Development for Mexico’s manufacturing industry is supported by one of the smallest states in the country, Queretaro. In the past decade Foreign Direct Investment (FDI) in Queretaro has doubled, according to FDI Intelligence. Many factors have contributed to the state’s growing economy including government support for higher education and infrastructure. The state capital maintains most of the foreign investment and holds 31% of Mexico’s infrastructure budget for 2016.
Queretaro is home to many major industries and was named one of the top places to do business in the Americas for 2015/2016 according to the Financial Times. Aerospace, automotive, IT, home appliances, and food production are the five main industries with a presence in Queretaro.
In 2015 aerospace manufacturing in Mexico accounted for 47 percent of the country’s FDI. Queretaro is the main hub to Mexico’s aerospace clusters, and holds a large concentration of over 30 aerospace companies. Queretaro is regarded as the rising high-tech center for aerospace manufacturing, and its SMEs are significantly robust because of the big name companies settled in the region including Airbus, Safran, Delta, and Bombardier. As an epicenter for new aerospace innovation, Queretaro is enabling other industries to thrive within state lines. The list of aerospace companies in Mexico includes:
- GE IQ
- Liberty Spring
The automotive manufacturing industry in Mexico is growing at a continuous rate, and Queretaro is one of the main states maintaining the industry’s success. Queretaro is part of Mexico’s Bajio region, which is one of the top regions for foreign automotive manufacturing expansion. As a small but powerful location for automotive manufacturing, Queretaro hosts many companies including:
- Valeo Sylvania
- Vuhl Magna
In recent years Queretaro’s goal has been to develop its modern sectors for added value, one sector is information technology (IT). Queretaro is 350 km from Mexico’s own emerging “Silicon Valley,” Guadalajara, and the development of the state’s IT manufacturing industry is seeing success. Many companies have chosen to expand into Queretaro to enable the local infrastructure to grow. IT companies in Queretaro include:
Mexico is the 5th largest exporter of household appliances, and is expected to show an 8.7 percent annual growth rate by 2020. Queretaro produces more than 13% of the home appliances manufactured in Mexico, and houses major household appliance companies including:
- Diehl Controls
The food manufacturing industry produced $1.3 billion USD worth of goods in Queretaro by August 2016, adding to the overall 11% increase of produced goods in the state. As one of the largest producers in the Queretaro, retail food manufacturing is seeing an increase in investment from foreign companies, which include:
Queretaro has a rich manufacturing industry that continues to grow. Companies wishing to expand their business into Mexico should consider the small but strong state, and The Offshore Group can help!