American Industries Achieves Milestone Ranking Among Mexico's Top Companies

American Industries has long been a leading provider of real estate and shelter administrative services in Mexico. This has been reaffirmed with our recent inclusion on Expansión magazine's list of Mexico's 500 Most Important Companies. At American Industries, we integrate industrial real estate and administrative shelter services to facilitate the successful entry and operation of foreign enterprises looking to start manufacturing in Mexico.

The resilience of companies like American Industries is evident in their consistent growth, a testament to their economic impact and stability. This has been fueled by several geopolitical factors, including the normalization of consumption of goods and services not considered essential, an increase in oil production and cost, and a surge in the service.

Context of the Ranking

The ranking by Expansión magazine, a leading business publication in Mexico, adds further credibility to these companies’ performance. The magazine's annual list of Mexico's 500 Most Important Companies is a comprehensive and rigorously analyzed overview of the corporate landscape, serving as a reliable indicator for investors, policymakers, and other stakeholders.

Methodology Behind the Ranking

The list aims to provide a comprehensive overview of the leading Mexican enterprises across various industries and sectors. The methodology for creating this list is both rigorous and inclusive. An open call was issued to 2,500 companies—both private and public, national and transnational—to submit general and financial information. This approach ensures that the list is a reliable indicator of the financial performance and impact of each company in the Mexican market.

Building on the meticulous methodology used to compile the list, it's worth noting some general trends and observations about the ranking. Among the largest sectors represented are assembly plants, telecommunications, energy, and automotive and auto parts, which hold the third, sixth, seventh, and eighth places, respectively. In terms of the number of companies featured, the automotive and auto parts sector ranks third, followed by mining in fourth place and assembly plants in fifth. Geographically, the majority of these top 500 companies are located in states such as Nuevo León, Jalisco, Chihuahua, Guanajuato, and Querétaro. Furthermore, the list is diverse in terms of countries of origin, with the top 10 being Mexico, the USA, Canada, Germany, Spain, France, the United Kingdom, Japan, Sweden, and Switzerland. This diversity and sectoral representation underscore the comprehensive nature of the ranking and its relevance to a broad array of stakeholders.

In a closer look at specific sectors, the resilience and adaptability of the Mexican economy become even more evident. Key sectors such as oil and gas, telecommunications, and energy continue to be strong performers. Notably, the automotive industry, which faced significant challenges in the wake of the pandemic due to logistics disruptions and parts shortages, has made a remarkable recovery.

Experts had termed the situation as "the perfect storm," but the industry has bounced back with a 10.5% growth in production from January to April of 2023 compared to the same period last year. While the growth has been gradual, it is a signal of the sector's resilience and its ability to adapt to changing circumstances.

Another compelling example from the list is Mattel, whose Montoi manufacturing plant in Escobedo, Nuevo León, has evolved into a strategic hub for the leading toy manufacturer in one of the most important industrial areas in Mexico. Operational since 1984, the plant melds human talent with cutting-edge industrial technology, including Industry 4.0 and robotics, allowing real-time monitoring of the company’s entire production chain. A pivotal moment for Mattel came in 2022 when it expanded its operations, reinforcing its nearshoring strategy by manufacturing in Mexico. Due to its proximity to the U.S. and Canada—its main customer markets accounting for half of its sales (including Mexico)—the plant has significantly reduced costs and improved performance. It can now dispatch merchandise to its distribution centers within 24-48 hours, enhancing its responsiveness to customer demand. Furthermore, Mattel contributes to the economic development of Nuevo León through its partnerships with local suppliers. Remarkably, 47% of its manufacturing relies on domestic goods, supporting local producers of resins, packaging, and batteries. This commitment to Mexico manufacturing was recognized when the company received the Invest Monterrey award, acknowledging its role in the future development of the toy industry in the state.

Mexico's ascent as a favored nearshoring hub is opening doors for various industries, notably in logistics and transportation. Companies like Union Pacific have been proactive in seizing these opportunities. Two years ago, Union Pacific invested nearly half a million dollars in an operations center in Eagle Pass, facilitating collaboration between U.S. and Mexican customs authorities—a significant industry challenge. This investment has spawned a successful cooperation model that the company plans to duplicate at other rail border crossings. To bolster its clients' expansion, Union Pacific is slated to invest an additional $600 million in commercial facilities this year. This strategic outlay aims to enhance the competitiveness of rail transport and seize market share from semi-truck transport, marking a pivotal change in the logistics sector. In addition, last April, Canadian Pacific Kansas City Limited (CPKC), the company resulting from the merger between Canadian Pacific and Kansas City Southern, announced the launch of the T-MEC Train. Unlike other rail operators, such as Union Pacific and Grupo México Transportes (GMXT), which require transfers crossing the border, CPKC’s trains and crews can operate seamlessly across Mexico, the U.S., and Canada, facilitating the movement of goods throughout North America.

