Coahuila industry, attractive for American investments
Alberto Espinoza, CEO of Zone Enterprises Mexico, an American company that provides GM in Ramos Arizpe
Bendix has more than 30 years in Ciudad Acuna and has three plants with state-of-the-art technology and a logistics center
A delegation from Coahuila traveled to Cincinnati, Ohio, to show the competitive advantages in the five regions of Coahuila in the different industries
From the arrival of General Motors (GM) to Ramos Arizpe in 1981, a large number of American automotive companies have established themselves in Coahuila year after year
In this century, industry in Coahuila has grown exponentially, to the extent that it requires more workforce in regions like the Southeast, and that is due to different factors that make the entity an attractive territory to fulfill projects and promote the Foreign Direct Investment (FDI,) activity lead by the United States and by far as the country that invests the most in the state.
With the arrival of General Motors (GM) and Chrysler (FCA,) in Ramos Arizpe in 1981, and the subsequent settling of the FCA Derramadero complex, in 1995, a great amount of American automotive companies has established in Coahuila year after year, bringing a domino effect with them, the development of a supply and supplies chain.
Since 1999, the U.S. accounted for 12,421 million dollars invested in companies settled in Coahuila, quadruplicating its closest competitor, as the second position is occupied by Canada, with 3,404 million dollars, followed by 1,934 million they have invested in Italy. This until the second quarter of 2019, according to the Federal Ministry of Economy.
Resulting of the competitive advantages offered by the business sector in the five areas of the state, such as one of the most important automotive clusters in the country, qualified workforce, geographic location, first level infrastructure with a wide network of suppliers are some of the factors that will make Coahuila one of the main destinations for the arrival of foreign investment.
This growth translates into better opportunities and best quality life since it works as a base for more foreign companies to choose Coahuila to bring their projects with a labor peace environment, explained Jaime Guerra, secretary of Economy.
“Coahuila has higher national and international recognition that benefits all its inhabitants. More companies consider our state as the main destination to invest,” he noted.
“Foreign Direct Investment Per Capita in Coahuila is the first one nationwide, with 1,230 million dollars as insofar, which is shown with an important economic revenue regarding the number of inhabitants,” he said.
From this 1,230 million, the United States leads together with Italy the listing of investments, exceeding 200 million dollars and with the arrival of new projects, it is estimated that the American country will end 2019 as the country that bets the most on Coahuila.
Guerra Perez underlined that Coahuila has excellent levels of competitiveness which are strategic factors for potential investors, such as qualified workforce, study levels, skills or competencies development of their workers.
TESTIMONIES OF CONFIDENCE
A clear example of the confidence deposited on Coahuila is the company Bendix, present for more than 30 years in Ciudad Acuna and that has three forefront technology plants and a logistics center, having in its operation more than 1,800 workers and including 38,276 square meters, as its continuous training.
Maria del Socorro Gutierrez Ochoa, director of corporate responsibility of the American company, assured that Coahuila continues being attractive for investment and expansion, proof of that is the company fulfilled an expansion of one of its plants in Acuna recently.
“Last year the company reached one billion dollars, therefore it continues to be one of the most strong with a growth of customers in Ramos Arizpe and Saltillo in Mexico and many more in the United States,” said the executive.
Meanwhile, Alberto Espinoza, general director of Zone Enterprises Mexico, American company that supplies GM in Ramos Arizpe, underlined the high level of competitiveness in Coahuila, as this has allowed Zone improve its quality in all aspects, generating an environment where the main benefited are the customers and hence, consumers of the final product.
“The advantages present in this region is its people, eager to work and do things better; strategic location, as we are closer to the border, two and a half hours from Laredo, four hours from Piedras Negras; in fact, we are three minutes away from GM, there are too much industry and growth opportunities here where we are located,” he underlined.
“We believe much in Coahuila, here things are being done right and that is why it is an area that attracts investments, because here they have tractor companies, and they make us, who are smaller to approach them and have more opportunities,” ended the general director of Zone Enterprises Mexico.
AN OPEN DOOR FOR MORE COMPANIES
During its most recent commercial tour throughout Cincinnati, Ohio, Miguel Angel Riquelme Solis, governor of Coahuila showed the business opportunities offered by the state to a group of businessmen in this city and they addressed the options to invest in Coahuila, either in new projects or in an expansion of operations.
The Coahuila delegations that accompanied the state official was integrated by Jaime Guerra Perez, secretary of Economy; Roman Alberto Cepeda Gonzalez, secretary of Labor; and Jorge Ramon Montemayor, undersecretary of Promotion and Strategic Projects in Coahuila.
The group exhibited the competitive advantages of the five regions of Coahuila in the different industries, with factors in common in the entire state territory, such as the specialized workforce of highest capability, professionals and a diversified academic sector and of first level, peace and labor stability, infrastructure in communication means and public policies committed to the strengthening of the productive sector to keep the economic development.
At the meeting held in the corporate offices of Easy Way Products Co., the officials underlined before the American businessmen that this is the formula through which Coahuila continues in first national place in Foreign Direct Investment attraction per capita, a fundamental factor for achievements in labor and economic matters, which mainly benefit families.
After listening to the presentation, the American businessmen recognized that the Coahuila economy has great attractions, not only for its privileged geographic position and terrestrial and aerial communication but also for the formality, impulse and authorities commitment.
Among the businessmen in the commercial promotion gathering with the delegation of Coahuila, were Jon Randman, CEO of Easy Way Products Co., company that already invests 6.5 million dollars in Torreon, anticipates starting operations in 2020 and that within five years will employ 2,500 people. Also, Andrew Quinn and Daniel Campos, executive chief and vice-president of operations of ILSCO Connections, respectively, the company focused on the mechanic and compression connectors industry.
Besides Tom Brennan, CEO of School Outfitters, leader in the manufacturing of furniture and school equipment, as well as Mark Daly IV, chief operating officer of Fisher Dynamics, company dedicated to the design and manufacturing of recliners, latches and special mechanisms for passenger vehicles, for the North American, European and Asian markets.
MEXICO, MAIN ALLY
During the first semester of 2019, Mexico located as the main commercial partner of the United States for the first time in history. The exports and imports value among both countries amounted to 361,107 million dollars, succeeding nations like China and Canada.
According to data from the Office of Census of the North American country, Mexico represented 15 % of the total foreign trade of the United States, with which it occupied the first position as its commercial partner, something never seen on a similar period.
From January to July, Mexico reported historic figures in exports and an unheard commercial surplus with its northern neighbor, for 209,711 and 58,314 million dollars, on each case, it implied annual growths of 6.3 % and 36 %, respectively.