A leader in Mexican manufacturing job creation this year is Tijuana in the State of Baja California.
Through the first four months of 2015 Tijuana manufacturing job creation expanded at an impressive clip of 7.8% over the same period during the prior year. This information was recently communicated by Federico Serrano Bañuelos, the president of Tijuana’s branch of the Mexico’s National Association of Maquiladoras, or, as it is known by its Spanish acronym, INDEX.
Tijuana manufacturing job creation from the beginning of January to the end of May of the present year resulted in the materialization of a significant number of new positions in the industrial sector of the City’s economy. This number represents the largest increase in jobs in industry in any of Mexico’s major cities.
The growth in sources of employment for Tijuana residents came about jointly as a mix of the arrival of new manufacturing entities to the city, as well as due to the expansion of companies with an already established local presence. Serrano Bañuelos also pointed out that many of the new Tijuana manufacturing jobs that have boosted employment figures were created during the January – May 2015 period were specifically the result of fifty-four 2014 industrial projects that came on-line and entered into production.
Rafael Solorzano, the current president of institutional relations for the Baja California Aerospace Cluster, cites several factors as being of significant import in efforts to attract new companies and the manufacturing jobs that they bring to Tijuana. These include an experienced workforce possessive of a manufacturing culture that dates back in excess of four decades, a large industrial base that includes globally recognized medical device, aerospace, electronics and automotive OEMs and their diverse supplier base and a geographical location that provides companies with easy access to major West Coast markets, as well as those along the Pacific Rim.
Both state and local incentives are available to companies that engage in Tijuana manufacturing job creation
Solorzano also points out that in addition to considerations granted to manufacturers on the Baja California state level such as the award of various classes of tax incentives, the provision of worker training funds, the special treatment of investments that are Science and Technology-based and the assistance that is afforded to companies in their efforts to identify local suppliers from which to source material inputs, Tijuana manufacturing job creation is also incentivized by the granting of certain tax concessions by the City. As a past director of promotion for the City of Tijuana, Solorzano played an important role in defining and implementing a program of targeted local economic incentives. Qualified companies that wish to establish a manufacturing presence that results in the creation of Tijuana manufacturing jobs, may request the City government to provide support in three different areas:
- savings up to 30% on the municipality’s Land Acquisition Tax (a 2% tax paid to the city for land purchase calculated over the transaction value);
- savings of up to 30% on Property Tax for a period of between 1 to 5 years;
- savings of up to 30% on public services such as licenses, permits (demolition, building), environmental and fire department certifications, etc. , for up to 5 years.
Similarly, firms that meet specific criteria that have been set to promote competitiveness and economic development within the City of Tijuana may apply to the local government for relief on property taxes.
Rafael Solorzano is available to help firms that may have questions related to the availability and award of any of these incentives.
As the State of Baja California is one of Mexico’s leading economies, as it continues to expand Tijuana manufacturing job creation will proceed at a healthy pace.