Another important highlight is the industrial real estate sector, which is currently experiencing a new golden age. Fueled by the surge in nearshoring that was triggered by the pandemic, supply chain disruptions, and tariff wars between China and the US and the confluence of favorable conditions such as the USMCA, enhanced connectivity, and increased manufacturing production, demand has skyrocketed. From 2020 to 2021, the demand for industrial space grew by an astonishing 76%, followed by an 11.6% increase in 2022. This has resulted in an acceleration in the construction of industrial spaces.

Areas in northern Mexico, including Ciudad Juarez, Monterrey, and Apodaca, are experiencing particularly high demand for industrial spaces, mainly for export purposes and manufacturing in Mexico. American Industries, has capitalized on this growth, solidifying its position as a key player in this booming sector.

Upholding Corporate Integrity: American Industries and the IC500 Index

In the realm of corporate governance and ethical conduct, the IC500 Index serves as a significant benchmark. Prepared by Mexicans Against Corruption and Impunity and utilizing the Transparency in Reporting Anti-Corruption methodology from International Transparency, the index evaluates the top 500 companies in Mexico on five key factors:

1. Declaration of Principles: This is the cornerstone of a company's anti-corruption and ethics code policies. It outlines the company's public commitments, including integrity policies and a zero-tolerance stance on corruption and bribery.
2. Training and Scope: This factor assesses the company's efforts to disseminate the values outlined in the Declaration of Principles throughout the organization. It considers whether there is a training program in place and if the governing entities are explicitly subject to compliance with these principles.
3. Availability of Information: Companies are rated higher if they make their policies publicly accessible, particularly if these are available in Spanish on a Mexican website.
4. Relationships with Third Parties: This crucial component evaluates the rules governing interactions with third parties, such as clients, suppliers, public officials, and the broader business community.
5. Reporting System: To ensure compliance with the established values, a robust oversight and control system must be in place. This includes conditions for internal reporting, clear sanctions, guarantees of confidentiality and non-retaliation, and explicit channels for reporting.

It is noteworthy to mention that we at American Industries have an impeccable reputation in this regard. We not only adhere to these principles, but also go above and beyond in our commitment to corporate integrity. By making its anti-corruption regulations accessible and public and by establishing clear mechanisms for their enforcement, American Industries sets a standard for ethical conduct, thereby earning its place among Mexico's most important and reputable companies.

American Industries - Real Estate Solutions

At American Industries we are proud of our unwavering commitment to professionalism, top-quality construction, and maintenance in the industrial real estate sector. Our portfolio of services includes building leases, site selection, and property management. Additionally, we offer solutions to meet the needs of any company, ranging from inventory buildings, build-to-suit facilities, warehousing, and multi-tenant facilities.

We have presence across various cities and regions in Mexico, including Ciudad Juarez, Chihuahua, Delicias, Monterrey, Saltillo, Reynosa, Torreon, San Luis Potosi, Guadalajara, Queretaro, Leon, and other locations within the Bajio region. This extensive reach allows American Industries to serve the needs of both current and new customers efficiently, as well as those of our suppliers.

Achievements in Real Estate

American Industries has an impressive portfolio, with over 140 buildings built and leased, covering a total area of 20 million square feet. We also boast Class A new buildings and have a presence in more than 15 industrial parks across Mexico. With more than 160 tenants, American Industries has firmly established itself as a leader in the industrial real estate sector.

As the company continues to grow, we aim to expand our real estate offerings further, focusing on innovation and sustainability to meet the evolving needs of our clients.

American Industries - Shelter Administrative Services

American Industries offers a comprehensive range of shelter administrative services that facilitate the establishment and operation of foreign companies in Mexico as well. We eliminate the learning curve of relocating to a new country by taking care of all administrative and legal functions required for a business to succeed in Mexico, including Human Resources, Customs and Import/Export Administration, Duties Optimization, Accounting, Tax and Fiscal Compliance, Legal Compliance, Environmental and Occupational Health and Safety, Purchasing of Non-Production Goods and Services, Freight Forwarding and Warehousing Solutions, Expatriate Assistance, Networking with Organizations, Clusters and Governments, Site Selection, and Ongoing Consulting Services.

These comprehensive services allow companies to focus on their core business activities, such as manufacturing and distribution, ensuring success and long-term growth.

Benefits of Shelter Services

One of the most significant advantages of partnering with American Industries is the immediate access to crucial certifications, including IMMEX, IVA-IEPS, and OEA. These certifications ensure compliance with Mexican regulations and offer substantial financial benefits. Additionally, we have cultivated strong relationships over decades with local business partners, including labor unions, industrial clusters and organizations, educational institutions, and government entities. These relationships provide invaluable insights and facilitate various aspects of the transition process, from regulatory compliance to market entry strategies.

American Industries' dual strengths in real estate and shelter services make it a compelling choice for companies looking to start manufacturing in Mexico. Its recent ranking as one of the most important companies in Mexico is a testament to our resilience, innovation, and commitment to excellence. As we continue to grow, we are poised to set new benchmarks in both sectors, further solidifying our reputation as a leader in the industry.

For more information on how American Industries can facilitate your company's expansion into Mexico, contact us to get started.