Thursday, August 15, 2019

The art of finding the right the place to manufacturing in Mexico




Shippers looking to move cargo to, from, or through Mexico will likely face a challenge finding warehouse and logistics space, as vacancy rates in some areas is low even though stock increased by more than 6 percent in 2017 and rental rates rose. Both, clear signs of the heated demand for warehouse space in Mexico. All of this, is forcing manufacturers, logistics providers, and retailers to wait up to eight or more months for new space specially in hot cities like Guadalajara, Mexico City and Monterrey.
The ability to deliver product quickly is a critical component of selecting the site for a warehouse, they need to be located near transportation and have access to airports and seaports in addition to highways. This is why finding the right industrial warehouse in Mexico is key to success and getting it right has become an art. We’ve put together a quick check list of key factors you shouldn’t miss.
  1. Availability of skilled labour
  2. Labor cost
  3. Highway accessibility
  4. Occupancy or construction costs
  5. Availability of advance IT Services
  6. Available and cost of buildings
  7. Availability and cost of land
  8. Tax exemptions
  9. Corporate tax rate
  10. Expedited or “fast track” permiting
  11. Proximity to major markets
  12. Availability of long-term financing
  13. Federal, State and local incentives
  14. Low union profile
  15. Utilities availability and costs
  16. Environmental regulations
  17. Inbound/outbound shipping costs
  18. Proximity to suppliers
  19. Raw materials availability
  20. Accessibility to major airport and ports

Even though spaces might be limited in some areas, the same tightness has in turn attracted new development, specially newly built industrial parks and warehouses with modern capabilities. Take for example in 2017, American Industries opened the first phase of its planned San Jorge Industrial Park, that will have a capacity for more than 10,000 employees with a total extension of 247 acres, developed in four phases with a combined projection of 30 inventory and BTS buildings.

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