Site Selection: A Vital Process for Companies Transitioning to Mexico
The landscape of global manufacturing is continually evolving, and for foreign companies seeking new avenues for expansion, Mexico has emerged as a prime destination.
The site selection decision is paramount for foreign companies transitioning their operations to Mexico. Finding a suitable industrial building is a complex task involving the analysis of factors such as market demand, infrastructure, labor costs, logistics, proximity to suppliers and customers, and government policies.
A Few Considerations to Help Navigate the Site Selection Process
One of the key factors to consider during the site selection process, is the availability of suitable industrial buildings. Mexico offers manufacturers a wide range of real estate options. These range from existing facilities ready for occupancy to build-to-suit options.
Mexico’s leading real estate markets host industrial parks strategically located near major transportation hubs, facilitating efficient logistics and supply chain management. These industrial parks are equipped with modern buildings and amenities, making them an attractive choice for companies looking for turnkey solutions.
In addition to industrial parks, foreign companies exploring manufacturing opportunities in Mexico can choose from various building options. These popular options include:
- Custom-built facilities
- Build-to-suit arrangements
- Ready-to-use manufacturing plants
This flexibility allows companies to tailor their facilities to specific operational requirements, ensuring optimal efficiency and functionality.
Moreover, the reconfiguration of the global supply chain has increased the demand for industrial space in Mexico because companies are looking to manufacture near their primary market. This situation has drastically reduced the availability of industrial space in the main markets and led to a double-digit increase in rents.
Selecting a Location in Mexico Can Be Simplified Through Shelter Services
It is also crucial to conduct thorough due diligence on the legal and regulatory framework in the chosen location. Seeking guidance from local experts and partnering with established companies in Mexico, like Tecma Group, can help foreign companies navigate the site selection process smoothly and more efficiently.
Fortunately, Tecma’s Shelter Services goes beyond mere facilitation and includes comprehensive site selection assistance to streamline the process for foreign companies. By leveraging its expertise, Tecma meticulously examines the specific market needs of each client, pinpointing relevant industry clusters, identifying supply chain opportunities, and assessing essential infrastructure requirements. This tailored approach ensures that companies benefit from a strategic and well-informed site selection process, setting the foundation for successful manufacturing operations in Mexico.
Through its Shelter Program, Tecma implements a rigorous industrial site selection process to meticulously choose secure and suitable manufacturing locations tailored to the unique requirements of each of its Shelter Service clients.
Tecma has already identified industrial facilities for its Shelter Services clients in leading markets in Mexico, including Juarez, Tijuana, Torreon, Leon, Silao, Guanajuato, Mexicali, San Luis Potosi, and Monterrey. Tecma’s chosen cities have the necessary infrastructure to ensure safety and security to support companies establishing their manufacturing facilities in Mexico.
Nowadays, these cities have a high demand for industrial space, and vacancies can be less than 2%. In these markets, the industrial space demand has doubled since 2022, and only continues to increase. However, Tecma still has the ability to identify available buildings in these cities to meet its clients’ unique needs.
Moreover, these industrial hubs provide access to a sufficient and skilled manufacturing workforce, inventory of top-notch production spaces, and strategically advantageous locations for seamless supply chain activities. This comprehensive approach underscores Tecma’s commitment to facilitating a smooth and successful manufacturing transition for its clients in the dynamic Mexican market.
Choosing a location for manufacturing in Mexico with limited knowledge of the country can be challenging. Our industry experts will analyze your unique market needs to identify industry clusters, supply chain
opportunities, and infrastructure requirements.
Set up a call with one of our industry experts, and let us help you find a space perfectly suited to your needs.