategic Information for decision making Agendas B2B meetings Support for a soft landing with industrial private developers Real estate and shelter programs State, City and Federal Incentives Proposal Incentives Ground Breaking Ceremony Plant Inauguration
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