National and foreign companies seek to expand into the State’s interior

 

The economic development of an entity can be measured through the studies of the National Institute of Statistics and Geography (INEGI, by its Spanish initials) and through the Gross Domestic Product (GDP,) which indicates that the state of San Luis Potosi is among the first places of greatest growth.

 

According to the GDP and the Quarterly Indicator of the State Economic Activity (ITAEE, by its Spanish initials) which provides short-term information that delivers an overview of the economic evolution of each of the 32 states, by the end of 2017 the estimated growth from San Luis Potosi is from 3.2 to 3.8 % and in the whole country is expected a development of between 2.3 to 2.5 %, which means that the State is growing almost twice as much as the rest of the economy in the country.

 

In this sense, the secretary of Economic Development of San Luis Potosi (SEDECO SLP,) Gustavo Puente said that the entity has remained in the economic growth first places during the last three or four years.  In addition, he added that regarding ITAEE, during the first trimesters of 2017, San Luis Potosi grew 4.8 percent.

 

On the other hand, regarding the investments that have been generated during the last years, Puente informed that the Ministry of Economic Development works together with large and medium companies that wish to invest in the State in the coming years.

 

“We call these investments ‘concerted,’ because they will be developed in the coming years and will bring more vacancies to the entity,” explained the government official of the state of San Luis Potosi.

 

In addition, he explained that in the two previous six years, the concerted investment that had been achieved was of 3,500 million dollars; however, he explained that so far in the current administration this figure has already been exceeded, because so far it has reached 4,300 million dollars.  He also added that if you add the part of the agro-industry and tourism, the amount increases to 4,400 million dollars.

 

SLP, UNDERPINS THE GROWTH ON ITS REGIONS

 

An important point to notice is the strong growth that is being generated in the three regions of the State, both in the altiplano area, as well as in the middle and huasteca, which begin generating a very important development, since with the arrival of new investments, what is intended is to detonate San Luis Potosi economy.

 

 

In this sense, the secretary of Economic Development of SLP, Gustavo Puente explained that only in the metropolitan area 84 % of the GDP is concentrated of what is generated in the State, thus, that one of the main challenges, is to be able to bring more investments to the three areas.

 

He reported that in the Altiplano area, in the northern part, in the municipalities of Matehuala and El Cedral, there are four important companies such as Huevo San Juan, HFI, Drexamaier and Grupo Exa; this last one will begin generating 1,500 job positions additional to the 700 that it already has.

 

“The North Altiplano is growing and it shows that 5,000 new jobs are being generated, which are registered with Social Security.  This development is benefiting other states, such as Nuevo Leon, due to its proximity,” said Gustavo Puente, who added that the informality rate in the municipality of Matehuala is being reduced, as new job sources are being generated.

 

Regarding the southern altiplano, he explained that the municipality of Salinas, new intermediary projects are being created between the state of Zacatecas and San Luis, in which new opportunities are sought with private investors.

 

In the case of the middle area, the head of SEDECO underlined that in the municipalities of Rioverde and Ciudad Fernandez, the Italian company Zoppas Industries decided to expand its production, thus generating more than 1,000 new jobs and highlighted that this region has two universities where young people are preparing for the industry.

 

And he emphasized that direct suppliers of Zoppas Industries are thinking of establishing themselves in the State.  “This speaks to the fact that the middle zone is detonating, not only in Rioverde or Ciudad Fernandez, but also in the municipalities of Lagunilla and Cardenas, which will also be benefited,” he explained.

 

Also, the state official informed that the Huasteca area has a different vocation, since its potential development is based on the tourism industry and the agro-food industry, but stressed that the city has an industrial area where they have invested about 17 million pesos in public infrastructure, which is allowing three already established regional companies to move into this area.

 

Likewise, Puente noted that companies in the logistics sector are helping the region, which thanks to its benefited geographic location - is close to the Gulf of Mexico and the Pacific - allows it to be considered an area of opportunity for domestic and foreign companies.

 

Another fact he mentioned was the donation of the plant that belonged to the company Grupo Nestle, which is located in the municipality of Tamuin, where about 20 hectares will be offered to companies from the area or from abroad.  “What we are looking for is to detonate this area, either with people from the region, foreign or, through a small industrial park,” he explained.

 

 

And regarding the metropolitan area Puente said that they have held working meetings with local businessmen, with the Union of Users of the Industrial Zone (UUZI, by its Spanish initials) and with the State Road Board of San Luis Potosi, in order to define priorities and thus retain and rehabilitate part of the industrial area avenues, in which 40 million pesos have been invested so far in the current administration; the amount was used to repair the main roads.  In addition, he detailed that anticipate investing another 13 million pesos in improving signage and lighting.

 

It should be noted that the objective of the companies that begin investing in the three areas of the State, is to take advantage of the existing workforce in those regions, as well as the geographical location and communication channels that favor these locations.

 

An INVESTMENT LANDSCAPE IN SLP

 

Most of the investments generated in the last 15 years in the state of San Luis Potosi came from companies in the United States; however, Puente clarified that the entity also has companies of other nationalities, but explained that the main challenge is to have a greater diversity of investments so, in turn, generate new markets.

 

Regarding the above, the head of SEDECO added that the State has 300 companies in the automotive sector and explained that the installation of companies in the entity was mostly due to the arrival of General Motors and BMW. “In the last eight years the arrival of new corporations has been detonated to add the 300 that currently exist in San Luis Potosi,” said Gustavo Puente.

 

The official also added that from September to December 2017, almost 900 million investment was announced and said that for this first quarter of 2018 is expected that new companies in the metalworking and energy sector will be consolidated in the State.

 

MOBILITY IN SAN LUIS

A topic of great relevance in all the country’s states is undoubtedly mobility, and San Luis is not the exception; a clear example of this is that according to the head of the SEDECO, the state government seeks that people live near their place of work so that their transfers are smaller. Currently there are some subdivisions that are expected to generate around 30,000 homes.

 

“I believe that with these medium-term challenges in terms of mobility, employability and immobility, we will be able to go through at least the next 10 years with new projections for the State,” said Gustavo Puente.

 

NEW JOB SOURCES

Regarding job vacancies, the head of SEDECO reported that in 2015 and 2016, about 20,000 new jobs were generated and he noted that by the end of 2017 there is a record of more than 35,000.  He explained that Goodyear had reached 1,000 vacancies, BMW had contracted 800 people and the GM had a re-hire as a plant.

 

On the other hand, in the case of employability, he explained that there is a new Universidad Tecnologica Internacional Bilingue, which will offer new senior technicians, since companies are looking for this workforce and the demand is considerable.  In addition to this 2018, companies such as Midori, Draxlmaier, Valeo and Zoppas Industries, will generate nearly 4,200 new sources of employment.