When considering relocating or expanding operations to Mexico, choosing the right area for your company is an important and sometimes overwhelming decision. Each city and region offer different advantages, making it key to analyze each company’s needs and goals to find the ideal location. The complexity of this decision makes it crucial to contact a provider of shelter services in Mexico who can help you choose the area that is the right fit to meet the needs of your specific operation. Having their decades of experience, local knowledge, and network on your side will ensure that you can start up business in Mexico as quickly as possible and fully leverage all the benefits and cost savings it offers.

An area that is particularly attractive for Mexico manufacturing due to its diverse range of commercial sectors and economic activities, mature business culture, ease of logistics, and productive and available labor force, is Guanajuato State. The state’s capital of León, which is home to more than 1.7 million inhabitants and the 6th largest municipal economy in all of Mexico, is also its largest city and a burgeoning industrial zone. Though the city is famous for its leather and footwear industry, it has emerged in recent decades as one of the country’s most important manufacturing areas, especially for automotive manufacturing Mexico.

automotive manufacturing Mexico

The state also offers a well-developed industrial ecosystem in various other sectors, including textiles, agroindustry, business and cultural tourism. It is home to approximately 36 industrial parks. Four of these are in the capital city of León, including Parquesur, which is owned and developed by American Industries Group (AIG).

AIG’s Parquesur is located in the fastest-growing area of the city, with a privileged location near the country’s main highways. This means that goods can arrive at Mexico’s northern border in only 10 hours by truck. For the national market, it also offers easy access to neighboring states, including Guadalajara, Querétaro, Aguascalientes, Mexico City, and San Luis Potosí. The location is also advantageous for companies looking to set up offshore manufacturing in Mexico for shipments from Asia or Europe due to easy access to Mexico’s most important Pacific (Lazaro Cardenas and Manzanillo) and Atlantic (Veracruz) seaports. Another main advantage of Parquesur’s location is the availability of labor in the capital city, unlike other parks located in the state, which require personnel to travel greater distances to work.

Mexico manufacturing

This wide range of benefits has attracted several of the world’s largest automotive companies to León from around the world, including Michelin (France), Oshkosh (USA), MD Electronics (Germany), Eagle Ottawa (USA), Continental (Germany), American Axle (USA), Pirelli (Italy), GST Autoleather (USA), and Plastic Omnium (France). This growth of international companies in Mexico in the state, especially in the automotive sector, is expected to continue under the new rules of origin contained the recently enacted USMCA for automakers requiring a higher regional content value. Many Asian companies, including Japanese automakers, see Mexico as their only option to meet these new standards. In addition, a large Japanese population already living in León adds to the commercial attraction of the area, with potential clients for Japanese suppliers already established there.

Having worked in the region for over a decade, American Industries is in touch with the commercial and cultural environment in the state and has formed strong relationships with all of the most important local chambers of commerce and industrial associations, including the Guanajuato Automotive Cluster. These connections provide its clients with access to a rich network of business contacts and opportunities and valuable information such as the latest wage studies.

With such a comprehensive offering of industrial and cultural benefits, Guanajuato is a competitive option to consider for companies looking to start up operations in Mexico due to its well-developed supply chain, logistics infrastructure, highly productive and available workforce, and offering of industrial park spaces.

By Gerardo González | Guanajuato Regional Director | American Industries Group®
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